Learning options is faster when you follow a clear sequence and practice as you go. Here’s our opinionated roadmap for 2025, plus a workflow to turn theory into durable skills. This guide includes vetted books, free official courses, and a simple 30-day plan, with links to practice inside ImpliedOptions so you can move from reading to repeatable execution.
TL;DR: Your stepwise path
- •Beginner — calls/puts, break-evens, time decay, defined vs. undefined risk
- •Intermediate — IV vs. realized vol, verticals, probability & payoff diagrams
- •Advanced — pricing intuition, skew/term structure, risk management & sizing
- •Practice — P/L experiments with price, time, and IV; journal and review
Risk reminder: Options are not suitable for all investors. Losses can exceed premiums on undefined-risk strategies. Know your broker’s rules and your account’s permissions before trading.
Core books (read with a chart open)
- •Sheldon Natenberg — Option Volatility & Pricing
Grounding for how options behave as price/time/IV move; read twice. - •Euan Sinclair — Volatility Trading
Process, expectancy, and edge development; very practical. - •Dan Passarelli — Trading Options Greeks
Turning Greeks into usable dials for adjustments and exits. - •Jeff Augen — The Volatility Edge
Event/earnings patterns, skew effects, and data-driven setups.
Supplementals and references:
• McMillan — Options as a Strategic Investment (broad reference)
• Gatheral — The Volatility Surface (skew/term structure theory)
• Hull — Options, Futures, and Other Derivatives (academic anchor)
Free, credible courses (official sources)
- •OCC / OptionsEducation.org — Official fundamentals
- •Cboe Options Institute — Courses + webinars
- •SEC — Options Disclosure
- •Investopedia — Options hub
Podcasts & video (mindset + mechanics)
- •Chat With Traders — process & risk mindset: site
- •The Derivative (RCM Alternatives) — vol/risk deep-dives: YouTube
- •Option Alpha — visual strategy explainers: site
How to practice safely (inside ImpliedOptions)
- •Explore flow and context: Check option flow → analyze contracts in P&L engine
- •Build risk-defined trades with outcomes visualized: Strategy builder
- •For each idea, record: thesis, break-evens, max loss, exit rules (profit target, time stop)
- •Run what-ifs: ±price, time decay, ±IV; model IV crush around earnings/events
- •Use realtime P/L tracking and notifications to compare plan vs. reality
Optional paper-trading workflow
- •Start with 1–2 strategies (one debit, one credit).
- •Size to a fixed small risk per idea (e.g., 0.25–0.5% of account in paper terms).
- •Log each decision with screenshots and greeks; tag by setup type for review.
30-day starter plan (sketch)
- •Week 1: definitions, break-evens, debit vs. credit, basic Greeks; journal templates
- •Week 2: IV/realized vol, IV Rank/Percentile, simple verticals; define entry/exit rules
- •Week 3: calendars/diagonals, iron condors, earnings planning; pre/post-event checklists
- •Week 4: risk sizing, P/L replays, review loop; convert paper rules into live rules
Skill checkpoints (self-test)
- •Can you explain why theta often accelerates < 21 DTE and how gamma risk changes.
- •Can you pick between debit vs. credit spread when IV is low vs. high.
- •Can you adjust a short put that moved ITM using time (roll) or strike (delta reduction).
- •Can you estimate expected move and check if the strategy’s payoff fits it.
Practice inside ImpliedOptions (quick links)
- •Unusual Options Activity: ImpliedOptions FREE option flow tool
- •Profit Calculator & Scenarios: ImpliedOptions FREE Profit Calculator
- •Strategy Builder: Our FREE strategy builder
FAQs
Do I need advanced math?
No. You need pricing intuition, not proofs. The books above build it.
How many strategies to start?
Two or three (bullish, bearish, neutral). Add more only when you can state why each fits a thesis.
Can I learn from YouTube alone?
Useful, but uneven. Anchor with OCC/Cboe and a couple of core books for a reliable base.
What about earnings trades?
Model IV crush and expected move first. If your max loss exceeds the expected move envelope, reconsider or size down.