I finished Options as a Strategic Investment, by McMillan, back in June of this year. I have to recommend this book very highly. However, this book is geared more towards the Intermediate/Advanced options trader. So, unless you have your fundamentals down, hold off on reading this book, but if you are there, or are just curious, it is an excellent book.
I'm not an advanced option trader yet (hoping to get there someday), but I was able to glean a lot of good ideas from this. For example, yesterday I mentioned buying "low and selling--volatility that is." This is an idea direct from McMillan's book.
Volatility will increase the price of an option. There are a myriad of strategies that would allow me to do this, and the book goes into detail about advanced strategies such as back spreads and front spreads. And when I get to that trading level, I will be implementing these ideas.
But again, the idea of volatility can apply to selling covered calls. We buy the underlying security 100 shares of the stock, and the sell 1 OTM contract. The trick is, find a stock that is volatile but currently undervalued, and then sell the option which is overvalued due to the high volatility. This takes some homework, but that's the name of the game.
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