Top 5 Books to Become an Option Trader

The truth about the trading of options and making money is clear and simple. Futures contracts Options on futures Futures options trading strategies Commonplace mispricing strategies. Lot of stuff if you want to understand how each stategy is affected by multiple factors like volatility and time. Few other caveats have been identified by the readers such as making the charts more colorful or including some other strategies which could have made it more interesting but overall it is a definite read for someone who desires to take explore the market with a limited risk appetite. Great selection of books. When you invest in stocks, you can make money when they rise or pay dividends. This book is mostly oriented towards professional traders as it has some really good mathematical methods to calculate and forecast volatility for pricing.

Options Trading Book Review. This best options trading book has been recognized as one of the best sellers for the new professional traders as they are given to learn the trading strategies and various techniques of risk management essential for success in the options markets.

Options Made Easy by Guy Cohen

The author of this book has real trading experience as an options market maker on the trading floor and then as the founder of his own trading firm, and this hands-on experience shines through the entire book. Get Rich with Options is a simple approach to options trading that offers 5 effective strategies for options trading. The author makes the effort to explain concepts in every day terms and never makes anything more complicated than it needs to be. This is considered the top options trading book for beginners and for options traders who like to keep things simple.

This book offers all the bread and butter knowledge that you need to trade options presented in an accessible and enjoyable format. Every concept and idea is backed up with useful diagrams and easy to understand examples from the real world of options trading. This book is considered the options trading manual for professional options traders. Inside you will find everything that there is to know about options trading covered in full detail and backed up by extensive examples. Weighing in at around pages, most options traders do not read the book from cover to cover, but rather use this book as a handy reference guide when developing a position or feeling out a potential trade.

This book is considered to be the essential options trading manual for professional traders, combining all there is to know about options in one simple and easy to follow guide.

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Personal Capital Ellevest Betterment. Blooom M1 Finance WealthSimple. Advisors Brokers Companies Investing Retirement. About Us Contact Publishers. Terms of Use Privacy Policy. Exercise and assignment Options symbology Order entry Profit graphs. The importance of covered call writing The total return concept of covered writing Computing return on investment Execution of the covered write order Selecting a covered writing position Protection in a covered write.

Risk and reward for the call buyer Which option is a buy? Uncovered naked call options Philosophy of selling naked calls Risk and reward. Ranking bull call spreads Ranking bull put spreads Uses of bull spreads.

Neutral calendar spread Bullish calendar spread Three expiration series. Ratio calendar spread Choosing the spread trade strategy Delta neutral calendar spreads.

Reverse calendar spread Reverse ratio spread Reverse ratio backspread. Put strategies Pricing put options Effect of dividends on put premiums Exercise and assignment. Put buying vs short sale Selecting which put to buy Ranking prospective put purchases Loss limiting actions. Which put to buy?

Tax considerations Put buying as protection for the covered call writer No cost collars. Uncovered put sale Naked put write Buying stock below market price Covered put sale Ratio put writing. Covered straddle write Uncovered straddle write Selecting a straddle write Strangle combination writing. Synthetic long stock Synthetic short sale Splitting the strikes. Butterfly spread Combining an options purchase and a spread Complex options strategies.

Ratio put spread Deltas Ratio put calendar Ratio calendar combination. Put and call arbitrage Dividend arbitrage Conversions and reversals Carrying costs Risks in conversions and reversals Interest plays Box spreads Variations on equivalence arbitrage Effects of arbitrage Risk arbitrage using options Pairs trading Block positioning. Black-Scholes Model Expected return Applying calculations to strategy decisions Institutional block positioning. Market baskets Program trading Index arbitrage Market basket risk Impact on the stock market Simulating an index Trading the tracking error.

Futures contracts Options on futures Futures options trading strategies Commonplace mispricing strategies. Moving averages Implied volatility Volatility of volatility Volatility trading. Two ways volatility predictions can be wrong Trading the volatility prediction Trading volatility skew. Basic tax treatment of options Exercise and assignment Special tax problems Tax planning strategies for equity options. Understanding options Differentiating between options styles Using options in challenging markets Option contracts Valuing options Options mechanics.

Macro factors Stock market bias Call and put activity Volatility as a proxy measure for fear Breadth and sentiment tools. Stock chart technicals Identifying strong sectors Sector volatility tools Projecting prices for trading. Monitoring options greek changes Paper trading as a strategy Using trading systems Shifting from knowledge to mastery. Developing a reliable plan Managing your costs Optimizing order execution. Long stock protection Limiting short stock risk with calls Hedging your bets with options Avoiding adjusted options risk.

Limiting directional risk Neutral view vs neutral position Trading with delta Trade adjustments. Implied volatility levels Understanding ratio spreads Using ratio backspreads. Winning positions in sideways markets Butterfly positions Condor positions.

Writing covered calls How to choose the right covered call Step-by-step selling covered calls Managing your covered call position Assignment:

#2 – Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor

By the time you finish reading the book, you’re ready to start trading options with a clear advantage over vast majority of other traders that just jump into it without knowing what they’re doing. That said; here are the 10 best options trading books that can make you a Pro trader in a matter of months: 1. Discover the best Options Trading in Best Sellers. Find the top most popular items in Amazon Books Best Sellers. Top 3 Options Trading Books. Options trading is one of the most exciting and rewarding areas in contemporary finance.