Option Trading Resources

[FrankRadi]

Hey Everyone,

I've been trying to find good resources to learn option trading. I have 5 different books and have been researching and watching videos but they are not as basic as i need them. I'm looking for something easy to understand because everything i read seems like step three when i want to start at step one.

ex: ill read a word and look up the definition but the definition has five other words explaining the original word that i also dont understand and when i look those words up its the same problem. It feels like an endless cycle of trying to understand a definition of a definition.

I feel like after and hour or two of reading i haven't understood or learned anything.

Do you guys have any suggestions or resources i can look into?

Please and thank you to anyone.

-Frank

 

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[rwhyan]

You should know general stock market terminology and how it works before thinking about options.

Next, I'd try "Options Made Easy."

It explains how options work and only assumes basic knowledge of the stock market. What really helped me understand options was looking at the risk profiles for long calls, short calls, long puts, and short puts. Once you internalize those charts and understand exactly what they mean and why, then the concept of options becomes easy to understand.

You can also read on Reddit (r/options, r/stocks, r/robinhood, r/wallstreetbets [don't take this one seriously but it helps you get accustomed to terminology]).

I've found the best way to learn something is to just immerse yourself into it: read books, watch videos, read forum posts (Reddit), think about it in your free time, talk about it with others who are knowledgeable, etc. Lastly, open up your brokerage account and just look at the options trading platform. Don't submit any orders, but just explore the page and try and see if you can decipher what everything means. Pretend you are placing various orders (start with long call) and just think about it would function, how much $ you could lose, how much you could gain, why you'd lose/gain, and lastly the greeks (I'd understand the other stuff first though).

 

[FrankRadi]

You should know general stock market terminology and how it works before thinking about options.

Next, I'd try "Options Made Easy."

It explains how options work and only assumes basic knowledge of the stock market. What really helped me understand options was looking at the risk profiles for long calls, short calls, long puts, and short puts. Once you internalize those charts and understand exactly what they mean and why, then the concept of options becomes easy to understand.

You can also read on Reddit (r/options, r/stocks, r/robinhood, r/wallstreetbets [don't take this one seriously but it helps you get accustomed to terminology]).

I've found the best way to learn something is to just immerse yourself into it: read books, watch videos, read forum posts (Reddit), think about it in your free time, talk about it with others who are knowledgeable, etc. Lastly, open up your brokerage account and just look at the options trading platform. Don't submit any orders, but just explore the page and try and see if you can decipher what everything means. Pretend you are placing various orders (start with long call) and just think about it would function, how much $ you could lose, how much you could gain, why you'd lose/gain, and lastly the greeks (I'd understand the other stuff first though).

Thanks for the advice. I started learning about stocks first before even getting into options. Ill check out your book suggestion for options when i get to that point lol. I've been immersing myself into everything stocks and so far gained a pretty good knowledge so far. I still have a long way to go but thanks for the extra resources to learn. I haven't tried reddit yet so ill check those out.

Thanks again