Futures and options are a very popular form of financial market instruments and trading them allows the traders to adjust their positions and strategies based on ongoing market trends and happenings. But such a trading process is much more complex. Fortunately, there are numerous traditional books that can largely simplify learning the options trading process. Here are the 17 most notable books.
Options as a Strategic Investment
Written by Lawrence G. McMillan, this book is deemed as the options trading Bible. The 1,000+ page book contains practical options trading strategies designed for minimizing risk and maximizing profits including specifics like which strategy would work best in which market scenario. Moreover, it also contains significant information about hedging through options and their tax implications.
Option Volatility and Pricing Strategies
Written by Sheldon Natenberg, this book is a go-to reading option for many market professionals. It talks about the impact of market volatility on options pricing and thereby aids in determining correct fair values in the options market. Additionally, it also explains theoretical option pricing models and specifies market strategies based on market conditions.
Trading Options for Dummies
Written by Joe Duarte, this book is more about providing expert advice. It contains step-by-step guidance regarding top market-based options strategies that can reduce risk and enlarge portfolios. Moreover, it also teaches about the basics of market and sector analysis and the approach one should have while trying out any new options strategy.
Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit
Written by Dan Passarelli, this book teaches to accurately evaluate options pricing or identify profit opportunities. It mainly explains the impact of the four options Greek terms I.e., Delta, Theta, Vega, and Rho on the options and also provides multiple strategies that can be profitable in case of change in any or all of these four Greek factors.
The Options Playbook
Written by Brian Overby, this book can be a valuable reference book for all kinds of Options Traders. The book specifies 40 different options strategies for different market conditions clearly stating their risks and rewards. Moreover, it also explains complex subjects like implied volatility and Options Greeks in an easy and humorous manner.
Options Trading Crash Course: The #1 Beginner’s Guide to Make Money With Trading Options in 7 Days or Less!
Written by Frank Richmond, as the name suggests this book is a perfect guide to beginners in Options Trading. This book teaches about the options market from scratch and explains risk calculation and investment choosing strategy in an easy manner. However, as it is for beginners, in-depth explanations aren’t provided.
Fundamentals of Futures and Options Markets
Written by John Hull, this book offers a thorough understanding of the futures and options trading markets without making the use of calculus. It explains the market with the help of lots of numerical and real-life examples and with that prepares the readers for the working world.
The Option Trader’s Hedge Fund: A Business Framework for Trading Equity and Index Options
Written by Dennis A. Chen and Mark Sebastian, this book teaches about earning a steady income from Options along with basics like managing trades and maintaining portfolios. Using real-world examples important concepts like the framework of hedging through options is explained in an easy manner. Additionally, it also comes with an operations manual to help readers set up their businesses.
Options Trading QuickStart Guide: The Simplified Beginner’s Guide to Options Trading
Written by ClydeBank Finance, this book is perfect for beginners as it walks them through a multitude of strategic trading decisions and explains about arriving at critical decisions. It also discusses important trading aspects like fundamentals of put and call options, leveraging intrinsic value, implied volatility, Options Greeks, and the mechanism of short selling.
The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies
Written by Guy Cohen, it is an easy-to-use reference book for Options Traders. The book systematically represents effective options trading strategies along with explaining the kind of situations in which each such strategy can be used. Therefore, upon reading this one can implement optimal trading strategies based on every opportunity, trading environment, or goal.
Covered Calls for Beginners: A Risk-Free Way to Collect Rental Income Every Single Month on Stocks You Already Own
Written by Freeman Publications, this book talks about the covered calls strategy in general. It explains why covered calls are perfect income-generating strategies and how they can create instant cash with premiums. Upon reading this book even the most conservative investors can benefit by applying this to their existing investment strategies.
Positional Option Trading: An Advanced Guide
Written in three parts by Euan Sinclair, this book is for experienced traders. The first part talks about efficient market hypothesis and forecasting and about the discovery of profitable trading strategies. The second part mentions Volatility trading structures and directional options trades while the last part discusses the concept of risk in general.
Written by Michael Sincere, this book explains Options in general like how they work, their pros and cons, their difference with stocks, and how one can use them to leverage their income. It has illustrations explaining profits and losses from simple options and option spreads and also covers advanced topics like Options Greeks.
How to Trade Options: Day Trading Strategies
Written by Warren Ray Benjamin, this book is like a companion that explains every detail that is involved with trading in options like calls, puts, strike price, and many more. It helps readers interpret important trading inputs like pivot points, resistance calculation, and support points along with teaching them to predict stock reversals.
The Only Options Trading Book You’ll Ever Need
This book by Russell Allen not only helps readers step into the basics of options trading, but also teaches advanced options trading strategies through various tutorials and important options strategy references. Moreover, it also explains things like recommended IV% and Delta values, strategy goals, trade management techniques, and profit and stop-loss recommendations.
Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor
Written by Lee Lowell, the book is a complete guide for options traders. Its four options trading strategies are about buying deep-in-the-money call options, selling naked put options, selling option credit spreads, and selling covered calls. Moreover, it contains in-depth insight and expert advice regarding these strategies to help achieve optimal results within the options market.
Your Options Handbook: The Practical Reference and Strategy Guide to Trading Options
Written by Jared Levy, this book is a comprehensive and simplified guide for investment in options and risk management and talks about the secrets and mechanics of the world of options. It discusses different trading strategies for all conditions whether the market is bullish, bearish, or neutral, and also provides useful tips and tricks that can help make money.
For options trading, experience is the only key to perfection. However, one must have sufficient knowledge before making trades to avoid significant losses. The above-mentioned books cover almost all the important aspects of options trading. So, if you want to gain some knowledge about the options market or want to upgrade your trading knowledge then you can choose any one of them based on your preference.