@numbersman has done a pretty reasonable summary for you above.
It's an asset traded by the more risk welcoming traders as there is an expiry date on the "existence" of an option compared to a head. Thus, you have to be active in your decision making and cannot just let it languish in the bottom drawer for years to come.
I dont have any literature, but have perused many websites and text books in my days that have given me my basic knowledge of the oppies game. I suggest a cheeky google search is a good place to start, but as said, er @numbersman has given you a pretty reasonable summary.
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