Can someone please explain or direct me to a website that explains how to trade stock option?
Answers: CBOE
Chicago Board of Options Exchange
The Options Institute
Free learning tools on-line and free seminar.
http://www.cboe.com/LearnCenter/default.
PS Avoid all those on-line stale line trading school that charge an arm and leg. They are all hype.
-- 20 year veteran trader (see my bio)
Good articles here:
http://daytrading.about.com/popular.htm
There's option trading .. and then there's option trading.
You know, what you get from most trading books or online sites is watered down for the average being. Unfortunately this watering down has the effect of oversimplifying and going away out important details.
The result is that any advantages that may be have by trading options, are no longer near.
The proper way to trade option is to learn adjectives the complicated stuff. But this requires understanding option trading from the inside perspective (investment banking) and understanding graduate conservatory mathematics.
If you don't enjoy experience with any, then option aren't going to give you any end in your trading, whatsoever.
To take an idea of how professionals trade option, pick up any book by Nassim Taleb. Chances are you won't understand it, within which case undoubtedly you are better past its sell-by date not trading options.