Learning Option Pricing

Took two courses in Derivatives/Option Pricing. Still forget B-S, put-call parity, Greeks, etc really fast after a couple of months.

Curious if anyone can offer advice to LEARN THROUGH DOING. Is there any option market/trading that really teaches you?

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Commodity markets are some of the most straightforward I think. Pretty cheap too. They are also what I mainly know so I am biased.

For example, right now in KC Wheat you can buy 30 cent out of the money calls for Jan expiry for around 6 cents/bushel. A contract is 5,000 bushels so that would be a $300 outlay for you to start. Corn for calls 30 cents out of the money, Jan expiry are trading for around 3 cents/bushel. Puts are even cheaper for both. You can play in the crude market for around that same amount if you're willing to put on positions out of the money by a good bit. Just depends on what you're strategy is I guess.

 

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