12 Best Option Trading Books For Beginners in 2024

Best Option Trading Books for Beginners: If you want to become successful in option trading, it’s very important that we keep learning about the markets. There are many books available that will help you to grab whatever knowledge you need about option trading.

For many people option trading is very strange and mysterious investment practice. Fortunately, there are number of books on the subject that make it easy to understand and help traders of all kinds profit from them.

The initial books that you read impact the most in your mind because they shape of your trading journey. When it comes to investment or trading the importance of book reading becomes even greater.

Many of you want to learn option trading but you don’t know how to learn option trading or from where to learn it. Today in this article, I am going to tell you the names of 12 such best books and about them, with the help of which you can learn about option trading.

Table of Contents

List of 12 Best Option Trading Books for Beginners:

Options, Futures and other Derivatives
The Options Playbook
Options as a strategic investment
Options Trading: The Hidden Reality
Mastering The Trade
The Bible of Options Strategies
Trading Option Greeks
Option Volatility & Pricing
Trading in The Zone
Option Trading Crash Course
Option Trading in Your Spare Time
The Option Trader’s Hedge Fund

1. Options, Futures and other Derivatives

“Options, Futures and Other Derivatives” is written by John C. Hull. In this book, you get guidance about theoretical concepts along with practical strategies which you can implement in the market. This book will give a different outlook not only to beginners but also to experienced traders, so definitely read this book.

This book covers various financial derivatives, options, futures, swaps and other complex financial instruments and also provides a solid foundation for understanding the mechanics, pricing models and derivatives in real-world financial markets.

2. The Options Playbook

“The Options Playbook” book by Brian Overby. This book is very good for those who are beginners, those who have just started, those who know only call/put and don’t know much else, and those who are dynamic, it’s very good in option trading. How it understands and gives lots of strategies which help you out with real-life experience.

The book provides practical insights and actionable advice making, it’s a valuable resource for anyone interested in option trading. ‘The Options Playbook’ is a very good for its accessibility, breaking down complex concepts into understandable language and also covers a wide range of option strategies from basic to advanced allowing readers to gradually build their knowledge and skills. [Best Option Trading Books for Beginners]

3. Options As a Strategic Investment

“Options As a Strategic Investment” is a comprehensive guide to understanding and successfully executing option trading strategies, the book was written by Lawrence G. McMillan. A seasoned option trader and former floor trader and was first published in 1986.

This book is called a Classic in option trading. Everyone says that this book should be read because it’s an important thing, it’s not only basic but also has advanced strategy and along with it the spice of risk management and market analysis has been added to it.

So in this way, this book has been given a lot of regards even big hedge funds also follow this book. ‘Option is a Statistics Invest’ this book is a comprehensive and practical guide to option trading, the book provides a clear and concise explanation of option mechanics. It’s an essential reference for anyone interested in option trading of their level of experience. The book is written in a clear and engaging style and it’s easy to understand. [Best Option Trading Books for Beginners]

4. Options Trading: The Hidden Reality

“Options Trading: The Hidden Reality” by Charles M. Cottle is a book that provides an in-depth look at the complexities of options trading. It covers various strategies and techniques for managing risk and maximizing returns.

Emphasizes the importance of understanding the underlying realities of the market. The book is intended for experienced traders looking to expand their knowledge and improve their trading performance.

This book explains advanced trading strategies and risk management as well as Greeks, technical indicators like moving average, VWAP and also how you can create a dynamic portfolio.

5. Mastering The Trade

“Mastering The Trade” is written by John F. Carter. This book is also beneficial, although it’s not focused only on options, it will give you a lot of valuable insights on technical and strategic. This is a very explosive book, i will recommend you this book, you should definitely read it once.

‘Mastering The Trade’ focuses on various aspects and covers technical analysis, chart patterns, risk management etc. It’s essential to evaluate the concepts and strategies to supplement your learning with real-world experience and continuous education. [Best Option Trading Books for Beginners]

6. The Bible of Options Strategies

“The Bible of Options Strategies” this book is by Guy Cohen.

This book provides a methodical guide and will explain each strategy in detail to you. Real-life scenarios, what will happen if the market opens gap up or gap down? How can you create option strategies when the market is volatile?

This book is very helpful if you are interested in learning about option trading strategies. It covers a wide range of strategies, provides practical insights and you can learn from basic to advanced and implement them effectively. Also, you get additional resources to learn about option trading.

7. Trading Option Greeks

“Trading option Greeks” is written by Dan Passarelli.

This book covers the basics of options, Greeks, volatility and options specific kinds of opportunities, various types of volatility and others are strategic because you can do it on a weekly basis in Nifty, BankNifty and Finnifty.

Dan Passarelli’s book delves into the significance of various factors in determining options pricing and strategies for maximizing profits while managing risk. The author clearly explains with practical examples making this book a valuable resource for both beginners and experienced traders looking to enhance their understanding of option trading. [Best Option Trading Books for Beginners]

If you want to become a master in option trading, then this book guides you to understanding and utilizing the “Greeks” which are following Greek terms :

Delta – change in the premium in relation to change in the price of underlying.
Vega – measures change in option price when volatility moves.
Theta – decay in option price every day as the expiration gets nearer.
Gamma – measures change in delta when stock price moves.
Rho – measures change in option price when the stock price moves.

8. Option Volatility and Pricing

“Option Volatility and Pricing” is written by Sheldon Natenberg.

One of the great aspects that we talk about in this book is volatility. You all know how important volatility is for option traders, so this particular book is on volatility and what is its impact on options and option pricing. It also helps you understand how you can access and manage your risks.

The book covers various options strategies such as covered call, protective put and bull spread the concept of delta-neutral trading and how it can be used to manage risk, the use of options in portfolio management is also discussed. The book also covers the Greeks, Delta, Gamma, Theta, Vega and Rho and their role in options trading.

One of the most widely read books among active option traders around the world “Option Volatility and Pricing” has been completely updated to reflect the most current developments and trends in option products and trading strategies. [Best Option Trading Books for Beginners]

9. Trading In The Zone

“Trading in the Zone” by Mark Douglas is a highly recommended book on trading psychology, discipline and focusing on the mindset, required for successful trading.

Technical analysis is not so much important in trading, psychology is much more important. Your mindset is how you behave on a particular trade, how your mindset reacts is more important than what analysis you have done. If you want to develop your psychology, then this book will be very helpful.

This book will help you to develop the right mindset to handle the challenges of option trading effectively. And also can help option traders looking to improve their overall trading approach and performance.

10. Options Trading Crash Course :

“Options Trading Crash Course” is written by Frank Richmond. It’s a comprehensive guide to understanding And mastering the art of trading options Through the book covers everything from the basics of options trading to advanced strategies for maximizing profits.

The book begins with an overview of options trading introducing traders to key concepts such as call and put, strike prices and expiry dates. The author provides traders with information on how to place orders Including limit orders, market orders and stop-loss orders. [Best Option Trading Books for Beginners]

11. Option Trading In Your Spare Time

“Option Trading In Your Spare Time” is written by Wendy Kirkland and Virginia McCullough. There are very interesting concepts in this book and many people say that we will not make trading as full-time but we will make it part-time, so this book gives many practical tips and strategies to individuals in such a way that they can manage option trading along with regular jobs.

So once you have cleared the basics and intermediate, then you will think that if you don’t want to leave your job or leave your business but want to do trading, then this book tells you the step-by-step process. I know that this book is from the Western world there will be an influence but in the Indian context too you will get very good examples.

12. The Option Trader’s Hedge Fund

“The Option Trader’s Hedge Fund” by Dennis A. Chen and Mark Sabastian takes a unique approach by presenting option trading as a business complete with risk management Strategies and profit-generating techniques and emphasizing the need of discipline, planning and risk management.

This book offers a comprehensive framework for building a successful options trading business making it a valuable resource for aspiring professional traders and also provides a wealth of knowledge to help you build and manage a successful option trading business. [Best Option Trading Books for Beginners]

Conclusion

These are 12 great books that are highly recommended, not only for beginners but also for experienced traders if you want to learn more about option trading. These books you must read if you want to sharpen your trading skills.

I hope you liked the information given by us and if you have any problem or you need information related to option trading, then you can tell us by commenting below.

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FAQ’s

1. Which book is best for beginners?

‘Options, Futures and Other Derivatives’ is the best book for beginners where you get proper guidance about theoretical concepts as well as practical strategies which you can implement in the market.

2. Which book is best to start with trading?

‘The Options Playbook’ is the best book to start trading for beginners or those who have just started and this book provides practical insights, actionable advice making and valuable resources.

3. Can I learn trading from books?

Yes, you can learn trading from books. Many books provide guidance, various types of strategies, technical analysis, trading psychology, risk management, fundamental analysis etc and books provide insights, valuable resources and practical knowledge shared by expert traders.