5 books to learn how to trade options
Options have a reputation for being risky and difficult, although many seasoned traders prefer options trading to stocks. Indeed, options traders can benefit from a wide variety of market outcomes.
To be a successful options trader, an investor must learn about options, which strategies to use, and how to trade them.
We’ve put together a list of five books to help you learn more about how to trade options.
1. “Options trading as a strategic investment: Called the Bible of options trading, the Laurent McMillan provides an overview of practical options trading strategies designed to minimize risk and maximize profit potential.
2. “Volatility and option prices”: Sheldon Natenbergon how traders assess fair values in the options market, this book provides a clear explanation of theoretical options pricing models, with examples of specific trading strategies that have shown historical profitability, under various trading conditions. Marlet.
3. “Fundamentals of Futures and Options Markets”: Widely recognized as the authority on derivatives, futures and risk management, this John C.Hull provides a clear understanding of the futures and options markets.
4. “Greek Options Trading: How Time, Volatility and Other Pricing Factors Drive Profits”: Written by Dan Passarellithis book explains how Delta, Theta, Vega and Rho impact option values.
5. “The Options Trader’s Hedge Fund”: Written by a hedge fund manager Denis Chen and options trading coach Marc Sebastian This book provides a step-by-step introduction to setting up a short options investment portfolio designed to generate steady income from selling or selling options.
If you prefer to learn about options via video, check out Benzinga’s best YouTube channels for options trading.
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