Best Options Trading Book
When it comes time to reading trading books I am very selective and have a high standard.
There are few books I absolutely recommend owning. Most information you find in books is easily accessible online for free.
However, when it comes time to the best options trading book, this is hands down a must-own.
Take it from me, someone who has been trading options for over 12 years.
Best Options Trading Book – Why I Love this Book
This book is subtitled as the guide for “advanced trading strategies and techniques”. It sure does live up to the name.
You will find all of the detailed information you ever need to learn options trading in text format.
It starts with an introduction to the options market, settlement procedures and how options are priced.
From there it picks up to explain advanced pricing models, their limitations and uses.
By the time you hit chapter 6, you will start to understand options volatility on a very, very deep level.
Overall, this book is the bible to any professional options trader. In fact, many professional options traders have this handy on their desk for reference.
I have my copy right beside my trading workstation for ease of access!
Best Options Trading Book – Breaking Down the Contents
First I want to make sure you get the right book, so here is the title cover below.
If you want to pick up your copy on Amazon, click here to purchase now >
Chapter Breakdown:
- Financial Contracts
- Forward Pricing
- Contract Specifications and Option Terminology
- Expiration Profit and Loss
- Theoretical Pricing Models
- Volatility (my favorite chapter)
- Risk Measurement I
- Dynamic Hedging
- Risk Measurement II
- Introduction to Spreading
- Volatility Spreads
- Bull and Bear Spreads
- Risk Considerations
- Synthetics
- Option Arbitrage
- Early Exercise of American Options
- Hedging with Options
- The Black-Scholes Model
- Binomial Option Pricing
- Volatility Revisited
- Position Analysis
- Stock Index Futures and Options
- Models and the Real World
- Volatility Skews
- Volatility Contracts
Best Options Trading Book – Conclusion
The entire book is 570 pages long. While it is no easy read, I am not quite sure it is meant to be read cover to cover in one go.
Therefore, I would suggest reading the pricing and volatility chapters first.
From there you can expand your knowledge by different strategies. Once you learn a strategy, I highly recommend trying to implement it in a simulate account so you can gain the practical knowledge to go along with the theory.
At the end of the day, as an options trader your job is to make money – not just understand how it is possible to do so.
Once you purchase this book you will have access to very powerful insight and information.
You can learn how to time the market and apply these tools in our swing trading subscription package.
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The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.
