@Milk N Cookies
I know you asked in the FSR thread but thought I would respond in here...
Here's the official education resource from the Chicago based Options Clearing Corporation (OCC). The Options Clearing Corporation is the main clearing agency for equity options. Whenever you apply to trade for options through a broker they make you read and sign the Options Disclosure Document, a publication from the OCC, to inform you of risks associated with trading Options. Check out their education site here:
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In the past two weeks I made 400% on FB calls betting it would reach $300 when it was trading around $250. I made 300% off MTCH calls betting it would reach $135 post-earnings when it was around $120. And today I'm up over 500% on FSR calls bought on Friday betting it would reach $15 but judging on how it traded in the after hours I probably should have sold but since they expire on 11/20 I decided to hold.
I've also lost on options plays during this time, but I cut the losses on most of them before they could expire worthless. I was even down on the FB play but held through. I had a play on for TWTR pre-earnings, I was up 100% on earnings day before the after-hours when it would release earnings. I should have sold. Earnings came out, they had a great quarter, but stock stil tanked and opened the next day down $10+. My calls were worthless when the market opened. Just to highlight the risk involved.