Hi guys, I just joined the forum and was wondering what is the "Bible" of options trading? I know 'Security Analysis' is for I-Banking. What about options trading? I am looking for something that gives strategies and how to implement them, as well as binomial pricing and black-scholes pricing. -Larry G.
1) Click on the "Books" tab above, then click on "options". 2) McMillan, Natenberg and Cottle are well-regarded. Try to check them out from a public library before buying them.
My favorite book is probably "Option Volatility and pricing" by Sheldon Nateberg. It provides a really good coverage of the foundational concepts necessary to trade options. These include volatility and its impact on option pricing, which is critical to understand. I don't find the coverage on option strategies that good in this book though. For that I'd either consider "Options as a Strategic Investment" by Larry McMillan, which is a pretty heavy duty book or "The Bible of Options Strategies" by Guy Cohen, which focuses primarily on the strategies. Mark ___________________________ mark@success-with-options.com http://www.success-with-options.com
2nd this recommendation: Options as a Strategic Investment Then read this weekly Options Report:Weekly Options Trading Report Then: Option Volatility & Pricing: Advanced Trading Strategies and Techniques Then:Cottle
All those other books are fine, but this is the first book that ever helped me make money in the beginning. http://books.global-investor.com/books/3275/David-Caplan/The-New-Option-Secret/ GL
Are you meant to read "Options as a Strategic Investment" cover to cover and master all the concepts in the book or just pick out the strategies relevant to your own trading?
My first choice would be "Options as a Strategic Investment" by Lawrence McMillan will give you a fundamental understanding of many option strategies and concepts. "Option Volatility And Pricing Strategies" by Sheldon Natenberg is more technical but AFAIC, is geared more for advanced retail or professional traders trading size as well as the risk management of that.
Read what's relevant to your interests and current level of trading. Read about more complex strategies if they appear on your radar screen.