Reddit mentions of The Rookie's Guide to Options; 2nd edition: The Beginner's Handbook of Trading Equity Options

When did you guys become such cocky shits that are too good to recommend a fucking book or website to this guy?


Check out Rookie's Guide to Options first. You should have no problem writing covered calls on a stock you own right now, but must have 100 shares and plan to keep holding.


If you want a primer on 'pricing,' just know that options price is all based on volatility. If people expect high volatility (like around earnings) they will bid up prices on options, making them more expensive right before announcement. After an event like earnings, volatility drops. To make money on options, you usually have to make a correct estimate on the direction and/or volatility of the stock, depending on if you've hedged one out or not.

I almost wrote out a long piece but -
Options are simple and extremely complex at the same time.

And it really depends what you want to do with them

If you are serious about learning options (and I think they are incredibly valuable) - I would strongly recommend picking up a book or three. Option for Rookies is a good start.

If you have more specific questions - I can answer.

The first edition is from 1988, and the Amazon reviews for the second edition say that there are a lot of errors in the new version. How well does the 1988 edition hold up to current trading strategies? Or is there another newer book that you would recommend?

EDIT: Any thoughts on The Rookie's Guide to Options; 2nd edition: The Beginner's Handbook of Trading Equity Options by Mark D Wolfinger? Or Options as a Strategic Investment by Lawrence G. McMillan?

Other than the books mentioned, I've found the books from this guy really smart and easy with a lot of experience in them
https://www.amazon.com/gp/aw/d/0988843919/ref=mp_s_a_1_1?ie=UTF8&qid=1483674053&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=rookie+option&dpPl=1&dpID=51WZmVJy%2BAL&ref=plSrch