The 3 Best Books for Options Trading

Cole Turner

Options offer investors the opportunity to diversify their portfolio and generate another stream of income.

Before investing in options, it is important that investors fully understand what options are to minimize the risk involved in options trading. There are numerous books and online resources an investor can use to become familiar with options. From this article, investors will learn about the three best books an investor can read to learn more about options trading.

  1. Options as a Strategic Investment by Lawrence McMillan: This is the go-to book about options trading. It has over 1,000 pages of material that includes specific option trading strategies and market conditions where they work the best, using options as a hedge, how tax laws apply to option trading profits or loses, and how to obtain the best risk/reward position for an investment portfolio. The book also offers advice on trading index options, options on futures, and measuring and utilizing market volatility. Examples of numerous options trading strategies and scenarios are included. If an investor only wants to read one book about options and still be prepared to trade successfully, then this would be the book to read.
  2. Option Volatility and Pricing by Sheldon Natenberg: Understanding market volatility and how it affects option pricing is essential in order to be successful when trading options. This book will provide readers the knowledge needed to understand the relationship between volatility and pricing. Material in this book includes risk management and evaluating option trading opportunities, how to create one’s own option trading strategy, and explanations of simple theoretical option pricing models. Everything is presented in a clear and easy-to-follow manner. After reading this, investors will understand the key concepts that relate options to their underlying security, volatility, option pricing, and the time value of options.
  3. The Option Trader’s Hedge Fund by Dennis Chen and Mark Sebastian: This book offers investors an option trading business model to earn consistent and profitable returns from trading options. Mark Sebastian is an option trading coach and Dennis Chen is a hedge fund manager. Together, they combine their expertise to form this book. In this book, readers will find a step-by-step guide for setting up an short option investment portfolio, which is designed to generate a profit from selling options contracts. The book contains numerous examples and scenarios that make it easy for the reader to understand the options strategies presented. The idea behind this book is that investors will establish their own individual hedge fund as options traders.
Exclusive  Buying and Selling Options – The 5 Best Online Brokers and Trading Platforms

These three books each offer useful information that can be used to learn about options trading. The books are presented in a simple and clear manner. Investors can read these books to become better prepared to profit from trading options.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Hilary Kramer explains why investors should not buy the controversies in brands such as Nike.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE