The best Options Trading books: Reddit reviews

From 3.5 billion Reddit comments

My friend recommended me this when I first started, but the truth is all the reading in the world isn't going to give you real-world experience. Start small, do your research, thorough research. Learn about greeks, IV, when to take profit, ect. Study the stocks you're interested in and know about, don't worry about trying to follow someone else's trades on a company you know nothing about.

Personally, I started small with 250 and made smart choices to bump it up to 2400 in three weeks, but I got cocky and didn't fully research an investment so I lost 1000 in one trade. If I had kept a level head I would have noticed that there was a significant short interest trying to drive the stock down and the low volume added fuel to the fire. Undervalued or not, hedge funds with billions to throw around can influence the stock price of most companies quite a bit, always be aware of that.

Once you gain some experience and understanding, day trading with the current level of volatility is pretty easy albeit risky at times. Just remember to not gamble with money you can't afford to lose. It may be boring but I keep about 5/6ths of my portfolio in equity that I rarely touch. For every one person you see on this sub that turns 40k into 250k on a MU yolo, there are ten others that turned their 40k into 0k. Be smart and goodluck!

Honestly? Hull. https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315

- But chances are most of that will go over your head in terms of application/practice.

- So... realistically. Sink or swim mock / practice options on investopedia.

- Even better. TastyTrade videos on YouTube and lurking on /r/options

Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition https://www.amazon.com/dp/0071818774/ref=cm_sw_r_cp_api_glt_fabc_06VNJSD6Y5PX7GKD0SF8

Can’t recommend this one enough. I’ve read it multiple times and always come back to it if i have questions.

I liked watching “InTheMoney” on YouTube when i started

If you have think or swim they also have great educational resources

this book is good too

I'd suggest getting started with Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits by Dan Passarelli as well as his Options Bootcamp podcast.

In the Money on YouTube also has some pretty good videos for beginners.

https://www.amazon.com/dp/0071817840/ref=cm_sw_r_cp_apa_i_ErJCFbMNTFVZF

Don't trade options until you fully understand everything about what you are trading. (You don't have to understand the whole market or get crazy, but at the very least understand exactly what you are selling/buying/borrowing/obliging to do.)

Also, you should never use absolutes like "fact" when talking about stocks and the future.

> Do you think its wise for me to start doing US stock options?

Probably not. Do you understand options? Have you experimented in the IB paper trading account? Options provide a magnitude of ways to lose your shirt.

I recommend the classic: https://www.amazon.com/Options-Futures-Other-Derivatives-10th-dp-013447208X/dp/013447208X

Thanks! I can't get too specific about my job, because there aren't many of us, but I'm a mathematician. Been working on some new ideas, and I hope to post more soon.

I don't know of any books that cover my work, but my favorite options book is: https://www.amazon.com/dp/1119583519/ref=cm_sw_r_cp_apa_glt_fabc_8MS3GVR412KKEBB2616P

Then anything by Ernest Chan for developing algorithms for trading. Good luck, and lmk if you ever have any questions or want to chat!

Option Volatility and Pricing - Sheldon Natenberg

Can be a little heavy but for anything you can find on YouTube acts as a good fill in the gaps.

Options as a strategic investment is also very good and covers so many different strategies. It’s 900 pages long, so I’d use it more as a reference for diving deeper into specific strategies rather than a sit down and read it all the way through kind of book. Options as a Strategic Investment: Fifth Edition https://www.amazon.com/dp/0735204659/ref=cm_sw_r_cp_api_glt_fabc_F2Z2R19YXVKYXCZCPARF

depending on how much time you want to spend on it: https://textbookbasics.com/product/options-futures-and-other-derivatives-9th-edition-2014-by-john-c-hull/?utm_source=Google%20Shopping&utm_campaign=Textbookbasics&utm_medium=cpc&utm_term=2560&gclid=Cj0KCQiA9P__BRC0ARIsAEZ6irg7mZAYl...

it's difficult af and you have to be able to follow along ito integrals and shit. But it'll give you a fundamental understanding.

If you don't want to go through that slog, you can get a much more practical view with https://www.amazon.com/Option-Volatility-Pricing-Strategies-Techniques/dp/0071818774

Gosto bastante deste "Options as a strategic investment" (ainda que seja muito extenso). É bastante técnico mas acredito que ajuda bastante, especialmente se o foco for o investimento em derivativos.

Edit: Aconselho a compra em inglês.

Deixo aqui o link: https://www.amazon.de/-/en/gp/product/0735204659/ref=ppx_yo_dt_b_asin_title_o00_s00?ie=UTF8&psc=1

I haven't found a book with the stuff from my post yet, but I did just read this book and thought it was really good for turning any alpha into a profitable trading strategy.

https://www.amazon.com/dp/1119583519/ref=cm_sw_r_cp_apa_glt_fabc_03KTEW2E2AJP05Y8K52X?_encoding=UTF8&psc=1

Taking profit when your asset allocation gets out of whack is normal. So is buying when it gets out of whack. If BTC goes down 50% and the S&P goes up 20%, then an asset allocation strategy would have you sell some S&P to buy more BTC. I recommend this book to explain more....

https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/1260026647

hey codex, congrats for starting a very big journey! If i were you, I'd read a few options books before you get started, and do some paper trading.

https://www.amazon.ca/Options-as-Strategic-Investment-Fifth/dp/0735204659 is one of my favourite, and shouldn't be too hard. Message me if you have more questions!

It’s a book. I ordered mine from Amazon. It’s also come down in price considerably.

Options as a Strategic Investment: Fifth Edition https://www.amazon.com/dp/0735204659/ref=cm_sw_r_cp_api_glt_fabc_4BDQZ2TD8NA5W4ZNT92H

I like this book. I bought the 1st edition (haven't read the 2nd), but i felt that it taught me the greeks (all its definitions) and it was easy to read, but also detailed enough with the right visuals. https://www.amazon.com/Trading-Options-Greeks-Volatility-Pricing/dp/1118133161

https://www.amazon.com/Option-Volatility-Pricing-Strategies-Techniques/dp/155738486X I think this is what you want

Edit: http://terredegaia.free.fr/ppics/Trading/Mcgraw-Hill%20-%20Option%20Pricing%20And%20Volatility%20-%20Advanced%20Strategies%20And%20Trading%20Techniques%20-%20Sheldon%20Natenberg%20-%20(1994).pdf Pdf

I'm not sure what kind of technical background you have, OP, but it may be worth looking into the technical details of options. Books like Options as a Strategic Investment or Paul Wilmott Introduces Quantitative Finance do a great job of describing the math behind options and how they're used on an institutional level. Obviously you don't need to know these things to trade options, but I felt they were a real eye-opener in terms of understanding the kind of effort or technical prowess required to be a competitive trader.

Again, it might not be fair to compare yourself to institutional traders and their methods, but it's difficult to assess how realistic it is to get good enough to make this your main source of income, and these books can give you a sense of how well you understand the landscape of the field.

https://www.amazon.com/dp/1260026647/ref=cm_sw_r_em_api_glt_fabc_SMWW0NV0WQSRC3CMWRA2 This book is a bit old now, but I read it forever ago and it’s stuck with me. What this book does is explain WHY you want different asset classes in your portfolio and what is the purpose of rebalancing. You can find plenty of model portfolios online for free, but this guy will explain why with lots of historical data to back it up.

Yeah I got you.

https://www.amazon.com/Market-Wizards-Interviews-Top-Traders-ebook/dp/B006X50OPW

https://www.amazon.com/Option-Traders-Hedge-Fund-Framework-ebook/dp/B00844NXC6

I have those and their a pretty light read. The first Market Wizards will show you how other traders plan and execute off certain market conditions. The second is going to give you a background on the whole market chain and how options fit in and play off of it.

Of course also read Benjamin Gram's book. Its the bible of investing.

I would look into trading options as a way to augment your strategy. They allow you to be as speculative or as risk averse as you’d like.

Highly recommend Dan Passarelli’s book, Trading Option Greeks as a technical intro and reference.

Good luck!

When you decide you need a faster way to lose money, read up on options.
Start here:

amazon link: Understanding Options

And: WSB guide to not being an options retard

The others have given you answers to your specific question. All I will say is: DONT TRADE OPTIONS UNTIL YOU UNDERSTAND THEM!!!!

There is a (very long) book which I recommend you at least flick through before opening any more options trades: here

It costs $60 but that is just a fraction of what it will cost you to NOT read it.

Here is one of the best options books ever written. Good luck.

There is no substantial reason besides speculative thought of BTC going up in value. It's a digital commodity. There is no real or prime reason it should go up.

It is a safe bet versus it's counterpart, didn't say it is an easy concept nor for everyone. There is flaws to the what I'm suggesting, which you have not brought up. Made me realize you are talking about of your ass to be a SJW on reddit.

You could easily have said, "x and y are the reasons it sucks." Your post doesn't highlight that because you have said nothing. So if someone blindly takes my advice they now don't know why it is bad or inefficient.

I suggest you reread your beginner option book on derivatives lmfao

I link for you: https://www.amazon.com/Options-Futures-Other-Derivatives-10th/dp/013447208X

You failed to mention the implied vol surface, let alone any of the other measures important to the evaluation of options risk and trading opportunity.

You wold be better off staying out of the options market until you better understand the instruments themselves.

This book will give you a good foundation: https://www.amazon.com/Options-Futures-Other-Derivatives-10th/dp/013447208X

Why are you trading options if you don't know the basics?

At a bare minimum you should read Characteristics and Risks of Standardized Options.

If you want more, try Hull. You can find PDFs online and older editions at relatively low prices.

The Book Hardy recommends
The Paper Hardy recommends after reading the book
hope this is right

https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315#:~:text=Options,%20Futures,%20and%20Other%20Derivatives%20by%20John%20C.,accessible%20to%20a%20wide%20audience.