Straddles, Strangles And Spreads by Richard M. Koff
Here's a primer for the new trader who wants to move beyond simple buy-and-hold strategies.
Options provide such a bewildering variety of risky and complicated investment choices that most small investors avoid them. You can trade options on stocks,
commodities and several indices, such as the Standard & Poorís 500 or the Standard & Poorís 100. Index options, in particular, offer several important advantages. Unlike commodity options, you never have to worry about accepting delivery of the underlying commodity or even closing out a position before expiration, because all that is taken care of by the clearing house. Further, if you trade the S&P 100 index option (OEX), you donít have to open an account with a broker specializing in options because the OEX is traded by stock brokers.