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Regarding options trading, in a nutshell, with options (assuming you buy
them, not sell, or, as it's called, "write" them) your risk is known and
limited - i.e., you cannot lose more than you paid for the options (whether
you bought puts or calls, and whether you bought them on stocks, commodities,
or indexes such as the OEX or the S&P). With futures contracts, of course,
you can lose zillions. (Trust me!) I would suggest to anyone who wishes to
trade options the purchase of a great book, "McMillan on Options," by
Lawrence G. McMillan, published by Wiley. It's avaliable by amazon.com or in
most big bookstores. It gives a terrific overview, and then it takes the
reader into as much detail as he or she wishes to have (e.g., butterfly
spreads and all that stuff). After that, if you felt it would be useful,
there are a number of computer programs that assist you, ranging in
sophistication from none, to great ("Option Master," about $100), to primo
perfecto ("Option Station" from Omega).
Good luck.
Larry
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