The first thing that you have to know before trading in stock option is that stock options are not stocks, and just because you trade in stock that does not license you to trade in stock option by default. When you are planning to trade in stock option, you should find out as much as [...]
Short of having a crystal ball, picking winners when stock option trading is not as hard as many people would have you believe. In the first place, when considering purchasing or selling stock options, you need to conduct extensive research on the underlying stock yourself, or rely on someone else to do it for you [...]
When it comes to option trading, the most important lesson to retain is an understanding of what’s actually being traded. The real commodity in any option trading strategy isn’t the underlying stock itself, and it has little to do directly with phrases such as implied volatility, net debit, net credit, strike price, or expiration date. [...]