Once you start to have the basics down, I would recommend that you borrow this book from the local library: "The Complete Guide to Option Selling" http://tinyurl.com/ygf5q8t That is the link to Amazon and it's 1st edition which provides the ability to look inside the book. There is a second edition out. The reason why I point out this book is that we are all different individuals and maybe it would fit your personality to sell options. I am in no way saying that selling options is good nor bad, or better than any other strategy. But do believe that you would gain from the perspective of looking at it from the other side (of the trade). MM
I have the definitive answer to this question... ... but you'll have to wait till expiry day - I'll let you know then.
If you're just beginning at options, don't read Cottle, Natenburg, Hull or McMillan. They are very good, but a bit more than a beginner can handle. Start with Wolfinger, Cohen, and Thomsett to get the basics, then move on to more advanced material. Also, don't forget that web has many good sources, as well. The cboe is good, too, especially the Dan Sheridan videos. Avoid any book or website that shouts "you can make millions by next Wednesday morning", or ones that promote naked selling as if it is a risk free sure thing. These books and sites downplay the risks and ignore the probabilities.
/ I have the definitive answer to this question... ... but you'll have to wait till expiry day - I'll let you know then. / I look forward to the answer MM
No, the best part was how to use all your account margin to sell ATM nakid calls on the 3x etfs, which he strongly recomments. Wait, I hear the phone ringing, Its my broker, do I have to answer it???:eek:
There a number of free and good stuffs on learning options trading on the internet. A lot of them can be found on a list here: http://optionstradingresource.blogspot.com
Another vote for Filthy's book. It's very mathematical in the calc and stats sense, but the options side of things actually is very enlightening. Even if you are not a PhD in theoretical physics, the trading analysis and risks are very intuitive. http://www.amazon.com/Volatility-Tr...=sr_1_1?ie=UTF8&s=books&qid=1256597425&sr=8-1 Again, this is more for intermediate options traders. The OP may want to stick to all things Cottle
One of my fav's is Larry McMillan "Options as a strategic investment" Very good resource book as a refrence not a sit down and read book. Its one to keep on your desk for looking up various strategies and risk profiles. Hope that helps.