13 Best Option Trading Books [Updated 2022]
To thrive in today’s financial markets, you should consider using options in your investment efforts. In this article, we highlight the 13 best options trading books to read in 2022 that you may want to consider reading –
- options as a strategic investment (get this book)
- options trading crash course
- options trading for dummies (get this book)
- the options manual (get this book)
- get rich trading options : four winning strategies straight from the floor (get this book)
- options trading: quick start guide (get this book)
- rogue choices ( get this book )
- trade choices in your spare time ( get this book )
- the options strategy bible ( get this book )
- how to make a million dollars trading options ( get this book )
- options volatility and pricing (get this book)
- the complete guide to trading options ( get this book )
- greek trading options ( get this book )
let us discuss each of the options trading books in detail along with their key points and reviews.
You are reading: Best books for learning options trading
You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: Options Trading Books (wallstreetmojo.com)
#1 – options as a strategic investment
by lawrence g. mcmillan
about the book
The book explains how listed options, as well as non-equity option products, provide you with new and strategic opportunities for investment management. it also offers you the latest market-tested tools that can enhance your portfolio’s earning potential while limiting your downside risk, regardless of market performance.
book review
is one of the best qualitative options strategy books available and provides you with a directional view of the market. It thoroughly explains complex options investing topics in a very simple way. It also discusses how you can build various classic options strategies and how these options perform despite market movements. covers hordes of business-tested tactics and proven techniques you can employ while investing in fresh, innovative options products. The author has provided many examples and exhibits to help you understand the power of each strategy. After reading the book, he will realize that there are multiple ways to profit using different options strategies, regardless of any possible market views.
key points
- If you plan to start options trading, this is a must read for you as it serves as a guide and reference book.
- This comprehensive book explains different concepts and applications of available option strategies.
#2: Options Trading Crash Course
The #1 beginner’s guide to making money trading options in 7 days or less!
by frank richmond
about the book
This book gives a brief overview of how options trading works in the real business world and explains some of the simple strategies for options trading.
book review
The options market is very difficult to understand, especially for the novice trader. Basically, if he intends to start options trading, then he must develop his understanding of what lies beneath the options market. In this book, the author explains various trading strategies and how he can use them all to generate healthy profits. he also teaches you how to spot patterns in the market, how to recognize great investment opportunities, and how to make money from them. by the end of the book, you will realize that understanding the fundamental principles of the options market is not as difficult as it seems from a distance.
key points
- can be an excellent guide for beginners, as it explains how the options market works from scratch.
- this book is a collection of several fundamental concepts brought together in one place.
- It is a direct, simple and easily understandable book.
#3 – trading options for dummies
by joe duarte
about the book
The book will help you select the right options trading strategies based on your investment needs. will teach you how to run cost-benefit analysis to build a strategy that will always win no matter how the market behaves.
book review
The book is considered one of the best if you are interested in learning the fundamental principles and strategies of options trading. If you are a professional investor with some knowledge of trading, then this book can help you gain a better understanding of new techniques, associated risk factors, and earnings profiles. Options trading can be an effective way of risk management and the author gives you the details that explain the same. The book covers a wealth of information, including technical analysis, exchange-traded funds (ETFs), and trading strategies that may be useful to you if you plan to become a trader soon. indeed, the author gives you enough theories that you can quickly understand and put into practice.
key points
- This is a comprehensive book on options trading, which can serve as a good reference book.
- This book is not best suited for beginners. you need some trading knowledge to get maximum benefits from the explanations provided in it.
#4 – the options manual
by brian overby
book review
The goal of creating this superior options trading book was to simplify options trading and provide investors with guidance for trading in various market conditions. covers over 40 options trading strategiesoptions trading strategiesoptions trading refers to a contract between the buyer and the seller, in which the option holder bets on the future price of an underlying security or index. read more broken down into intriguing games, that will keep readers engrossed and feel engaged. The format of the work has been kept uniform, and it will offer information on:
- strategies considered and implemented
- breakeven point at expiration
- optimal point for trade execution
- maximum potential profit or loss
- a margin money requirement
- time constraints
- implied volatilityimplied volatilityimplied volatility refers to the metric used to find out the probability of changes in the prices of the given value according to the point of view of the market. it is calculated by putting the market price of the option in the black-scholes model.read more
This expanded edition consists of 10 new works and 56 new pages of content describing:
- a brief history of options
- five common mistakes options traders make and how to avoid them
- extended glossary
- that explains the difference between index and stock options stock options are derivative instruments that give the holder the right to buy or sell any stock at a predetermined price, regardless of prevailing market prices. It generally consists of four components: the strike price, the expiration date, the lot size, and the issue premium.read more
- manage early exercise and allocation
- calculates the position delta and its use to manage the overall position risk in the case of a multi-leg option strategy.
key points
This options trading book is framed in a very simplified yet constructed manner, which is beneficial to both new and experienced traders. It will cover the definitions and basic concepts required to understand the market, especially for new traders, tips to avoid common beginner mistakes, and suggested strategies to gain good control of the market.
See Also: 20 Life-Changing Books That Shape Your Thinking
To cater to experienced traders, the emphasis is on implied volatilityimplied volatilityimplied volatility refers to the metric that is used to understand the probability of changes in the prices of a given security based on the point of view of the market. calculated by putting the market price of the option in the black-scholes model. Read More of the market.
#5 – get rich with options: four winning strategies straight from the trading floor
by lee lowell
book review
is a trusted options trading book rich with in-depth information and expert guidance that offers strategies and insights needed to achieve optimal results within the options market. will quickly cover the basics before moving on to the four options trading strategies, which have helped the author make profits in this field over time. the strategies are:
- buy deep-in-the-money call options
- sell putnaked putnaked naked put (np) is a bull option strategy in which the investor writes (sells) a put option without have a short position in the underlying stock. read more options
- selling credit spread options
- selling covered calls
key points
this best options trading book is packed with real examples of real trading and detailed discussions of how options can be used as a hedge hedging hedging is a type of investment that works like insurance and protects you from any financial loss. hedging is achieved by taking the opposite position in the market.read more, speculation or income-generating tool. will cover extensively:
- a detailed operation of the strategies mentioned above.
- explaining how to set up a home business with the best options trading software, tools and websites.
- a detailed discussion of how delta and volatility can be used to the trader’s advantage.
#6 – options trading: quick start guide
by clydebank finance
book review
This best options trading book is a first class straight forward book with lots of information packed into one easy to read book. guides readers through a multitude of strategic trading decisions, showing how a trader thinks and how he arrives at critical decisions. it motivates the trader to be ambitious and become a formidable, sharp and cunning options trader. Chapters in this options trading book include:
- Basics of OptionsBasics of OptionsOptions are financial contracts that give the buyer the right, but not the obligation, to execute the contract. the right is to buy or sell an asset on a specific date at a specific price that is predetermined on the contract date.read more
- trading fundamentals related to call and put options
- sound options trading strategyoptions trading strategyoptions trading refers to a contract between the buyer and the seller, in which the option holder bets on the future price of an underlying security or index.read more for beginners
- key influencers in option pricing
- importance of Greek options
- popular and complex option strategies under various market conditions.
key points
Whether the reader is a newcomer to options or an established veteran looking for a fresh take on basic strategy, the straightforward style and colorful scenarios will keep readers engrossed and motivated to learn more.
#7 – rogue options
book review
This important options trading book will teach how traders can make money online by trading options with fine details and clear images that complement the information provided. No financial or technical knowledge is required to implement these techniques and can be done by anyone who wants to make money through online trading.
The author delves into the many featured options strategies for earning money online consistently. Exact details of what each trade does are provided to how it is required to be set up within the trading software. Step-by-step instructions with screenshots are included to make it easy to follow the instruction manual on profitable trading strategies. the author is confident that traders will find success in the options market with an investment of as little as $50, although this is not a guaranteed approach.
key points
The content of this book has been highly appreciated by most readers who are traders and can be implemented in most options strategies under various conditions. It comes with a number of scan settings to use on thinkorswim which is one of the leading trading platforms and can be used for free as part of this top options trading book. thus, you will not only sharpen practical knowledge, but also improvise how the trading platform should be handled.
#8 – trading options at your leisure
by virginia mcullough
book review
This book on options trading is specifically aimed at women, describing and encouraging them to be successful options traders despite having a full-time job or being a full-time homemaker. the main focus is executing trades online and communicating what it takes to know to be a successful trader. offers a step-by-step guide in easy-to-understand language for both beginners and advanced investors.
Although options trading is not a risk-free investment method, for women who have little money available to invest, options trading can be a very lucrative method of earning money.
key points
Clean and neat charts and candlesticks have been regularly displayed, which makes it interesting, especially for beginners, to understand the performance of options. excellent guidance has been offered for buying calls and puts. readers have identified a few other caveats, like making the charts more colorful or including some other strategies that might have made it more interesting, but overall it’s a definite read for someone who wants to explore the market with limited risk. risk appetite risk appetite refers to the amount, rate or percentage of risk that an individual or organization (as determined by the board of directors or management) is willing to accept in exchange for its plan, objectives and innovation.read more .
#9 – the bible of options strategies
by guy cohen
options trading book review
This book on options trading is a hands-on module from start to finish, offering guidance on how flexible and profitable options trading can be. It has easy-to-understand language with simple examples that are easily intersected so that one can find what one needs quickly and seize opportunities even if they are short-lived. all the main areas that are essential to know while indulging in options strategies have been covered by the author.
key points
The author has very successfully explained most of the complex techniques in a fluent manner, making them easier to understand for any trader with even modest options trading experience. As well as offering exquisite value, it is a definitive reference to contemporary options trading. Some of the critical aspects are:
- control more amount of assets for a limited amount of money
- trade with leverage
- trade for a substantial amount of income
- how to get benefits of depleting stocks
- reduction or elimination of risk
- benefits of volatility or protection against a variety of factors
a number of aspects regarding the explanation of the details of options spreadsdetails of options spreadsoptions spreads are strategies used to trade options in the financial market. belong to the same underlying security class. the expiration date and the strike price are different and the difference between the strike prices is the spread position. Read More
#10 – how to make a million dollars trading options
by cameron lancaster
book review
See Also: The Little Golden Books History And Backstory – Simplemost
This book on options trading is a relatively short read, but the author has done an outstanding job of teaching readers how to trade options? how to trade options Options trading refers to a scenario where the trader can buy or sell shares. within a specified period & at a specific rate. You can trade options through brokers, own investments or with the help of standardized platforms. read more easily. The truth about options trading and making money is plain and simple. exposes the secret of options that have been hidden by wall street. highlights the fact that options do not accurately reflect the chances of stocks going up or down, and put/call parity put/call parity put-call parity says that the premium (price) of a call option implies a specific fair price for the corresponding put options, provided that the put options have the same strike price, underlying and expiration, and vice versa. it also shows the three-sided relationship between a call option, a put option, and the underlying security.read more can be exploited.
Important concepts highlighted are:
- options basics
- volatility/put-call parity
- expected value expected value expected value refers to the anticipation of an investment for a future period considering the various probabilities . is evaluated as the product of the probability distribution and the outcomes. read more about options contracts
- risk management and trade sizing
- where and how to generate trades
- additional bonus tips on trading
- reasons options traders are losing money
key points
is an interesting book on options trading, highly recommended by various traders around the world who are new or even experienced in this field. it was known to be controversial as it was emailed to wall street and thus printed to the outside world.
#11 – volatility and option pricing
by sheldon natenberg
options trading book review
This best options trading book has been recognized as one of the best sellers for new professional traders as it enables them to learn the trading strategies and various risk management techniques essential for success in the options markets. offers a comprehensive guide covering a wide range of topics as diverse and exciting as the market itself, including:
- the basics of options theory
- dynamic hedging
- risk analysisrisk analysisrisk analysis refers to the process of identifying, measuring, and mitigating the uncertainties involved in a project, investment, or business. there are two types of risk analysis: quantitative and qualitative risk analysis.read more
- volatility and directional trading strategies
- volatility contracts
- position management that are celebrated.
key points
A full understanding of how theoretical pricing techniques are implemented in practical models in use can be obtained. Traders can also apply the option evaluation principle to create strategies that have the greatest chance of success given the trader’s assessment of market conditions. This options trading book emphasizes the fact that options trading is a science and an art and how you can extract maximum profit from them.
#12 – the complete guide to options trading
by james cordier/michael gross
book review
Making any type of investment has taken a great leap in recent decades. the buy and hold strategy has now been replaced by buy and wait. a wide range of factors can now have a widespread impact on investment performance. an investor should consider all macroeconomic factorsmacroeconomic factorsmacroeconomic factors are those that have a broad impact on the national economy, such as population, income, unemployment, investments, savings, and the rate of inflation, and are monitored by computers highly professional government governed or other economists.read more before committing or growing any type of investment. this guide will take a leaf from the pros and radically change the whole philosophy towards building a strong, high-yielding portfolio.
Step-by-step guidance is provided through the entire process to help you make consistent and high profits, even in choppy market conditions. Some of the important aspects that this best options trading book will focus on are:
- fundamentals of option selling
- option selling as a strategy and its associated risk management
- market analysis and option writing
key points
emphasizes the fact that selling options is less stressful and forgivable than management and traditional trading strategies. not much reference has been made to Greeks or complex mathematical calculations, making it more practical and less theoretical. It will also briefly mention seasonality and the use of fundamentals for commodity futures and others. selling premium is a common strategy to get a niche in the market as it puts probability on the side of the trader.
#13 – greek options trading
by dan passarelli/william brodsky
book review
The options market in general is very dynamic and challenging, and traders must have knowledge of Greek options for option pricing and trade execution regardless of market conditions. These Greek options include:
- delta
- gammagammagamma of an option is the range of change in the delta of an option in response to a unit change in the price of the underlying asset. gamma can be expressed as the second derivative of the option premium with respect to the price of the underlying asset. read more
- theta
- vega
- rhorhorho refers to the metric used to assess the sensitivity of an option to changes in the risk-free interest rate . shows the amount of money an option would gain or lose if the risk-free interest rate changes by 1%.read more
key points
These tools are kept in perspective for aspiring and professional traders alike and offer an explanation in a simple and accessible style. It will skillfully highlight how trading strategies can be used to profit from things like volatility, time decay, or interest rate changes. it also makes use of new charts and examples with discussions of how the proper application of these Greeks can lead to price and trading accuracy while also providing alerts on a variety of other opportunities.
All of these Greek options are interdependent with each other and play a vital role in determining the price of an option. In a scenario of market crisis, it is these Greek options that must be taken advantage of and, sometimes, it is the commercial pulse that can decide the future course of the investment. also offers investment advice through spreads, put-call parity, synthetic options, trading volatility, and advanced options trading.
In addition, it contains pertinent new information on how accurate pricing can be a driving force behind realized profits.
recommended articles
here is the options trading book guide. here we provide the list of top 10 options trading books & a preview of what those books review & key takeaways. you can refer to the following books for more information –
- financial education books
- forex trading books
- econometrics books
- investment books
disclosure for amazon associates
wallstreetmojo participates in the amazon services llc associates program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com
See Also: Civil War Books and Authors