The mastery of any topic begins with education and understanding.  One of the most basic building blocks when it comes to learning something new is vocabulary.  This is true whether learning about architecture, law, or any foreign language.  Each group of individuals maintains a standard vocabulary which allows for communication and expansion of ideas.  The same holds true for those learning to trade options.  The concepts are not necessarily difficult to master but take time and effort just like anything else.  I would like to share with you several sources of information that will enable you to begin the process of learning to trade options.  All of these resources are free to use.  It may seem like some of the information is repetitive but that is an excellent way to improve one’s grasp of the concepts and trading techniques.  Couple education and some trading experience, and you can master options trading.

The Chicago Board of Options Exchange has an excellent online tutorial which covers basic and advanced option trading strategies. Learn about calls and puts, butterflies and straddles. Options pricing and many other topics are also discussed. Peruse the rest of the site to gain access to a plethora of information.

The Options Industry Council was formed in 1992 to provide options education for investors.  At their website, you can learn all the basics about options and then move on to more advanced topics.  You can take online classes and watch a webcast.  You can even practice virtual trading.

Optionetics is another site that provides options education.  Optionetics is actually a company that conducts seminars that you can attend for a fee.  There is also a lot of free educational information on the site.  I use the site primarily for the discussion boards.  At these boards, you can get lots of useful tips, but you might have to spend some time wading through.  Probably the best discussion boards I have found as they are very active.

Finally, I would like to put in a plug for your local public library.  There are many books on option trading.  Feel free to use this resource to your advantage.  I know I have.