To Read, Perchance to Dream

Another popular read is Options as a Strategic Investment, by Lawrence McMillan. It provides all the basic definitions and concepts and does a very good job of showing how to apply the strategies that are most effective in various circumstances.

One of the best books, though a bit more advanced, is Options: the Hidden Reality, by Charles Cottle. It can be found on his Web site, RiskDoctor.com, which also offers mentoring services, chat rooms and Web seminars. Cottle gets into dynamic hedging, position dissection and understanding the things that motivate market makers and define the trading landscape.

Of course the best way to learn is by doing, but if you are not quite ready to plunk down your hard-earned cash, paper trading, or using one of the many virtual trading tools available through most online brokers or the sites mentioned above, is a great way to not only take first steps but test more sophisticated multi-leg strategies.

As always, I look forward to your feedback.