1. Trading Options For Dummies by Joe Duarte

6. The Options Playbook by Brian Overby

 

As requested by some of you, here you have my list of the best options trading books. This is a good way to start learning options trading. Especially its basics. But, if you want to reduce your learning curve time, it is better to join a trading community where you can interact with other traders and clarify any doubts or learn from real trading. Or, if you are more confident to learn proven options strategies and how to properly trade options in a real world, you cna surf my website.

Fortunately for options traders, there are many fantastic options trading books to choose from which I can suggest and help you become a more knowledgeable and well-researched investor.

While there are many options books out there dedicated to options trading, we've narrowed down the list to six books that we think you'll find useful over the next few years. These aren't just books that cover options trading; they're books that teach you how to use options trading effectively to build a diversified portfolio and potentially earn money with trading. But, options trading needs practice and research to master it and turn yourself in a consistent trader.

These are books that help you understand what options are and how they work. And they're books that show you how to make money from options trading.

Below you have my list of the top 6 books on options trading. There would be others, but for me, these ones are key to having a look at. You can get them at your preferred online library. These books will help you to consolidate your theoretical knowledge and deliver key concepts. Do not give you insights on how to trade profitably.

But, as I already told you, to learn options trading in a profitable way it is better to learn proven options strategies that "standard" options strategies will not teach you. The market volatility and direcction is unpredictable and you need to understand how to react (or make adjustments) to manage risk. And this is not taught on books...

Best for: Beginners 

 

Everyone has to start somewhere, and, for individuals interested in options trading, Trading Options for Dummies is the perfect book to learn the basic principles and strategies of the practice.

Options are a great way to add diversity to a portfolio, especially during volatile times like now. But learning about options trading takes some effort. In fact, it might take you a while to wrap your head around what makes options tick. So this book guide to help you understand options trading, including what they are, why people use them, and how to make money off of them. 

 

This popular investing guide is on the list of best books on options trading because its author, Joe Duarte, gives the beginner options investors a step-by -step guide to the options-trading process from start to finish, regardless of your experience levels or investment goals. Duarte explains clearly what options are and how they work, along with important information about risk management, hedging strategies, and the many ways to use options to improve returns. He also includes a chapter on how to find great options trades and how to avoid common mistakes.

The book's approachable style makes it ideal for beginners and seasoned traders alike. You'll learn everything you need to know. It covers all of the basics of options trading, including:

. different types of options

. how to choose the right option for your investment objective

. how to use technical analysis to execute various option strategies successfully

. How to understand buying and selling options

. Determine and manage your risk

. Capitalize on stock consolidation movements

. Improve the value of your portfolio

 

This book is perfect for traders looking to broaden their retirement portfolio and investors who want to earn extra money with shorter-term positions.

This easy-to-understand guide is a great way to introduce yourself to the world of options trading and learn useful tips and techniques to make worthwhile investments.  Even if you’re an experienced trader you can pick up tips on using options with indexes, equities and ETFs. One of the top books on options trading.

Joe Duarte is a former money manager, active private investor, and financial writer who uses his experience and knowledge to provide first-time options traders with a wealth of information to help them become more successful. 

2. Options as a Strategic Investment by Lawrence G. McMillan

 Best for: to deepen options knowledge

 

In Options as a Strategic Investment, professional trader and author Lawrence G. McMillan shows how you can improve the earnings potential of your portfolio while minimizing risk.

This book is widely considered the Bible of options trading. In it, he covers everything you could ever want to know about options trading, including basic principles, strategy, and tax law. His book contains over 1000 pages of information on specific options strategies, market conditions in which they are most effective, and why they work. 

The Fifth Edition of Options as a Strategic Investment continues to provide the best advice on how to trade options effectively. With over 30 years experience trading options, Larry McMillan has helped thousands of investors profit from the volatility of options markets. In this edition of his highly successful book, he explains why options are such powerful tools for making money, and provides readers with a comprehensive understanding of option contracts and strategies. He also offers a number of tried and true methods for maximizing profits and minimizing losses.

The book dives deep into using indexes as a hedge and explains the differences between index options and stock options. It even includes detailed advice on trading index puts, calls, spreads, straddles, and covered calls. This book provides novice and experienced investors with strong foundations in the properties and advantages of listed and non-equity options. With detailed explanations of techniques, buy and sell strategies, and in-depth analysis, this guide is sure to help you become a more successful investor.

Written for people with some familiarity with options, the author goes into detail of how the strategies are used in various situations, as well as why. The 5th edition was updated in 2012 and provides additional study guides and quizzes.

3. Option Volatility and Pricing by Sheldon Natenberg

Best for: experienced option traders

 

At financial firms around the world, Option Volatility and Pricing by Sheldon Natenberg is used to educate new traders on the trading and risk management strategies necessary in order to become a successful options trader. This book is for the more advanced trader and is a must when you increase your options knowledge. One of the most recommended books on options trading.

Sheldon Natenberg is one of today’s leading experts on options trading. He has written numerous articles on the subject, including several chapters in Options Trading Made Easy, published by Wiley. Sheldon Natenberg's book Option Volatility & Pricing is regarded as one of the best resources on the topic.

In this second edition, Natenberg continues to provide readers with clear explanations of how options work and why they are traded. He also includes many real-world examples of how traders successfully apply option strategies.

The book begins with basic definitions and principles, such as the Black–Scholes model, stochastic processes, and the binomial tree. Then it moves into more complex topics, such as implied volatility surfaces and option Greeks. Finally, Natenberg discusses more advanced topics, such as Monte Carlo simulation and the Hull–White model.

This book is ideal for experienced traders that wan to deepen options related concepts. It explains every concept clearly and concisely, providing plenty of practical applications. It also contains useful charts and tables throughout, making it easy to reference.

In this book, Natenberg applies his incredible expertise in order to help new and advanced investors understand a variety of options trading principles, such as:

Option theory foundations
Risk analysis
Volatility contracts
Stock index futures and options
Option pricing models
In addition to the many other topics discussed in this book, these principles will help you become the knowledgeable options trader that you aspire to be. 

While the book’s most recent publication was in 1994, the book still applies to today’s market. The book is geared more towards experienced options traders but is still written in a way that even novices can gain some insights.

4. Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits by Dan Passarelli

 Best for: Intermediate to advanced traders

Though it’s not always necessary to understand option greeks, doing so gives traders a leg up in their analysis and investments. The option greeks – gamma, delta, theta, vega, and rho – are the techniques for executing trades and valuing options that you need in order to keep up with the always-changing options market.

In Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits, Dan Passarelli, an experienced options trader, explains these techniques in simple terms and offers valuable insights into the options market. This book is regarded by many as an essential guide for both experienced and aspiring traders due to its ability to effectively explain how the option greeks can be used to facilitate profitable trading strategies.

It offers a clear explanation of Greek trading concepts in a straightforward and accessible way. It will skilfully highlight how trading strategies can be used for gaining profits from aspects such as Volatility, Time Decay, or changes in the rate of interest. It uses new charts and examples with discussions on the proper application of these Greek factors to help traders accurately price and trade their options while also providing alerts to a range of different opportunities.

All of these option greeks are interdependent on one another and play a vital role when determining the price of an options. When markets are volatile, it is important to take advantage of option Greeks when they're available. At times, it is the volatility that can determine the direction of an investment. It also provides advice on investments to be done through spreads, put- call parity, synthetic options, option trading, and advanced options trading techniques.

Additionally, it holds pertinent new information on how accuracy in pricing can be a driving force of the profits earned.

Because the book delves a bit deeper into the technical aspects of options pricing, veteran traders will get more out of the material than novices.

5. The Option Trader’s Hedge Fund by Mark Sebastian, Dennis A. Chen

Best for: Intermediate to advanced traders

Offering an excellent business plan for options trading, The Option Trader’s Hedge Fund, written by Mark Sebastian and Dennis A. Chen, uses real-world examples to demonstrate how you can run your own personal hedge fund. This fantastic step-by-step guide shows you how you can set up a short option investment portfolio.

If you are interested in learning about options trading and want to make money while doing it, this book is for you. In this book, authors teach readers how to build a successful hedge fund. They describe how to find profitable opportunities, manage risk, and provide advice to clients. This book covers everything from how to set up a hedge fund to how to choose a broker, what type of investor to target, and how to structure fees. Readers learn how to trade stocks, futures contracts, and options.

The presentation of this book’s core ideas makes it easy for beginner traders to understand the key principles of trading options. Their practical experiences as a hedge fund manager and options trading coach bring real-world lessons that supplement the practical steps to put the material in some context. 

What’s interesting is this book covers more than just options trading, but how to set up business trading options. 

6. The Options Playbook by Brian Overby

Best for: Beginners to intermediate traders

In his career as an options trading specialist, Brian Overby has worked with influential companies such as Charles Schwab, the Chicago Board Options Exchange, and Knight Trading Group.

For investors who already understand the stock market, but want to further their understanding of the options market, Brian Overby’s “The Options PlayBook” lays out the forty most popular options strategies—plus a step-by-steps approach to executing each one. From buying covered calls, selling naked puts or Iron Condor, Overby covers everything from the basics of option trading to pricing variables, or Greek, even time decay as its effect on implied volatility. He also goes into detail about how to use the tools at his disposal to optimize returns in this comprehensive guide. 

This book covers a wide array of topics related to options from simple strategies to the more complex ones. It is intended to help readers understand options better, learn how to trade options profitably, and prevent common mistakes. The book contains clear explanations of option terminology, basic concepts, and important rules for successful options trading. In addition, there are chapters covering risk management, hedging, and technical analysis for several option trading strategy discussed.

In The Options Playbook, Overby has taken his immense experience and translated it into a straightforward, accessible explanation of all aspects of options trading. Throughout this book, you will learn to:

Execute trades at the right time
Break-even at expiration
Understand how market conditions affect an option’s price
Understand how time decay and implied volatility impact your trade
Recover from unexpected conditions

The latest edition of this book includes over 40 options strategies in order to help beginners enter the options trading market with their best foot forward. A bible as a book on options trading.