Sebastionay:
You're getting good advice from the responses above.
1) Read all you can before starting. Any investment that gives you leverage, such as options, is an investment that can be very dangerous as well as potentially quite profitable. Realize that there are substantial risks involved in selling options, also known as "writing" options. Even if it seems like "free money", writing options is inherently dangerous and should be avoided until you really understand options and money management.
2) If you only have $1000, I'd recommend that you save some money until you have a more substantial amount which you can do while you are reading everything you can find about options. There are many good books, and the CBOE website is also good. Search through elite trader, as well. There are many good posts from experienced and wise people. One of the respondents above, "dagnyt", has given you his website address. He is reputable and knowledgeable. He will also help you to avoid taking stupid risks that you will later regret.
3) If you see a book or website that promises returns like 10% every month, avoid it like the plague. Getting large returns involves taking large risks.
4) Finally, start with buying options in very small quantities or paper trading for at least 6 months until you begin to get a feel for what can and does happen to options prices. Options prices are affected by a number of variables such as time to expiry, volatility, and the relation of the strike price to the current price. You need to see them in action for awhile so that you can make better decisions. Option trading is exciting and interesting, but it will be much more rewarding for you financially if you take this advice.
