Options Trading 
A Guide

This Option Guide was created, in part, as a response to the queries we've gotten from folks who want to understand more about using options.  We also think it's important to be very knowledgeable about the world of options in general, and the all-too-common mistakes people make in trading them, so that you can protect yourself and your money.  The themes we discuss can benefit you, whether you are an option buyer or option seller.  

The Options Guide is divided into 2 parts:

Part I offers an overview of options trading and discusses some of the basic terminology for those who are fairly new to options.

Part II is an intensive look at how option prices are structured, and discusses a number of key elements that go into an option's price -- and the many pitfalls you should avoid when you buy or sell them.  

Follow the links below to read through the Guide.  We also appreciate your feedback, and invite you to write to us with your comments.

Part I.  Options Overview

Part II.  Option Pricing - Understanding & Using It

 Virtual Trade


ęCopyright 2003 Tony Carrion.  All content presented is the exclusive property of Market Harmonics. com, which is owned & operated by T. Carrion & Co., LLC, and may not be duplicated or distributed without the express written consent of the author.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for education and research purposes and therefore should not be considered complete, precise, or current. In no event should the content of this site be construed as an express or an implied promise, guarantee or implication by or from Market-Harmonics.com or T. Carrion & Co., LCC, that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given.  Past results are no indication of futures performance.