Understanding options

For a start, Options Trading Guide from investopedia.com is an extremely useful source of information about options, from basic to very advanced ones. First part of the guide is here:

There is a navigation bar at the end of the article that brings you to next parts.

In regulated markets it is possible to buy and sell standardized options. By buying options, you cannot lose more than the premium paid. Selling options is an advanced trading strategy that in certain cases may result in a theoretically unlimited loss.

And here is another guide that describes some advanced strategies employing options

(navigation bar is at the end of each article)

Black-Scholes Model

Wikipedia article is very good

Black-Scholes Model Calculator

Advanced strategies
Trading derivatives series in ERNā€™s blog

In particular this part describes his income generation strategy

Covered calls

S&P 500 Covered Call ETF

See also other files in this section.

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Thanks @Dr.PI ! I really want to learn options/calls/puts. Any reference material is always welcome.

For what itā€™s worth, on most trading desks in the financial companies I have been working with during my career (I am an IT guy, not a trader), the reference book that was always mentioned is Options, Futures and Other derivatives, by John Hull.

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Related to options, I can share two valuable resources:

Zack Finds itā€™s a scanner of Unusual options in US markets, this means it detects trades that are highly irregular and can give some insights on how can probably the market or a specific stock move. Some informations can provide an edge on trading options. With the free version you have access to 30% of the selection and also long-reads on specific unusual bullish and bearish activities.

And secondly a very knowledgable person on unusual options and market flows that recently started a sub stack where he shares his vision on the markets: JP Finance. [Edit: Iā€™m not a trader]

I read this book (in German). At times a bit clumsily written, but all-in-all quite understandable and helpful for a beginner.

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