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Best Options Trading Books: 9 Titles From First Steps to Volatility

Nine options trading books with their editions checked, from beginner guides to volatility, the Greeks and strategy references, and the reader each one suits.

· Founder of PatternsWizard
Checked 7 min read
Options as a Strategic Inv…1980Option Volatility and Pr…1988The Options Playbook2007Trading Options Greeks2008The Option Trader's Hedg…2012Options Trading Crash…2017and 3 more9 books, 1980 to 2017
On this page
  1. Which book fits which trader
  2. More trading book lists
  3. Frequently asked questions

If you are new to options, start with Brian Overby's The Options Playbook or Michael Sincere's Understanding Options; to understand what moves an option's price, read Sheldon Natenberg's Option Volatility and Pricing, then Dan Passarelli's Trading Options Greeks; and for a reference on strategies, Lawrence G. McMillan's Options as a Strategic Investment. We checked each edition in a book catalog or on the publisher's page between October 31 and November 2, 2026 and did not reread the books, so the order is not a ranking.

Nine options trading books

  • Option Volatility and Pricing

    Sheldon Natenberg · In catalogs by 1988

    Edition checked
    Second edition, McGraw-Hill, 2014, 592 pages
    Who it is for
    Traders who want to understand how volatility drives option prices
    About the book
    Subtitled Advanced Trading Strategies and Techniques in its second edition; the first appeared from Probus in 1988 as Option Volatility and Pricing Strategies.

    Checked , openlibrary.orgSee on Amazon

  • Options as a Strategic Investment

    Lawrence G. McMillan · In catalogs by 1980

    Edition checked
    Fifth edition, Prentice Hall Press, 2012, 1,072 pages
    Who it is for
    Readers who want one large reference on option strategies
    About the book
    First published by the New York Institute of Finance in 1980 and now in a fifth edition: a book to consult rather than read in one go.

    Checked , openlibrary.orgSee on Amazon

  • The Option Trader's Hedge Fund

    Dennis A. Chen and Mark Sebastian · In catalogs by 2012

    Edition checked
    FT Press, 2012
    Who it is for
    Option sellers who want to run their trading like a business
    About the book
    Subtitled A Business Framework for Trading Equity and Index Options; its publisher describes a business framework modeled on an insurance company.

    Checked , informit.comSee on Amazon

  • Trading Options Greeks

    Dan Passarelli · In catalogs by 2008

    Edition checked
    Bloomberg Press, 2012
    Who it is for
    Traders who want to understand the Greeks before they trade
    About the book
    Subtitled How Time, Volatility, and Other Pricing Factors Drive Profits: a book about the sensitivities that move an option's price.

    Checked , openlibrary.orgSee on Amazon

  • The Options Playbook

    Brian Overby · In catalogs by 2007

    Edition checked
    Expanded second edition, Options Playbook, Inc, 2024
    Who it is for
    Beginners who want a play-by-play strategy guide
    About the book
    Its Google Books description counts more than 40 strategies, set out play by play, with a Rookie's Corner for first-time traders, and calls this the expanded 2nd edition, with 10 new plays. Amazon and Google Books differ on its page count. TradeKing's first edition of 2007 ran to 101 pages.

    Checked , books.google.comSee on Amazon

  • Options Trading Crash Course

    Frank Richmond · In catalogs by 2017

    Edition checked
    eBookIt, 2020, 112 pages
    Who it is for
    Readers who want a very short first look at options
    About the book
    A 112-page beginner's book; its subtitle promises to make money in 7 days or less, a promise we cannot check and do not endorse.

    Checked , openlibrary.orgSee on Amazon

  • Understanding Options

    Michael Sincere · In catalogs by 2006

    Edition checked
    Second edition, McGraw-Hill, 2014, 320 pages
    Who it is for
    Beginners who want to learn what options are and how they work
    About the book
    A 320-page introduction from McGraw-Hill, written for the novice according to its Google Books description. The second edition dates from 2014; it goes back at least to 2006.

    Checked , books.google.comSee on Amazon

  • Fundamentals of Futures and Options Markets

    John C. Hull · In catalogs by 2001

    Edition checked
    Ninth edition, Pearson, 2016, 624 pages
    Who it is for
    Students and readers who want the textbook treatment of pricing
    About the book
    A Pearson textbook that covers futures as well as options. The year shown is that of the fourth edition, from 2001; the first three editions are older, and the catalogs we read do not date them.

    Checked , openlibrary.orgSee on Amazon

  • The Bible of Options Strategies

    Guy Cohen · In catalogs by 2005

    Edition checked
    Second edition, FT Press, 2015
    Who it is for
    Traders who want to look up a strategy by name
    About the book
    Subtitled The Definitive Guide for Practical Trading Strategies: a reference on strategies, in a second edition since 2015.

    Checked , pearson.comSee on Amazon

Editions checked in Open Library, Google Books and on the publishers' pages between October 31 and November 2, 2026. The year comes from those catalogs: the book goes back at least that far, and the first printing may be older. We did not reread the books; Amazon links may open another edition.

Which book fits which trader

You are starting from zero

The Options Playbook by Brian Overby came out from TradeKing in 2007 in 101 pages, grew to 158 pages in an expanded second edition in 2009, and has been published since 2024 by Options Playbook, Inc; Amazon lists 313 pages for that printing and Google Books 293. Michael Sincere's Understanding Options, from McGraw-Hill, reached its second edition in 2014. Frank Richmond's Options Trading Crash Course is a short start, at 112 pages; ignore the promise of its subtitle.

You want to understand pricing and volatility

Option Volatility and Pricing by Sheldon Natenberg first appeared in 1988; the second edition, subtitled Advanced Trading Strategies and Techniques, is 592 pages from McGraw-Hill in 2014; Amazon sells that second edition as a Kindle edition. Trading Options Greeks by Dan Passarelli, subtitled How Time, Volatility, and Other Pricing Factors Drive Profits, deals with the Greeks: the sensitivities of an option's price to the underlying, to time and to volatility. The chart below shows three of them for one hypothetical call, computed with the Black-Scholes model; both books are about reading sensitivities like these.

Delta, theta and vega of a 100 call at 60, 30 and 7 days to expiration

Deltachange in option price per 1.00 move in the underlying0.00.51.080100120Underlying priceThetachange in option price per calendar day−0.10−0.050.0080100120Underlying priceVegachange in option price per 1 point of volatility0.000.050.100.1580100120Underlying price
  • 60 days to expiration
  • 30 days to expiration
  • 7 days to expiration
  • Strike (K)
Hypothetical example: long call, strike 100.00, volatility 25%, risk-free rate 4%, no dividend yield, 60, 30 and 7 days to expiration. Black-Scholes values per share, not market prices. Theta is per calendar day (annual theta divided by 365); vega is per 1 percentage point of volatility.Close to expiration, theta grows and vega shrinks for an at-the-money option.

For the academic version of the same subject, John C. Hull's Fundamentals of Futures and Options Markets is a Pearson textbook now in its ninth edition.

You want a reference on strategies

Options as a Strategic Investment by Lawrence G. McMillan, first published in 1980, is 1,072 pages in its fifth edition from 2012: a book to consult rather than read in one go. Guy Cohen's The Bible of Options Strategies, subtitled The Definitive Guide for Practical Trading Strategies, is the other strategy reference; its second edition is from 2015.

You want to sell options as a business

The Option Trader's Hedge Fund by Dennis A. Chen and Mark Sebastian, subtitled A Business Framework for Trading Equity and Index Options, came out from FT Press in 2012. Its publisher describes a business framework for selling options modeled on an insurance company. The comparison holds in the payoff of a sold put: the seller keeps a small premium when the stock holds up and pays out, like an insurer, when it falls well below the strike.

A sold 95 put: a capped gain against a large possible loss

−15−10−50ProfitLossK 95Opened at 10093.5080859095100105110Underlying price at expiration
Net premium1.50 received (net credit)
Maximum gain1.50, at 95.00 and above
Maximum loss93.50, at 0.00 (the underlying falls to zero)
Break-even price93.50
  • Profit or loss at expiration
  • Gain
  • Loss
  • Strike (K)
  • Break-even
Hypothetical example: short 1 put, strike 95.00, premium 1.50; underlying at 100.00 when the position is opened. Profit and loss at expiration, before commissions and taxes. Values per share.The seller keeps the whole premium above 95 and loses money below 93.50, more with every dollar the stock falls.

You prefer a video course

New Trader U lists Options 101 as an eCourse by Steve Burns. We have not taken it. It is an affiliate link, like the Amazon links on this page.

More trading book lists

Hull's book is also the bridge to our futures trading books. If you trade options on intraday moves, see the day trading books; for the chart reading behind entries, the technical analysis books. All our book lists sit under trading reviews.

The store links on this page go to Amazon; see also the Amazon Prime page.

Frequently asked questions

What is the best book for beginners learning options trading?

Brian Overby's The Options Playbook, now published by Options Playbook, Inc, or Michael Sincere's Understanding Options, a 320-page introduction in its second edition.

How difficult is option trading?

Harder than buying shares: an option's price depends on the underlying, on time and on volatility. FINRA notes that trading options requires your broker's approval and that their leverage can come with the risk of significant losses.

Which options book explains volatility?

Sheldon Natenberg's Option Volatility and Pricing, first published in 1988 and in a second edition since 2014.

Is there an options textbook?

John C. Hull's Fundamentals of Futures and Options Markets, a Pearson textbook in its ninth edition, covers futures as well as options.

Sources

  1. FINRA, Options
  2. FT Press, The Option Trader's Hedge Fund
  3. Pearson, Fundamentals of Futures and Options Markets
  4. Open Library, Option Volatility and Pricing Strategies, Probus, 1988
  5. Open Library, Options as a Strategic Investment, New York Institute of Finance, 1980
  6. Open Library, Options as a Strategic Investment, first publish year
  7. Open Library, Trading Options Greeks, work record
  8. Open Library, The Options Playbook, Expanded 2nd Edition
  9. Open Library, Options Trading Crash Course, 2017
  10. Open Library, Understanding Options, 2006
  11. Open Library, Fundamentals of Futures and Options Markets, 4th Edition, 2001
  12. Open Library, The Bible of Options Strategies, 2005
  13. Google Books, Understanding Options 2E, 2014
  14. Google Books, The Options Playbook, 2024
  15. Open Library, The Options Playbook, first edition, 2007
, Founder of PatternsWizard

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