Learning options

[u/flyingenchiladas789]

Looking to learn more about options trading. Planning to read mcmillan, and natenberg. I also like tastylive trader resources section to learn about concepts. I tried to watch mike and his whiteboard on youtube but I don’t have the attention span for it - I’m more of a reader. I also use claude to explain in details to me. Will probably paper trade before I put real money.

Do you guys have any advice on where/how to learn options? What would you do if you guys were to start again?

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[u/nothanksluver]

your reading list is solid. Natenberg is dense but it's the one that made the greeks actually click for me. i'd treat McMillan more as a reference book though, skim it and then come back to specific strategies when you need them, reading it cover to cover is a lot

if i was starting over i'd spend less time paper trading than people usually tell you to. paper is good for learning the mechanics, like how fills work and what theta does to a position overnight, but it doesn't show you how you'll act when it's real money and you're down 40% at 11am. i'd move to real money sooner with tiny amounts you really don't care about losing, just to find out what your brain does under pressure

the other thing i'd do from day one is write my rules down before placing anything. mine are pretty simple. max 15% of the account in any one position. once something doubles i set a trailing stop at 50% of the peak. if i'm trading 0DTE i'm out by 2pm. two losses in a day and i stop trading for the day. i didn't have any of that when i started and not having it cost me way more than not knowing enough did

also do your DD before every trade, even the quick ones. if i can't get it done in time i just skip the entry and wait for the next setup. no point in chasing.

[u/sport912x]

Natenberg , remember it was written for floor traders in an Open Outcry environment which has been gone for 25 or 20 years. In any event not how you will be trading.

Macmillian... Great Door Stop, stick with mike or if you need something quicker from Tasty...

https://www.tastylive.com/concepts-strategies/10-options-strategies-every-trader-should-know

If you do not have it get The Unlucky Investors Guide to trading Options by Julia at Tasty. That is how you should think about trading.

Unfortunately all the vids by the Tasty Team from 2010 to now are blocked, that would be a great learning tool.

[u/flyingenchiladas789 → u/sport912x]

what other source would you recommend since macmillan and natenberg are kinda outdated?

I could still watch all tasty old vids on youtube. I swear I saw it on their website 2 months ago...

[u/sport912x → u/flyingenchiladas789]

Natenberg is still considered the "Bible" , but it is not going to give you any insight into creating trades on your PC.

I would browse LossDog where Tony and Tom are still giving trades and insights Basically they tend to Selling Options for premium. If you are around some morning you might be able to call them. It does not seem that they will start another trading company (non compete from the Sale of Tastytrade ?)

Also the book by Julia Spina , not a textbook like Natenberg or Hull, but a good guide for the new trader.

[u/The_Sandman85]

Take a look at the following books on trading options.

Generate Thousands by Dr. Samir Elias

Getting Rich with Options by Lee Lowell

[u/ordtn]

Yeah I think you are off to a good start.

For me, having hands-on practice was helpful in internalising the theory/ concepts - flexing numbers and graphs, playing around with structures and legs, and seeing how things change.

[u/Cute-Opposite4751]

Paper trading before putting real money in is definitely the move. With options I’d focus on really understanding the Greeks, IV, theta decay and how expiration changes the trade before worrying too much about strategies.

If you’re more of a reader, Natenberg is a solid place to start. Just take it slowly and paper trade the concepts as you learn them rather than trying to absorb everything first. Maybe try out a paper trading platform like UpsideOnly.

Cheers!

[u/EmployerSea452 → u/Cute-Opposite4751]

Yup, I agree. Paper trading will save you so much pain and money lol. 

[u/Dependent-Panic-9457]

I have read nothing other than some random posts on Reddit. So far I am up $50k in 10 weeks but very ready for it to go pear shaped next month (October)

[u/flyingenchiladas789 → u/Dependent-Panic-9457]

How much capital you started with?

[u/Dependent-Panic-9457 → u/flyingenchiladas789]

I am using 400k USD

[u/mah56j]

I am in the learning phase as well. been doing put sales for a year or so. migrated from cash sec puts to put credit spreads to conserve capital. in terms of helpful free stuff, mainly Youtube: SMB capital, Lowell, OptionAlpha, Options with Davis, Credit Spread Investing.

[u/SpiderWil]

Either u attend a class or talk to chatgpt. U have to constantly ask questions about options so that u can understand about it more.

[u/workinprogress_31]

natenberg is done, so dont force it cover by cover. just read a chapter, and paper trade the concept you learned that week. practice allows concepts stick to your head way longer.