Finding the best options trading books in today’s digital age is like trying to find a lost key in the ocean!
With the plethora of free information available on the web in the form of blogs, tutorials and YouTube videos, it ultimately makes us even more confused than when we started off!
The good part about the web is that you can find information on any subject at the touch of a button. The bad part is that it is only on a certain segment in that subject and not the big picture.
Though it is not easy to learn everything from a book, it is best to start with a good options trading book as it will give you a clear learning path and a solid foundation of understanding options trading.
With that acquired knowledge, it would help you to navigate and understand different levels of information available on the Internet as well as understand complex topics in your learning journey.
So, here are my recommended 6 best books on Options Trading that provides a clear explanation of options trading and various strategies.
This is one of the best options trading book I have ever read. It is very thorough and well organized. It goes step by step through every option strategy, analyzing the various payoffs, follow-up actions if the market goes against you.
It is written clearly and concisely, with lots of examples. Though the learning curve is substantial, the rewards make it worth the effort and this book gives you the opportunity to learn what you will need to know to become successful.
If you are a beginner trying to learn new strategies, he has lots of chapters on that as well. It not only explains the “what” and “why” but also goes into more depth on each topic than most other Options books do.
This is also one of the best options trading books for beginner and intermediate options traders. This book is like a cookbook of options–identifying which strategies to apply, the risk and why.
The book goes over every option strategy that you will ever need for whatever situation. It explains, graphs, and walks you through each in good detail. It always mentions the best, worst, and medium outcomes for each strategy, as well as the effects of time and price.
You will certainly go back to it over and over again as a reference guide. The book is well worth the price.
Learning to trade options is a big challenge. When I started off, I would panic because I could not tell why I was losing money.
Dan Passarelli’s book on the option Greeks helped me to learn and understand the option Greeks as well as to better manage my trades.
Here is a snapshot of what you can expect to learn:
Why we make or lose money – Importance of delta
How to use delta to determine when to take profits or cut losses
How to calculate a new Delta based on Gamma
How to use Vega to predict if my trade will make or lose money based on a rise or fall in volatility
Why it is important to impose a time stop due to theta eroding the value of a long position
The importance of measuring your entire position in regards to each of the Greeks.
The author also shares bits of his personal experience and his insight from a market maker perspective was something I found to be extremely valuable. Overall, I strongly recommend having this as a reference guide.
This is also another one of the best options trading books for options trader beginners. This book is a great resource for the various vocabulary and terminology that a trader will encounter during the course of business.
The topics are laid out in an easy to read format. There are detailed examples offered and graphs included to illustrate the concepts. This book includes a ready-reference guide for all of the different terms that the reader learns located at the back of the book.
This was incredibly convenient as I tried to reference back to what I had read. In addition to being a great reference guide, the author also offers the reader some strategies that can help the reader to stay organized and begin to profit at this complicated activity.
This is a must-have for an investor or trader that is just starting out in the world of options trading.
This book gets right into why you are interested in options. Each option scenario is broken down in such a manner that anybody with a basic understanding can grasp it easily. For each situation, he discusses the Greeks, risks, pros and cons, as well as an example.
The Author walks you through the various strategies in a down to earth approach. He explains how to build your strategies from a single option trade, and then to more complex strategies one leg at a time; to improve profits and reduce costs.
He then explains how to monitor the strategy and best of all how to exit the strategy. He does a very nice job explaining which strikes to pick for the strategy and why.
This book is an absolute read for any aspiring or new options trader.
This is the best options trading book for those who want to start trading options and never thought of selling them.
This book touches some broad issues of selling options in the market. The book doesn’t go into too much Greek or any high mathematical calculations.
In this sense, the book is practical and not too theoretical. The book discusses each strategy’s advantage and disadvantage and how to utilize fundamentals for commodity futures and others.
It also briefly mentions seasonality as well. They also try to make things as simple as possible.
If you are new to option selling, this book might be a good introduction before getting into something more theoretical. Option selling is a bit more complicated than what the book implies but nonetheless a must have book.