Getting Started in Options

Title: Getting Started in Options
Author: Michael C. Thomsett
Publisher: John Wiley & Sons, Inc 2010

This book is like one of those 'dummy' series of books on how things work.  It is really down to the very basics of options trading, explaining all that jargons, the conventions, and most important, the strategies and risks.

It is eye-opening for someone who has never traded options before.  There are many established strategies and they are so interesting.

I will definitely recommend this book to whoever wants to have some exposure to options.

In addition, this book emphasis on the importance of paper trading, before getting your hands wet in the real options trading.  Many might be tempted by the great profit potentials options offered, whilst overlooking the grave risks involved.  Options is a complex investment instrument, and if used wisely, it will boost your wealth significantly, but it can hurt your as well.

The author recommends using the paperTrade platform, free of charge, offered by the Chicago Board Options Exchange (CBOE).  This virtual trade platform lets you get a feel of options trading.  The trading environment is the same for real trading, except the money you use is virtual, can carries no real value (of course, your risk is virtual, too).