Day Trading

www.investools.com

www.shadowtrader.net

www.thinkorswim.com

As for sources, check with your brokerage. Many of them make learning tools available to their clients.

Best of success.

As for whether you should sell now, that's a more difficult question. A $4 premium on a strike that was double the stock price seems very high to me for a 5 month option. But if the stock increased that much in 2 days, the volatility must be very high. You still have 5 months left before option expiration. You have to look at the characteristics of the underlying stock and its stock chart to see what the best course of action is. Some of these momentum stocks can run up (and down) hugely in a matter of days. Why did the stock go from $30 to $48? If it was due to a buyout at a price of $48, then you should sell the option as it is unlikely that a $60 buyout price will emerge.
Options are very risky and should only be used by people who know what they are doing.

$3000 is too high a cost to pay to learn what's all free and available all over the net.

Go and download the "OPTIONS TOOLBOX" and play with it. Everything you need to know is there.

You can get this from http://www.cboe.com/LearnCenter/RCTools.aspx

Explore CBOE – Chicago Board Options Exchange, for wealth of free information on options. There you have links to other sites too – Options institute etc.

Buy the book – Options as a Strategic Investment by Lawrence G. McMillan, for lot less than $3000 ( think it's $50 at Amazon.com )

p.s.
Mr.DowJones assessment that Option trading is riskier cannot be more wrong. On $ for $ basis, with respect to Risk & Reward, stock trading is lot riskier than option trading. Options goal is to minimize risk and maximize reward. No such thing with stock trading

However, NOT all options are liquid enough for you to do instant turn arounds. Some options are soooo thinly traded that you can put it up for sale for days and yet not get anyone pick it up. Option liquidity is still somewhat of a psuedo science to determine for sure but a rough guideline will be to ensure that it is based on a heavily traded stock of over 500,000 transactions a day, that it has a fairly high open interest of about 1000 at least (this tells you that at least this option contract has been actively traded before) and to make sure that there are at least some volume on the contract you are buying before you enter on it.

For more option trading basics for free, please feel free to rampage through http://www.optiontradingpedia.com/

.

Are you for real? The question is was it legal on YOUR part?! Don't give me your 'welcome to the real world' BS, you broke the law–apparently well aware that you were breaking it–and it bothers you that they caught on to your game and shut you down? It's funny, I suppose, in a sad sort of way…

Yes, what they did was legal. It was legal and it was proper. You should just feel lucky you got away with it as much as you did, and leave it at that!

But you're just making this stuff up anyway, aren't you?

http://www.cboe.com/LearnCenter/Tutorials.aspx

<<<I heard that the risk is so much grater than stock.>>>

With options, if you understand them, you can choose how much risk you have, more, the same or less than with stock.

<<<Also can you earn money by predicting which stock will go up or go down ?>>>

Yes with the right strategies. If you simply buy options you should have predictions about which way it will go, how much the price will change, and when the price will change.

<<<Does option trading similar to FOREX?>>>

The only real similarity is that both allow you to use leverage.

———–

A few comments about some things said in other responses.

All options have expiration dates. Normal options expire on the Saturday following the third Friday of the month, up to eight months in the future. Some stock also have long term options known as LEAPS, which can expire up 30 months in the future. I have no idea why one the responses talked about nine months.

As for the comment that trading options is gambling, that can be true but does not have to be.

Similarly, I would not say most professionals trade options to hedge. When they hedge it is to reduce risk, protecting profits or reducing losses. Most professionals initate option positions to make a profit, then adjust/hedge the position as required.

———–

One thing to understand is that option traders usually try to profit with predictions about the future volatility of a stock price at least as much as the direction the stock price will move.

options aren't stocks, they are stocks derivatives. option prices tend to move up and down much more then stocks so you can make or lose money much faster with options then you can with stocks.