Option trading can be a bit difficult investment practice to pull off. Fortunately, some people have taken the pain to simplify the process and compile them into books. These books can help you solve the mystery that surrounds option trading.
Below, you’ll find a list of books to learn option trading
Did you know you can learn Options Trading completely for free? Yeah, it sounds crazy but it’s true.
Because Options Trading can take a while to learn, some platforms offer “demo” accounts, where you can trade with money that isn’t real. This is by far the best way to learn options trading and will teach you more than any book ever can.
Best overall: Option Trading Crash Course
Option trading crash course written by Frank Richmond is a book that offers a comprehensive guide to the option market. In his book, you’ll find different strategies on the different types of trades that can help you make the most of your returns. It goes a step further in teaching how to recognize spot patterns and how it is a good investment.
As a beginner, you don’t have to worry about having any understanding of option trading. The book simplified the definitions and helped to demystify the process as much as possible. And it does this in simple terms and with a sure way to make profits with option trading. Frank Richmond has authored other books like “Forex Trading” and “Exposing Blockchain”.
Option Volatility and Pricing by Sheldon Natenberg
Almost every expert and professional in option trading have read this book. Some option traders refer to it as the “bible”.
Knowing how market volatility corresponds to option pricing is a deciding factor in helping traders evaluate fair values in the option market. In Sheldon Natenberg’s “Option Volatility and Pricing”, you’ll find a lucid explanation of theoretical option pricing models. Alongside examples that have proven effective and yielded profits in different market conditions.
In Natenberg’s book, you’ll find easy steps to help you as a beginner, and give you the best approach to trading options. Basic concepts like risk management, how option affects stock prices, volatility and option pricing are also treated in the book.
Fundamentals of Futures and Options Markets by John Hull
Traders that deal with commodity futures markets often know the importance of options trading.
Before this book, John Hull has written a book titled “Options, Futures and Other Derivatives”. This book contains information on the understanding of the futures and options trading market.
Followed by his book “Fundamentals of Futures and Options Market”, John Hull has been able to expand more on derivatives, futures and risk management.
Also, John Hull has a reputation for being an expert on risk management and he has served as a consultant to many popular investment banking firms.
You can be sure to find valuable and actionable information on derivative instruments, trading interest rate futures and other strategies for maximising your profits.
Best on Strategy: The Options Playbook
This book is majorly for those who have gotten the hang of the option trading market but want to do better in their investment strategy.
In this book “The options Playbook” by Brian Overby, you’ll find 40 strategies on options trading and a guide on how to execute them. Brian explained in detail everything you need to know on how volatility relates to pricing variables and why. Brian Overby is a senior options analyst and consultant at Ally invest.