LEAPS TRADING: tell me more (tell me more)

[edtost]

nassim taleb's options book is probably better than hull for someone with no support structure.

[mrbaseball]

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I would also recommend Option Volatility and Pricing by Natenberg

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I've never read the book but this is probably good advice. My initial options training was a series of video lectures by Natenburg. From what I know of him I'm sure his book is on the money. Understanding your greeks (delta, vega, theta and gamma) are very important for anyone who seriously wants to trade options.

But like others have mentioned experience is of key importance. If you stay small while learning with a safeish spread strategy you can learn without a great deal of risk. Be aware that options "juice" is generally prohibitive at most places for small options players and good spread execution can be trying at times.

[pig4bill]

These days most brokerages that can do spreads will post your bid/offer on the exchanges(ISE, PCX, etc) but that doesn't mean you'll get filled. And yes, comparatively dspeaking, option spreads are brutal for anything that is not very high volume. You can easily pay 20 cents or more on an eighty cent option.

[Bubble Bully]

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thanks for the suggestions. I don't have any on the job training to support me (poli sci major.) I'm going at it solo.

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i just reread your initial post.

you are DOA if you're trying to get from polisci to options trading in weeks. not even a chance.

your portfolio will likely be losing money since you don't have a) experience, b) a grasp on finance in general, and c) deep knowledge of options.

LEAP options in particular are VERY sensitive to changes in implied probabilities & interest rates given their time horizon.

if you want to learn...full steam ahead.

if you want to try and trade...i'd give you an emphatic, HELL NO.

Barron

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I do not have any illusions grandeur. I expect this to all be yet another series of wasted information that enters my brain, such is my course.