A curated collection of resources to help you learn more about options trading. We have no financial relationships with any of these resources.

Recommended Books

• Options as a Strategic Investment by Lawrence McMillan — Comprehensive guide considered the bible of options trading
• Option Volatility and Pricing by Sheldon Natenberg — Essential reading for understanding volatility
• The Options Playbook by Brian Overby — Accessible introduction with strategy explanations
• Trading Options Greeks by Dan Passarelli — Deep dive into the Greeks and risk management
• Options, Futures, and Other Derivatives by John Hull — Academic but thorough treatment of derivatives

Official Exchange Resources

• OCC (Options Clearing Corporation) — theocc.com — The clearinghouse for all U.S. options
• CBOE (Chicago Board Options Exchange) — cboe.com — Largest U.S. options exchange with educational content
• OIC (Options Industry Council) — optionseducation.org — Free education from the options industry

Key Formulas

Reference formulas commonly used in options analysis:

Option Basics

Put-Call Parity (European Options)

Breakeven Calculations

Risk Management Guidelines

• Never risk more than you can afford to lose
• Start with paper trading before using real money
• Position sizing: Consider limiting each trade to 1-5% of portfolio
• Always know your max loss before entering a trade
• Understand assignment risk, especially near expiration
• Be aware of ex-dividend dates for short call positions
• Monitor positions regularly, especially near expiration

Account Requirements

Most brokers have tiered options approval levels. Common requirements:

Note: Approval levels vary by broker. Higher levels typically require more experience and capital.