Options trading has gained popularity in the last decades as it offers traders the possibility to deal with a significant volume of financial assets and it also grants them access to leveraged transactions that can dramatically expand the earnings obtained from each trade.
If you are currently starting your journey as an options trader, or you if you are already trading them on a daily basis, you should take a look at these must-read books for every options trader.
Options as a Strategic Investment, by Lawrence McMillan
Lawrence G. McMillan is a seasoned investment professional who has been in the industry for more than 30 years and in this insightful book, he outlines key strategies to successfully trade options for different purposes. Options as a Strategic Investment is on its 5th edition now and it has sold over 300,000 copies since it was first published in 1980.
Option Volatility and Pricing, by Sheldon Natenberg
The go-to books for those who are looking to start their journey as options traders, Option Volatility and Pricing provides clear and easy-to-understand concepts about options, what they, how they work, and most importantly, how they should be priced. The book can be summarized as a combination of a book that gives option traders foundational knowledge, and strategies to cash-in from their activities.
Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits, by Dan Passarelli
The Greeks are a group of financial metrics employed to analyze options in relation to their underlying assets, maturity dates, strike price, and other elements associated to the option itself. In this book, Dan Passarelli provides a carefully outlined analysis that goes from the very basic to the most complex features of the Greeks, to help traders in incorporating these important metrics into their day to day options operations.
The Option Trader’s Hedge Fund, by Mark Sebastian and Dennis Chen
This book was written to help those who want to make a living out of trading options, by outlining strategies and techniques that can help them set up a business-like options trading operation. The Option Trader’s Hedge Fund encourages those seeking to earn a steady income out of trading options to set up a “one-man hedge fund” that is ran based on sound trading principles and time-tested techniques. The book is co-authored by Dennis Chen, the Chief Investment Officer of Smart Income Partners and a seasoned hedge fund manager; and Mark Sebastian, a former trader and the Chief Investment Officer of Karman Line Capital.
Profiting with Iron Condor Options, by Michael Blenklifa
In this trading book, Blenklifa explains how to earn money from employing a time-tested strategy that involves identifying iron condor options. This is not a book for amateurs, as it assumes that the reader has a basic understanding of how options works, but if you are currently looking for a winning trading strategy, Blenklifa outlines in detail how you can successfully earn 2% – 4% monthly return by trading iron condor options on up and down markets.
Those are my must-read books for option traders, and you can also check out all of my books here:
https://www.amazon.com/Gavin-McMaster/
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
