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9 Best Options Trading Books Of All Time

Option Volatility and Pricing 

Option Volatility and Pricing by Sheldon Natenberg is one of the best books on options trading. The book highlights current developments and trends in the field of options. Basic and advanced options trading strategies, volatility, pricing models, and risk management strategies are the main topics of this book. Natenberg’s ideas are based on his experience as a professional trader. He describes all the key concepts and ideas that are crucial for successful options trading. Moreover, he also describes the fundamentals of options theory and how this theory is useful in the identification and exploitation of options trading opportunities. Readers can also find different options trading strategies and choose anyone that best suits their individual preferences and risk tolerance. Overall, this book is a complete package for all options traders. 

Options as a Strategic Investment 

Options as a Strategic Investment by Lawrence G. Mcmillon is a thorough and qualitative book on options and options strategies. The book covers from very basic to advance options concepts. Mcmillon also describes how options trading works and why you need to consider options trading before delving into more advanced concepts like options trading strategies and emerging trends in the market that directly affect options trading. Readers also learn about practical options trading strategies that can minimize risks and maximize profit potential. Describing options as a hedge is a hallmark of this book. Index options trading, futures options trading, and how to measure market volatility are among other main concepts discussed in this remarkable book. As a verdict, this book surely deserves to be among the list of best options trading books.

The Option Trader’s Hedge Fund 

The Option Trader’s Hedge Fund by Dennis A. Chen and Mark Sebastian is another one of the best options trading books. This book is a combined effort of a hedge fund manager and an option trading coach. They embarked on this endeavor to teach readers how to be successful options traders. They explain how to earn a steady and consistent income through selling options, managing options trades, and option portfolios. Authors convey their ideas through real-world examples and describe how to manage your own hedge fund with options at the core of it. The book also demonstrates how to apply a basic framework and fundamental business model plus principles to make consistent profits just like insurance companies. The authors also propose a complete operations manual to set up your own business. In short, this book is a good pick for beginners as well as more advanced options traders. 

Trading Options Greeks

Trading Options Greeks by Dan Passarelli proposes a new method for options trading and valuation. The book begins with basic options concepts and gradually advances to more complex concepts. The author emphasizes how more accurate prices leads to profits. The book explains how traders focus on different concepts and ideas but ignore “greeks”. Greeks, in a trading context, mean different techniques that are employed to evaluate the position of an option. It also helps to determine how sensitive an option is to changes in prices. In more simple words, greeks are the five factors that affect the price of an option. If you want to learn the use of greeks in your options trading, this book is the solution. There isn’t a slight doubt about the inclusion of this book in the list of the best books on options trading. 

The Options Playbook 

The Options Playbook by Brian Overby explains options trading and teaches its readers various option plays. This book explains over thirty most popular options trading strategies in a very simple and lucid play by play style. The book emphasizes that there are myriads of ways to trade options and this book is a torchbearer for those who want a diversified trading approach. Common mistakes made by novice options traders, basic concepts, implied volatility, and a basic description of greeks are among other topics covered in the book. The book also contains valuable tips for beginners and advanced options traders. In short, this book is among the best books on options trading that will surely enhance your options trading knowledge. 

Options Trading Crash Course 

Options Trading Crash Course by Frank Richmond is one of the best options trading books. This book has all the potential to teach you options trading right from scratch. This book guides you step by step about options, options trading, and making profits through options trading. The book explains different types of options trades and how to gain from them. Different option trading strategies to make the best use of your investment capital is another well-explained concept in the book. Moreover, the author also sheds light on the identification of market patterns, investment opportunities, and how to capitalize on them. Although the book is intended for beginners but beginners feel like experts after reading this remarkable classic. This book has deservedly earned its spot among the best books on options trading. 

Understanding Options 

Understanding Options by Michael Sincere is yet another option investing bestseller. The latest edition of this book conveys everything that you need to get started in options investing journey. The book covers from very basic to advanced options concepts. It describes what options are, how they work, their pros and cons, and their relationship to stocks. Sincere also teaches how to gain leverage from options, generate extra profits, and how to protect options investment from adverse price fluctuations. It also covers new concepts like ETFs, the Greeks, credit and debit spreads, charts, etc. In fact, this book has it all to make options trading as easy as breathing. This accessible and easy to read options book surely deserves to be called one of the best books on options trading. 

Fundamentals of Futures and Options Market 

This remarkable book by John Hull is also one of the best options trading books. Hull has served several popular investment banking firms as a consultant. He was regarded as an authority on futures, options, derivatives, and risk management. So, his book is based on his knowledge and real-world experiences. The book offers a lot to make futures and options trading easy. Apart from futures and options, Hull’s book also contains valuable information on derivatives, swaps, and other instruments. It also describes strategies to estimate the time-value of options. Moreover, the book is written in a plain, lucid, and direct style that makes this book more enticing and engaging. 

The Bible of Options Strategies 

The Bible of Options Strategies by Guy Cohen offers a lot to simplify the complexities associated with options. Cohen used an organized approach in his book to describe effective strategies for options trading. The book covers almost all types of option trading strategies ranging from very basic and income strategies to volatility leverage and synthetic strategies. Cohen also describes how and why those strategies work and when is it appropriate to use those strategies. Explanation of more than fifty option trade types is another valuable part of the book. Moreover, the author also sheds light on how to use options and gain maximum profit from them. As a verdict, this book by an options expert like Cohen is a remarkable book that gets easily into the list of best options trading books. 

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