Options Trading Tutorial

Where to find the best options trading information?

I need to write a paper for a course at school. The topic I chose is Options trading. The prof told me he knows a lot about options, and that he wants to see a, for example, report on a Theory of Options Trading. What are some good books, sites, anything that I can read/study so I may write a great paper? I want to spin the paper towards this direction- How to profit from buying and selling Call and Put contract... By using delta, moneyness, etc.. Please advise/help. I appreciate it! TIM

Public Comments

1. The best advice I can give you to read as much as possible about options. There are a lot of books on the subject. cover the area both from the buyer's side and the writer's side. Writing options is more conservative than speculating by buying them.
2. if it's for school try "Financial Engineering - Derivatives and Risk Management" - Dirk Nitzsche and: "Option Market Making" - Allen Jan Baird and thousand of other books.
3. Delta neutral trading should be the focus. It is option hard to make money by picking a direction because of the change in volatility and time decay. By using strategies that mainly focus on time decay you increase your chancing in making money in the market.