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Option Trading Books:
One of the characteristic of every successful people is their keen interest in reading useful, relevant books. I too, must attribute my current success largely with a huge line of the best option trading books that I have read along the way.
Here, you will find the option trading books that I have read and the level of option trading knowledge they are relevant to so that you do not have to search through the hay stack again for the golden needle.
You are a beginner when you have heard of option trading but have never taken any course on option trading neither have you started option trading for real or that you have started trading options but have completely no idea how this whole thing really work.
These option trading books will teach you what option trading is, what it can do, the basic strategies and what online option trading is all about. These books are must read for anyone who wants to start trading options.
Books For Beginners:
1. Retire Young, Retire Rich by Robert Kiyosaki
This is the book that got me started on option trading. Although not a option trading book per se, it has a chapter on option trading which explains it in ways that complete amateurs can almost instantly understand.
On top of just option trading, you will find many important and inspiring money making tips that has been proven in my own life so far.
Master’s Ranking : 4 / 5 Stars
Average Customer Ranking : 3 / 5 Stars
2. Fundamentals of the Options Market by Micheal Williams
Being a very objective person, this option trading book really satisfied me thoroughly. It is literally a textbook on option trading that teaches you EVERYTHING there is to know about option trading… how options work, how option positions work, how the greeks work, how are options traded, what are the markets available and more and more… a must read for anyone who definitely must know what they are doing before starting option trading.
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
3. Investing Online For Dummies by Kathleen Sindell
Trading online is truly the way to go for modern option trading. There are many advantages, including, being able to trade from anywhere in the world, automated features that makes your option trades more precise than any human brokers can perform and total control of your option trades at the click of the mouse as and when you want to.
Option Trading online has allowed me to trade the US markets and to execute precise trading strategies from anywhere in the world. Learn what it is all about from this simple to understand book.
Master’s Ranking : 4 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
4. Trading For A Living by Alexander Elder
This best option trading book is almost the most important beginner book I have ever read and I strongly recommends it as a must read for all option trading beginners.
This book touches on the most important aspect of option trading… the trading psychology! Yes, all too often, amatuers fail not because the method they follow is lousy but that the way they react to the way the market moves makes them perform disastrous moves.
Master your mind before mastering the market!
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
INTERMEDIATE LEVEL
You belong to the intermediate level when you have traded options before but without any specific knowledge in how to choose or analyse stocks. You are still seeking for a method of option trading which you can adopt as your own so that you may profit consistently.
The option trading books here introduces you to technical and fundamental analysis, different styles of trading the market like trend following and mostly importantly, the candlesticks method which revolutionalised the way I trade.
- Profitable Candlestick Trading by Stephen Bigalow
This is definitely the Option Trading Book that completely revolutionalised the way I trade. It introduces you to the concept of charting based on what we call Japanese Candlesticks. It teaches you everything about why candlesticks works, what which signal means and how it all works with option trading.
A definitive option trading book that shows why candlesticks is still one of the most commonly used charting method used by fund managers.
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
2. Technical Trading Tactics by John Person
This is not an option trading book per se but it introduces you to one of the 2 faces of stock market trading… Technical analysis. Both technical and fundamental analysis have its place in the stock markets and the option trading markets.
Both aspects have its pros and cons. This and the next book will give you a basic overview of the techniques used by both faces of the coin and allows you to decide what works for you.
Personally, I am a staunch technical option trader and have developed my trading methods based on technical analysis.
Master’s Ranking : 4 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
3. The New Buffettology by Mary Buffett
This is a book on the methods of the master fundamental analyst of the world… Mr Warren Buffett. This is a book compiled by his daughter in law based on the private teachings that he gave to his family. His knowledge is the epitome of the other side of stock market analysis… Fundamental analysis.
This is a book that will definitely open your eyes to why fundamental analysis is so useful in long term option trading.
Master’s Ranking : 4 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
4. Options As A Strategic Investment by Lawrence Mcmillian
This pure option trading book takes option trading knowledge to the next level for experienced option traders. You will be able to learn how to use options as part of an overall portfolio and also helps you to develop your own trading system. It also breaks many of the “invincibility” myths of option trading and teaches you the real science of option trading.
This option trading book is a must have for anyone who is serious about trading options for a living.
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4 / 5 Stars
5. Trend Following by Micheal Covel
This book introduces you to the trading method that is most used by hedge funds… Trend Following. In this well researched book, you will learn about how the apply the science of trend following, read about high profile successful trend followers such as Ed Seykota and also how to use software to conduct backtest and stress tests.
Since the markets cannot be consistently predicted, following it is the best way to go and this book tells you how to do that.
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4 / 5 Stars
6. Bible of Options Strategies by Guy Cohen
This Option Trading Book goes into every single option strategy known to men and then test them one by one based on the reliability and risk/reward ratios. This is a good book to read before you convince yourself what works and what doesn’t. Guy Cohen specifically states which strategies he wouldn’t implement in this books.
Master’s Ranking : 4 / 5 Stars
Average Customer Ranking : 4.5 / 5 Stars
7. Star Trading System by Masters ‘O’ Equity
This option trading book is definitely the first time any hedge fund manager would publicly reveal and teach his proprietary option trading methods to the world. This is a technical option trading system that is backed by 30 days of personal live chat training with me.
This option trading system teaches you how to screen for stocks using our proprietary formulas, how to choose the right options, how to enter a trade and how to exit profitably, consistently.
This is a must have for anyone who is serious about making a full time living by option trading.
Master’s Ranking : 5 / 5 Stars
ADVANCED LEVEL
You belong to the advanced level when you have been trading options for a while and wants to learn more about how to manage risk and your option trading portfolio.
- Portfolio Management Formulas by Ralph Vince
This book is a must have for all advanced option trading enthusiast. Every option trader must come to a point after learning a reliable way to trade options where you will begin to wonder how much money to put in every position? How much money to dedicate to each strategy?
This book gives you a scientific way of determining how to manage your portfolio.
Master’s Ranking : 5 / 5 Stars
Average Customer Ranking : 4 / 5 Stars
2. Hedge Fund Risk Fundamentals by Richard Horwitz
It is extremely difficult for hedge fund managers to set a standard of performance for performance measurement as well as a scientific way to construct a derivatives portfolio.
Although not a dedicated option trading book, it does give me an extremely precious insight into risk management and portfolio management.
This book introduced me to many useful ratios and formulas which I can use to measure the amount of risk in my portfolio and showed me a useful software which I now use to evaluate the profitability and risk of my trading strategies. A must read for veteran and elite option traders.
Master’s Ranking : 4.5 / 5 Stars
Average Customer Ranking : 3.5 / 5 Stars