Some of the most successful options traders can tell you that they learned options trading by doing proper research and reading a tonne of industry literature. While this is a great way to harness information in the digital age, you only get random bits and pieces of the puzzle.
The cool part about harnessing information on the internet is that you can get information on just about any topic. Anyone can take their time to read a 600-page post on options trading online.
It’s just that there is so much more to it. You don’t get the big picture from reading a few articles here and there. You need to learn a proper strategy and put it into practice. That’s why books come in handy.
The best way to learn anything new comprehensively is to read a great book on the topic. Books are naturally designed to give you a big picture of any subject. In addition to giving you comprehensive information on a subject, books are designed in a learning format.
A great book on options trading ensures you learn the subject in the right order. The right book starts with an overview of options trading, then covers the basics of options trading, then moves to advanced information on options trading (that include images charts and graphs) and eventually gives the final thought.
By the time you finish reading the book, you’re ready to start trading options with a clear advantage over vast majority of other traders that just jump into it without knowing what they’re doing.
That said; here are the 10 best options trading books that can make you a Pro trader in a matter of months:
1. Options Trading: Quick Start Guide – ClydeBank Finance
This is a detailed options trading book written by ClydeBank Finance, a publishing company whose primary focus is to offer top-quality, reliable and easily accessible information to global audiences.
ClydeBank Finances encompasses authors and contributors with authority in their niche.
Options Trading: Quick Start Guide is one of the best options trading books adapted to the beginner options trader. It’s chockfull of information on options trading and written in a simple and straightforward way that almost anyone can understand it.
Specifically, the book explains, in details, the various strategic options trading decisions. It shows you the mindset of a trader when taking positions, including specific methods that they use to take those decisions.
The book is written in such a way that it can make any options trader become resilient, sharp and ambitious.
The beginning of the book ushers you to the options trading basics. As you go deeper, you start learning advanced options trading aspects, such as trading fundamentals relating to Call and Put options, effective options strategy for the beginner, pricing of options influencers, why Option Greeks is important and shows you complex yet popular options strategies in different market conditions.
The main take away from this book is that it is suitable for both beginner and experienced traders. It is written in simple English and includes glittering scenarios. The writing style also keeps you interested in the book to gain more insights into options trading.
2. Options as a Strategic Investment – Lawrence G. McMillan
Lawrence G. McMillan, a professional and experienced trader, as well as a best-selling author, crafted this book to help beginner traders to build a strong foundation on basic properties and benefits of options, as well as listed and non-equity.
The book furthers gives a comprehensive rundown of proven tips and tricks for various market scenarios. It talks about the realities of the modern day trading market and the new options products that are making waves in the market.
This is a must-read book for anyone who wants to be a successful options trader. It comes with a detailed analysis of options trading, in-depth guidance on stock investing, buy and sell strategies and new happenings in the futures, as well as future options.
3. The Options Playbook – Brian Overby
The Options Playbook is one of the best options trading books out there. It was written by Brian Overby, a graduate of the University of Wisconsin Stevens Point with a Bachelor of Science degree in Implied Mathematics. He has extensive experience in the financial industry.
In fact, he has been in the financial industry since 1992 and has assumed many roles as an options trading specialist. That makes his book, The Options Playbook, a must read if you want to enter the options trading game with the best foot forward.
Brian Overby decided to write this book to simplify all aspects of options trading and to walk inventors through the steps involved in trading under different market conditions. With this book, you’ll get to learn over 40 options trading strategies, which are simplified to keep the readers glued to the book until the end.
Ideally, the over 40 options strategies are presented in the form of exhilarating plays that provide extensive information on the options strategies he considered and implemented, the right time to execute trades, break-even at expiration, the probability of getting a profit or loss, what is required of Margin Money, implied volatility and time constraints.
The latest edition comes with 10 new plays, as well as 56 new pages of rich content on options trading that explain a short history of options, the most common options trading mistakes traders make and ways in which you can dodge them, an expanded glossary, deep insights into Index and Stock options and how they differ and much more.
For a beginner trader, this book offers effective tips and tricks to dodge common beginner mistakes and suggests creative strategies to enable them to get to grips with the options market quickly.
4. Options Volatility and Pricing: Advanced Trading Strategies and Techniques – Sheldon Natenberg
This is one of the most read books in the field of options trading. Sheldon Natenberg is a respected name in the options trading world. He’s been working in the options trading domain for well over 3 decades and so he teaches everything he knows about options trading in his book.
The good thing about this book is that it has been updated and now talks about the newest trends and developments in options products and trading strategies. Among the many aspects, this book discusses include volatility considerations, pricing models, risk management strategies, as well as basic and advanced trading strategies.
This book is written in a simple, clear and easy-to-understand manner. It highlights the main concepts required to succeed as a trader. With his vast experience as an options trader, Sheldon talks, in detail, about the theory and practical side of options trading.
Specifically, he talks about the hallmark of options theory and ways in which it can be implemented to identify and leverage trading opportunities. The book also goes on to discuss the various trading strategies and which strategies to select for a given market condition.
The latest version also includes new sections that give added information on stock option, stock index futures and options strategies. It digs deeper into the subject of volatility. You can’t go wrong with this book if you’re looking to become a Pro options trader.
5. Rogue Options – Rogue Options
This comprehensive options trading book aims to teach any beginner, budding and experienced trader the ins and outs of options trading. It comes with fine-tuned details and vivid images that support the information available inside it.
The author, Rogue Options, tells you that you don’t need any financial background to be able to put these techniques into practice. Anyone with the desire and drive to make money through options trading can use the strategies easily.
Rogues Options goes further to expound on the many option strategies listed in his book to allow you to make money online consistently as an options trader. The author provides precise details of what every trade does and specific steps to take to set it up in the trading software.
The explanations also include step-by-step instructions, along with screenshots to allow anyone reading the book to easily understand the strategies.
Rogue Options has complete confidence that anyone reading this book will achieve success in the options market even by investing just $50.
6. Getting Started in Options – Michael C. Thomsett
Michael C. Thomsett is a British-born American author. He is an internationally renowned author with more than 75 books under his belt in various sectors of finance, such as real estate, business and investing.
Getting started in Options is his most successful book. It was initially published in 1986 and has since sold over 300, 000 copies.
He wrote this book with the beginner trader in mind. It explains the common terms used in options trading in an easy-to-understand way that even the lowest level investor can understand.
With this book, you’ll get the chance to learn the details of how to buy and sell both calls and puts options.
The book offers any budding options investor smart strategies to employ during trading. It points out the risk involved in options trading and tips and tricks to use to prevent it.
Michael C. Thomsett does a great job of debunking the options market by offering you numerous examples of many checklists, helpful tables, simple illustrations, and hands-on advice on how a beginner trader can safely harness opportunities in the options market.
If you’re a beginner options trader, Thomsett’s expertise can help you to take winning stock positions to generate some additional cash flow.
7. Options Made Easy: Your Guide To Profitable Trading – Guy Cohen
Options Made Easy is one of the best options trading books written by Guy Cohen, an innovator in the financial trading. He is credited with the innovation of FlagTrader, unique OVI Indicator, OptionsEasy and other trading tools.
He specializes in trading stocks and options, which is why he came up with the book “Options Made Easy”. It explains all you need to know about options trading in a simple way to enable you to start trading quickly and begin making profits in any market.
With this book, you’ll get to learn basic options strategies via real-life examples, charts, case studies and easy-to-comprehend diagrams.
This book walks you through the steps to design your trading plan using technical and fundamental analysis to evaluate your entry and exit point for every trade.
Guy Cohen is also the author of the best-selling book called Bible of Options Strategies. As stated earlier, he is credited with developing OptionsEasy, an online trading tool that helps traders to take winning positions.
Chapter three on the basics of fundamental analysis is particularly useful to the beginner trader. It gives insights into various options trading aspects, including financial ratios, and how to use screening tools to find options trading opportunities.
For any motivated investor looking to make money through options trading, this book is a great resource.
8. Option Trading in Your Spare Time: A Guide to Financial Independence For Women – Virginia McCullough and Wendy Kirkland
This great options trading book was co-written by Virginia McCullough (an accomplished writer) and Wendy Kirkland (a successful options trader). The book is adapted to women. Specifically, it teaches women how to be financially independent through options trading; regardless of whether they have a 9-5 job or a full-time housewife.
It focuses primarily on executing trades online and communicating everything you need to know to become a Pro trader. It’s adapted to both the beginner and accustomed trader and presents resourceful information on options trading in an easy-to-understand way.
In the book, Virginia McCullough and Wendy Kirkland tell you that options trading is a risky market, but if you’re a woman and you have some money to spare, you can learn the skills in the book and try your luck. It might just end up being a lucrative source of income for you.
9. The Bible of Options Strategies – Guy Cohen
The “Bible of Options Strategies” provides practical guidance on the flexibility and benefits of options trading. It’s easy to understand and comes with simple examples that use easy cross-referencing to enable you to find what you want fast, as well as leverage opportunities even if they’re short term.
The book also covers all options strategies any trader should know.
The key takeaway in this book is that even with modest experience in trading, you can get to the next level as an options trader quickly because the author has explained complex concepts flawlessly.
Besides providing great value, this book walks you through the modern options trading techniques to increase your odds of winning.
Some of the main trading strategies you’ll learn in this book include elimination or reduction of risks, trading with leverage, how to profit off declining stocks, how to make profits from volatility and how to protect yourself from different variables.
10. Get Rich With Options: Four Winning Strategies Straight from the Exchange Floor – Lee Lowell
Lee Lowell is an options trading expert for Mt. Vernon Research. He is one of the most respected options professionals in America.
The book tells you that in order to make it in today’s financial markets, you must think of using options in your investment pursuit.
Options allow you to take trading positions with minimal risk and less financial investment. You can actually achieve anything with options just like you would with stocks or commodities.
In his book, Lee Lowell tells stock and commodity option traders things that work and those that don’t.
With this book, you’ll learn the basics of options trading including options pricing criteria, how to choose strike price, as well as how to take advantage of volatility and the use of Delta.
He then shows you the 4 options trading strategies that have put him on the map, such as selling naked puts, purchasing deep-in-the-money call options, selling covered calls and selling option credit spreads.
He says that implementing these strategies effectively is the quickest way to success in options trading.
Options trading might be an unfamiliar area of investing, but these books can help the beginner novice trader to get to grips with it.
The goal of these books is to bring you, as a beginner, to the point where you can actively pinpoint opportunities in the market, enter and exit trades and articulate what you’re doing in the course of the entire trading process.
So, if you seriously want to build a career as an options trader, make sure to start by reading and studying these books.