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Author: Patzer Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 11154  
Subject: An Options Newbie's Homework--Part 1 Date: 5/24/2001 7:16 PM
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Hello folks. I am relatively new to options, having had approval to trade them for less than a year. I will be asking some questions, some of the possibly dumb. In an effort to avoid repetitively dumb questions, I have looked at all the back posts on this board. There is a wealth of information in the older posts. Reading them, and working at understanding what is said, has answered many questions I might have otherwise posted here.

Sometimes a regular poster will advise a newbie to read some back posts. This is good advice, particularly with respect to the first 2000 or so posts. These contain quite a bit of educational material that can be helpful for those new to options. For those new to options who haven't the patience to read all the back posts, here is a list of some old posts that I found valuable. This list is quite subjective; posts covering material I was already comfortable with didn't make the list. Later posts on the same topic as some of these posts also didn't make the list. You get the idea; if you really look at all the back posts, you'll find some gems.

274 (asmythee) Synthetics. A must read for understanding risk factors. If you don't understand it the first time, read it again and play with the equations on paper.

1602 (TheExpertNovice) Deals with the risks of covered calls, but useful for the links to sites showing the probability of getting called out.

1737 (zman49) Tax implications of covered calls. If all this post does is get you to read the part of IRS Pub 550 that applies to your position, it's done its job. Also, post 2144 (zman49) with brief description of the IRS Straddle rules.

1896 (jlepark) A newbie asks some questions about how people use options. The thread contains a number of very educational responses from more experienced traders.

1984 (vanrijner) The perenniel newbie question: "Let's say I had $2000, and I wanted to get involved w/ options." A variety of educational responses, including a reference to an audio by McMillan (of OSI, McMillan on Options)

2106 (jwpii) " I was wondering if anyone out there was using any kind of option spread strategy. " Informative replies

2208 (zman49) "I suggest we share some of the dumber moves. They may be our own, or they may be ones we know of others making. (By the way, the dumbness of a move may have very little to do with the profit/loss recognized.)" Start of a good thread.

2338 (zman49) Post & start of thread with excellent description of what gamma is and why we should care.

3144 (MDCigan) Start of thread on money management.

3229 (zman49) Post with pointers to earlier threads about covered calls.

3896 (zman49) Post with pointers to earlier discussions on which brokers are good for options.

4155 (PeterEidson) Calendar spreads explained.

4301 (PeterEidson) Strategy Matrix
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