Reddit reviews Understanding Options 2E

i learned a lot from these two books:

https://www.amazon.com/gp/product/B00GWSXX8U (how options work)

https://www.amazon.com/gp/product/B007STBH58 (how not to be a retard)

if you're doing options you have to understand how they're priced (intrinsic vs extrinsic value, time decay, implied volatility, etc).

other than that, just practice and feel the pain of losing money. find out what works. first time i did options, i lost 3k and wanted to kill myself.

I'd recommend Understanding Options by Michael Sincere. That book helped me understand spreads, covered calls, and Greeks.
https://www.amazon.com/Understanding-Options-2E-Michael-Sincere-ebook/dp/B00GWSXX8U/ref=mp_s_a_1_4?keywords=options&qid=1557183764&s=gateway&sr=8-4

This book helped me a lot:


https://www.amazon.com/Understanding-Options-2E-Michael-Sincere-ebook/dp/B00GWSXX8U


Also do the opposite of everything this sub suggests :)

Please read this before continuing.. its a good crash course. You will murder your account and profits without these core understandings. Remember chinese news and information trump charts. Great first win!

Understanding Options 2E https://www.amazon.com/dp/B00GWSXX8U/ref=cm_sw_r_cp_api_i_.vkDCb9PTYHH7

Books! This is where i started.

In regards to your question, a short answer would be, it depends. If you purchase that option during the day and the underlying stock is moving towards your strike price, you already have a profit as long as you sale that option that same day and do it quickly. If you wait and the movement of the underlying remains flat, you will notice the value of your option diminishes due to time decay. The estimated decay is described by the theta value of your option. If it has the value of -0.2, then that option will lose 20 cents per day. Theta will increase the closer you are to expiration.

If you wait until expiration or near expiration, the price of the underlying stock must reach the strike price + the premium you paid in order to make even. If this condition is met earlier, then you might be able to make a profit depending on other parameters: time until expiration, strike price, the greeks (delta, theta, gamma, and vega are the more important one), underlying stock price, volatility, and more. I have listed the more important one. I really recommend you this short book if you want to learn more. Understanding Options The author's style of writing is very easy to read.

Understanding Options