8 Best Options Trading Books
The trading world is full of different types of people. Some people fear options; some use these instruments for portfolio diversification and hedging, while some use these to trade in financial assets and earn profits.
However, trading options are neither too easy nor too difficult. Basically, it requires an understanding of basics, market knowledge, emotional balance, and analytical and risk management skills.
Reading books about options trading is the best way to understand the concept of these complex financial derivatives. Here is the list of the best books on options trading that we have prepared after detailed research and analysis:
Options Trading Crash Course: The Ultimate Guide to Beginners
Author: Frank Richmond.
Well, if you are new to the options trading world and want to start soon, then this book is for you. It starts with the basics and takes you to the advanced level.
It is an indept study of options concepts, terminologies, examples, and strategies. The best part about this book is the author has tried to include answers to all the general questions
that arise in a trader’s mind before starting trading options.
This book got the first place on our list of best books on options trading for beginners. The language of the book is beginner-friendly, and complex topics are explained in the easiest manner.
Options as a Strategic Investment: The Bible of Options Trading
Author: Lawrence McMillan
This book is widely known as the bible for options traders and is actually amongst the best options trading books. It is a collection of over 1000 pages where the author has tried to cover almost every topic for trading options.
This book can be suitable for intermediate-level traders who have a basic understanding and want to learn advanced trading approaches.
You can access different trading strategies and ways to make them more profitable with proper risk management. Also, the author has covered complex topics like tax policy, hedging, etc, to help option traders.
The Options Playbook: Best options strategy books
Author: Brain Overby
Traders who are looking for the right strategy to start their career should read this book once. It teaches you the effective approach for strategy formulation and implementation.
This book contains almost 40 trading strategies with an indept explanation of every strategy. In addition, the author has included real-life examples, case studies, and diagrams to help you choose the right strategy.
The best part about this options book is the author has divided it into segments like history, terminologies, tips, mistakes, etc. So you can learn according to your requirements.
A quick glance
Options Trading Crash Course by Frank Richmond
Options as a Strategic Investment is regarded as the Bible of Options Trading.
- Options Trading Crash Course by Frank Richmond
- Options as a Strategic Investment
- The Options Playbook
- Option Volatility and Pricing
- Get Rich with Options
- Fundamentals of Futures and Options Markets
- How to Make a Million Dollars Trading Options
- Options Trading for Dummies
- To Build Your Foundation
- For Strategy Development
- For the Right mindset & psychology
- Learn from the Past
Option Volatility and Pricing: Best to Understand Options & Volatility
Author: Sheldon Natenberg
Volatility plays a crucial role in trading financial instruments, and when you go for options, it becomes more critical. In this options book, the author has done an indept study of the relationship between the market conditions and the options pricing.
With the help of examples, strategies, and fundamentals, the author shows the impact of market volatility on trading options and how to trade considering it. In addition, the author has provided hedging guidance, risk management tips, and advanced techniques to help the reader.
Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor
Author: Lee Lowell
As the name suggests, the book is based on the four winning strategies for trading call and put options. The strategies covered in this options book include Buying Deep-in-the-money call options, selling naked puts, selling credit spread options, and selling covered calls.
With the name, you may interpret the book as a guide to get rich quicker by trading options. However, it is much more than that. The author has conducted a detailed study of these four winning strategies and provided traders with real-life examples.
Also, he has included the strengths and weaknesses of all strategies, as well as expert tips on how to use them efficiently. Consider reading it if you want to trade in options using any of the four strategies.
Fundamentals of Futures and Options Markets: Guide to Options and Future Trading
Author: John Hull
It is amongst the best options trading books for traders or investors who want to understand futures, options, or any other financial derivatives. The author has covered every topic from basic to advanced level and provides you with a detailed study of these two markets.
The book deals with complex topics like swap charges, interest rates, and other things that you need to consider for trading derivatives. In addition, you can access mathematical approaches, risk management techniques, and strategies for trading options and futures.
How to Make a Million Dollars Trading Options: Best to Learn Trading Options
Author: Cameron Lancaster
Traders who are done with the learning part and theoretical aspect of options trading and want to know how to make a significant amount in the options market should read this book.
Under this, the author has stated the ways to trade options and make a profit in the market. The best part about this book is that it is short, so the information is specific and clear.
In addition, the books include topics like options trading basics, risk management, trade sizing, tips, reasons for failure, etc, which help traders maximize their returns and minimize losses.
Options Trading for Dummies: Guide to Technical Analysis in Options Trading
Author – Joe Duarte
Options Trading for Dummies is another popular book for beginners. The author uses simple and easy tactics to make people understand the complex trading derivatives.
Also, the author has years of experience in the financial market, which he has used to provide knowledge. In the book, the traders included the elements of technical analysis like chart patterns, historical price patterns, statistics, and indicators.
Technical analysis plays a crucial role in options trading, and the best part is that the author has combined his study with this analysis. So, while learning options trading, a trader can also gain knowledge of technical analysis.
What Is The Need For Reading Option Books?
There are different kinds of traders in the market. Some find books really helpful in the trading journey, while some find reading books useless.
However, if you think reading books is a waste of time, then it is a big mistake. This thought can eliminate the difference between a gambler and a trader. Here are reasons why reading options trading books is a must:
Build your Foundation
Like any other financial derivative, trading options also involve a significant amount of risk. The best weapon to deal with trading risk is knowledge.
Knowledge comes from books. It builds a strong foundation that leads to positive trade outcomes and gives you the ability to deal with negative outcomes.
Strategy Development
Options strategy books enable traders to read about a variety of trade strategies, with their strengths and weaknesses, and how to use them effectively.
They ultimately teach traders the art of using strategies and help them in selecting the best according to their requirements. Strategies are the keys to success in options trading, and one can formulate a solid trade plan only when he understands different strategies.
Right mindset & psychology
Books are not only helpful in gaining knowledge of the financial markets, but they also help traders in developing a positive mindset.
Knowledge comes from books, and confidence comes from knowledge. These educational resources enable traders to manage their emotions and embrace consistency in trading.
Learn from the Past
Books provide traders with case studies and real-life examples. Mistakes are great teachers; one can learn from one’s own or others’ mistakes.
These options books contain several success and failure stories of traders and the reasons behind their success or failure. So traders can avoid the mistakes and embrace the strategies for a profitable start.
Wrapping Up
Options Trading may result in significant profit or loss depending upon the approach. Also, the current buzz about options trading has given birth to excitement, fears, and several questions regarding the derivatives.
That’s where the above best books on options trading can help you. One can get answers to all the questions in these books. In addition, these books will bust the myths regarding the method.
Trading options is a great way to make money in the market. However, it is also true that options are not for every trader. It requires impeccable market knowledge, analytical skills, effective strategy, and, most importantly, the right psychology.
