This is the list of my favorite Options Trading books:
The Rookie’s Guide to Options by Mark D. Wolfinger
Learn to use options from veteran option trader Mark D. Wolfinger, who spent more than 20 years on the floor of the Chicago Board Options Exchange (CBOE). This was one of my first books on Options Trading. I consider Mark my mentor, and this book is still a must read.
Mark’s writing style is sensible, easy to understand, obsessively objective and thought provoking. He has a unique way of presenting obvious but frightfully neglected facts such as an admission that, he personally; does not possess the “skills” required to determine in advance where the market is going.
Getting Started in Options by Michael C Thomsett
An easy-to-read and updated guide to the dynamic world of options investing. This book is a good introduction to trading options directed primarily toward the novice trader. In non-technical, easy-to-follow terms, this accessible guide thoroughly demystifies the options markets, distinguishes the imagined risks from the real ones, and arms investors with the facts they need to make more informed decisions.
Options as a Strategic Investment by Lawrence G. McMillan
This guide is one of the most well-known and trusted books on options trading. This updated version of McMillan’s bestselling book contains all the essential information on options trading that you need to know to make intelligent investment decisions with confidence and success. A best-selling guide gives serious investors hundreds of market-tested strategies to maximize the earnings potential of their portfolio while reducing risk.
Profiting with Iron Condor Options by Michael Benklifa
In a straightforward approach, Hanania Benklifa provides readers the practical knowledge needed to trade options conservatively. The objectives are simple: make 2%-4% a month staying in the market as little as possible. A must read for all Iron Condor traders.
Options Made Easy by Guy Cohen
This book teaches all the essentials with real-life examples and crystal-clear explanations. No complicated math or confusing jargon: Learn visually with easy-to-understand pictures.
The Bible of Options Strategies By Guy Cohen
This is, quite simply, the most comprehensive, up-to-date, and usable guide to modern options trading strategies. Renowned options author and mentor Guy Cohen has brought together authoritative knowledge about every popular options strategy, for every type of trader and market environment.
Cohen explains today’s 58 most valuable strategies, helping you consistently choose the right strategy and execute it effectively. You’ll learn each strategy’s goal, the market outlook and volatility factors that make it appropriate, its potential risks and rewards, and how proficient you should be to use it.
Get Rich with Options by Lee Lowell
Filled with in-depth insight and expert advice, this reliable resource provides you with the knowledge and strategies needed to achieve optimal results within the options market. It quickly covers the basics before moving on to the four options trading strategies that have helped Lowell profit in this arena time and again: buying deep-in-the-money call options, selling naked put options, selling option credit spreads, and selling covered calls.
Trading Option Greeks by Dan Passrelli
To truly master options trading, one must cultivate a robust understanding of the “Greeks”. Passarelli’s book explains the impact that each of these factors has on option values, and presents various option trading strategies that seek to profit from changes in any or all of the “Greeks.” This lets traders accurately evaluate option pricing and identify profit opportunities.
This is one of the best options trading books for traders looking to not only understand what the options Greeks are — but also how to use them to your advantage.
The Volatility Edge in Options Trading by Jeff Augen
This is not just another book about options trading. The author shares a plethora of knowledge based on 20 years of trading experience and study of the financial markets. Jeff explains the myriad of complexities about options in a manner that is insightful and easy to understand. Given the growth in the options and derivatives markets over the past five years, this book is required reading for any serious investor or anyone in the financial service industries. — MICHAELP. O’HARE
One of the strategies described in the book is called “Exploiting Earnings – Associated Rising Volatility”. I started implementing this strategy in my account, trading straddles and strangles on stocks before earnings. Those strategies became the cornerstone of SteadyOptions.
Option Volatility & Pricing by Sheldon Natenberg
In this options trading book, Natenberg covers everything from options trading basics to more advanced concepts like volatility and option pricing. This book does an excellent job of explaining the foundation of options theory and options trading concepts. It also provides a lot of practical advice, especially regarding risk management techniques. Overall, this book is perfect for those who want to deepen their understanding of the ins and outs of options trading.
Conclusion
90% of retail traders lose money in the stock market because they give up too quickly. Success in trading requires long term commitment, determination and discipline. It’s a journey, and hopefully those books can increase your chances to succeed in this journey.
