What is/are the most crucial books to read for an aspiring stock options trader? I have a solid knowledge of basic options including how they work, price fluctuations compared to stock price, spreads, etc. What book/s is a can't-miss before trading? (Option Trader Handbook, Volatility and Pricing, etc?). Thanks for your help.
"Options as a Strategic Investment" by Lawrence G. McMillan Thick enough to stun an ox, but it's all in there.
"Option Pricing and Volatility" by Shelly Natenberg is definately a requirement if you're serious about trading options.
I agree. Great book. Needs to be updated though, because a lot has changed. I think he wrote another one more recently, but I haven't read it.
I bought my first two options books when I joined ET (being already into the fifth year of profitable trading)⦠McMillan and Natenberg , based on few posterâs recommendations. Didnât finish reading either of them. Sure, few interesting nuances and staff , but what beyond it ? 500 + pages to explain the concept that everything/any position is a trade of in options ? Serious question to all : Did ANYONE started immediately to make money after turning last page of McMillanâs book ? Please share your "a ha !" moment(s) Just donât get me started on lower/upper volty deciles â¦
At this point, I think I will likely by the McMillan book and Options Volatility and Pricing, but maybe a description of my questions may help a bit. I've been studying trading for a long time, and feel like I am ready to begin trading in the next two or three months. My questions for options have to do with which ones are the best for swing trading (2-8 days approx holding). I figure I could go safely in the money with 80% or more intrinsic value, playing the higher risk and rewards with a diverse set of near or barely out options, and how to manage the greeks in my purchasing decisions. Any further book suggestions or advice will help. Thanks. Best Regards, Greg
Read all these books mentioned and then some. Unless you want to learn the basics, almost all the books give the same idea. Yes, the presentation may be different, and explanation may be better, but ultimately you learn the strategies. I have found lot of sites and blogs for free giving the similar insight. No, I am not undervaluing these books, just that they are great for understanding the basic or advanced concepts. What I see missing is the next step - managing the trade. You may know all the basics, the Greeks, and in between. But the hard and difficult part is to know what to do when RUT drops 25 points? There are some books suggesting stock trade management, but Options trading is different, and this gap needs to be filled. CBOE has good webinars, Dan Sheridan shines there, and I heard that Dan is about to release a book on Managing the trade. However, I don't think the book is out yet. May be there are some and I am not aware of some other books.
For me, the others were interesting, but not making any money for me. This one did. It is practical, and explains things like adjusting postions once you are in them. Different types of position adjustments as well. Once you have a better than basic understanding, this one stands out. http://www.tradingoptionsvisually.com/form_booktov.html I am not affiliated with the book in any way. Regards Stuart