The below question was asked and I was hoping someone can help me out so I can respond to an online trader question with suggestions...question was posted eleswhere. Note: I myself do not trade options. Appreciate any help on this topic. Nihaba Ashi
OSI is one of the most popular (if not the most popular) options books read and recommended. I found it to be a very good and helpful introduction to options.
As far as I'm concerned if you are really serious about trading options, you will want to read "Option Volatility and Pricing" by Sheldon Natenburg. It is the bible of options trading. Read it at least 4 or 5 times. It's not a holy grail to the options market but it does give you a complete mechanical understanding of how they work and how they are priced. Good luck.
I'm going to have to second Maverick74 on his point. Natenburg does a great job of explalining the many aspects of options that aren't understood by the novice trader. I currently own the book. My only problem with it is that I haven't been able to finish out the last 75+ pages due to his subject matter. He is a bit dry at times and uses too many examples... I still highly recommend the book.