I trade stocks for the most part, but would like to get into options. I'm not trying to get rich quick, but rather learn to use options as a way to hedge against losses in my stock positions. My question is, how many ways are there to trade options?. In stocks you have scalping, momentum trading, swing trading, position trading..all different styles. What's out there in the options game? - Nathan ps - is this book any good for a beginner? "The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies"

the number of ways are virtually limitless. but, you may want to begin with either directional and non directional.

how many ways to trade options? there are 2 components -- CALL and PUT which you can BUY to go long or SELL to go short... (we are now standing at 4 strategies) if you combine the CALLs and PUTs with BUYs and SELLs of various strikes and expirations and order sizes, you can come up with 26 basic strategies. with these 26 basic strategies, you can double them, stack them, stretch them, cross them, lift a leg here, add a leg there... adjust them during the course of the trade to come up with endless new combinations of strategies. Before we get into the complexity of option pricing and volatilities, and the mystical world of greeks, let me ask you: are you sure you want to get into options?

I admire your vision and determination. in terms of books, I would start with these http://www.amazon.com/gp/product/07...=pd_bbs_1/103-8739337-9973418?ie=UTF8&s=books or http://www.amazon.com/gp/product/04...=pd_bbs_1/103-8739337-9973418?ie=UTF8&s=books both are pretty good. You can also get a quick start here: http://www.888options.com/ have fun !

I would absolutely agree with TUMS on McMillian but rather than the second one read Natenberg.."option Volatility and Pricing" it gives you a very clear idea of how the volatility in option's can be used, and helps you understand why option pricing often seems to go against the underlying stock movements. You also need a pretty good fundamental and technical understanding of stocks and the markets.

To really make a guaranteed income, you should package those 26 strategies up into a slick 2 day seminar and charge $3000 to attend. Maybe sell an expensive subscription to a software service too.

Lol, this book is 700+ pages long. This should last me a while I already have the book "All about options"..would the book you recommend be a good leap, or is it very advanced stuff?.