The Basics of Options

Abstract

Obviously, the best way to become familiar with trading options is to trade. As happens in many fields, a book can serve as a useful guide to new concepts and later provide a perspective once experience has been gained — but there can be no substitute for the experience itself. I have written this book therefore as a guide and not as a text book, to assist and accompany the reader as he or she learns, applies and trades the financial products described hereafter. Additionally, the book is meant to help develop an understanding of the mechanics of how option trading works and thereby also help potential market traders anticipate and benefit from the experiences encountered in the actual market.