Options trading might be very complex if you are a beginner. It is hard, we must admit it: numerous terms, numbers, strategies, moves, and a lot of attention. You might be wrong if you think you can’t handle everything at once.
Many people become millionaires trading stocks and options, why don’t you?
Picking a book is one of the best learning methods. You will always have it by hand.
A book about trading options might help you learn what you need to learn to come a successful options trader.
Here is a list of five high-rated books that have helped many people understand options, what they’re about, and how to make money trading them.
Best Book About Trading Options
- The 3 Best Options Strategies for Beginners: The Ultimate Guide by Freeman Publications
- Understanding Options by Michael Sincere (Second Edition)
- Options as a Strategic Investment by Lawrence G. McMillan (Fifth Edition)
- Option Volatility & Pricing by Sheldon Natenberg (Second Edition)
- Your Options Handbook by Jared A. Levy
Your knowledge is something you need to keep expanding and investing in it.
A single book can not teach everything there’s to know, so we decided to choose five of them that might help everyone, whether beginners or advanced traders.
These books will teach you the options trading basics, pricing strategies, exit strategies, and overall options knowledge.
And all five books are available on Amazon, so you can easily purchase them.
The 5 Best Books About Trading Options
This book is best for beginners since it tells a lot about options trading, calls and puts, the condor strategy, and the credit spread strategy.
The book is simple and understandable for everyone, especially beginners unfamiliar with some trading terms.
The ultimate guide comprises three books. They are mainly good for beginners, but experienced traders also benefit from them.
Despite the simple explanation about option strategies and management, you can learn more about the trading concepts and rules for generating returns.
Highlights
The ultimate guide will help you gain options trading knowledge from zero. You will learn how to make strategies that will bring profit and create quick cash by directly paid premiums.
You will also learn about the main difference between covered and uncovered calls, the rules for adjusting a covered call, and the use of covered calls when lowering the purchase price of owned stocks.
The writer has mentioned the most used criteria for selecting the best stocks when writing credit spreads, the technical indicators needed for credit spreads, and the most effective ways to master the psychological side of trading options.
By buying the book, you receive free access to the video course for profitable investing.
Whether you have traded options or are a beginner, this guide will help you find and learn everything step by step.
This book's first edition focuses on how to make money monthly trading options.
Also, it has some tips that might help you buy and sell calls and puts.
Because it lacks precise information and focuses on older trading methods, we think that the second version might be best for you.
The second edition of this book is upgraded with new strategies that might be helpful for many beginners and existing traders who want to upgrade their knowledge.
We chose this book because it provides the basics and all the important options trading strategies.
The writer’s combined history and personal anecdotes written in an easy-to-read style make this book generally understandable for everyone, including beginners.
Highlights
Since the book is mainly written for beginners, you will learn what options are and how options trading works. Also, you will meet the advantages and drawbacks of trading options and comparison with stocks.
Once you get to the “Stocks” part, you will understand how options are related to stocks and how they work together.
Then, the following chapters of the book will guide you to income generation, adverse price movement protection, and trading strategies.
Options as a Strategic Investment is a classic everyone must read before joining the options trading market. Also, it is one of the most trusted and high-rated options trading books by readers.
The fifth edition has updates and many tested and proven techniques for options trading. Beginners and experienced options traders can get valuable information about innovative options trading strategies.
Highlights
The 1,000+ page bestseller includes information about the best options trading strategies that helped many people increase their profits.
Another thing that you will learn from this book is to use options as a hedge and understand how taxes apply to option trading profit and loss.
The writer also included details about trading index options and options on futures, as well as measuring market volatility.
Overall, the book is a complete guide that has helped many traders master their trading skills and use the best systematic methods in today’s options trading market conditions.
A comprehensive guide with tons of valuable information about the price and volatility options trading can bring. Option Volatility & Pricing is the best book about trading options since it covers from the basics to the most advanced strategies.
The second edition of this book is updated and revised, providing thirty-year professional trading guides and patterns.
The book has many topics that can help beginners and advanced traders improve their skills.
Highlights
The book provides a clear theoretical explanation of options pricing models, featured with examples of specifically used strategies that resulted in profitable outcomes.
This guide provides examples of cases that have shown effectiveness under different market conditions through the years.
Further, the chapters of this guide will help you learn more about volatility contracts, dynamic hedging, pricing models, options evaluation principles, and trading strategies.
The key moment that makes this book one of the best options trading books is the practical advice regarding risk management techniques.
Your Options Handbook is a comprehensive but simplified guide every trader and trader-to-be needs to have among the options trading books collection.
Many traders find this as their favorite guide since it is well-written and engages the reader.
The book has 11 chapters, starting with Options Trading Market Basics and Options Market Mechanics.
Because the book gives basic information about the options trading market function, it is suitable for beginners who need to learn everything from zero.
Highlights
The book guides you through the stock and options market, giving you a professional perspective on the trades and strategies.
Although the book is written with professional sights and advice, it is easy to understand.
The following chapters guide you into different trading strategy discussions based on whether an option is bullish, bearish, or neutral.
Moreover, you will learn many details about market particles, useful tips by options trading masters, and the trading psychology that plays a vital role in the whole trading process.
Why We Chose These 5 Option Trading Books?
The books are written in simple language so that everyone can easily understand the terms, strategies, and market trends.
Even if you are an experienced trader who has invested in options, it is good to have one of these books by hand.
We chose these 5 books because all of them are written by experts in options trading and finance fields.
Learning from experts will give you first-hand information about how options trading started and how it is predicted to evolve in the future.
All five books are simple and understandable, even for beginners.
Experienced traders and options investors can also benefit from these books since they share valuable information about market trends and strategies.
Generally, the books focus on different option volatility and pricing strategies, trading market trends, options market development, improving your trading skills, technical analysis for options trading, etc.
Knowing how the trading market works and how experts see it through their own eyes is good because you will have valuable basic knowledge before joining the options trading market.
The last thing that made us pick these five books about trading options was their affordable price and availability.
Everyone can easily find and purchase them from Amazon.
Anyway, if you opt to begin your options trading career, we advise you to choose FoolProof as a guiding service that will help you easily get into the options trading business.
Conclusion
We hope you found the best book about trading options in this article. We wish you luck in starting a new business that might bring you the money you have always dreamed of making.
Improve your skills, sharpen your abilities, and buy another book to upgrade your knowledge. Options are a better choice than trading stocks. Invest in liquidity and low risks.