This book assumes that you have familiarity with the stock market but didn't trade options, so it carefully describes what option is and why it can be useful. It progresses from the simplest to the most complex strategies. The book is mostly theoretic, it doesn't have real-life examples. If you need them, get "McMillan on Options" by Lawrence G. McMillan. An important technique of selling puts as a way of buying the underlying security is also not covered in this book. Warren Buffett obtains most of his stock holdings through selling puts. He got most of his Coca-Cola Holdings this way, and, recently, Burlington Northern Santa Fe. If you are interested in this technique, read chapter 19 of "Options as a Strategic Investment" by Lawrence G. McMillan.A good characteristic of "Understanding options" is that each chapter ends with a set of review questions and answers that will assist you in absorbing and implementing the material covered. It can also be useful if you are teaching options and would like to prepare a questionnaire for your students. Another book that may also be useful for that purpose is "Profit with Options" by Lawrence G. McMillan, it also have questions and answers for each chapter.If you are new to the stock market, you may instead get "Options Made Easy" by Guy Cohen or "The Options Course" by George A. Fontanills.

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