Rookie needs help decoding options and where to begin?

[murray t turtle]

Option Volatility and Pricing: Advanced Trading Strategies and Techniques
by Sheldon Natenberg

Read this book

%%
Good + helpful;
but he gave away some advanced hidden treasure;
cash markets .
Too advanced for many option buyers-sellersLOL, but helpful+ profit read.
Lord Almighty/ I feel my temperature rise/ higher + higher/like a sweet song of a choir.
Then the song/ pattern repeats, no wonder LBR like$ music; \
E Pressly Song/Burning Love> 83,777,777 .His 99.9% math LOL he is perfect for buyin' + sellin' options-maybe
NOT a prediction or big book seller;
UNknown Market .....by Jack Schwager is better book .

 

[ironchef]

The best advice you got was from @newwurldmn, second best from @taowave.

From this amateur, IMHO, you start with a thorough understanding of the underlying. Options represent the collective opinions of the market on the underlying, its current state, its future direction, potential moves and risks.

Once you have an opinion, compare it to the market's opinion. If it is the same, there is no good trade unless you are a pro, understand the microstructures, and can exploit momentary mismatches.

If it is not the same, you might have found a golden lottery ticket.

Good luck.