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Reddit reviews: The best options trading books

We found 102 Reddit comments discussing the best options trading books. We ran sentiment analysis on each of these comments to determine how redditors feel about different products. We found 30 products and ranked them based on the amount of positive reactions they received. Here are the top 20.

Top Reddit comments about Options Trading:

u/begals · 3 pointsr/options

Cool, learning is good. I’m a reader, I recommend picking up a book (fairly up to date one, at least one that was written post-internet era and is still generally applicable in the way option orders work, as it’s certainly different than what a book in the 80s would have said, if there was one). Choice is up to you, search the sub for “recommend books” or something similar and you’ll see plenty of suggestions.

IF you’re a reader, I say go for a book, you’ll read when you wouldn’t be looking online. Also, a good book already sold you, you bought it, and so it pushes no agenda, and the authors is incentivized by sales to have the most informative book, especially in the current retail market where people likely put equal or greater trust in strangers’ Amazon reviews than the vestiges of how it used to be pre-amazon and yelp, ie consumer reports, industry/hobbyist magazines, and word of mouth. I don’t know who the go to for book reviews was, I’m guessing NYT always ran a book critic column, and perhaps trading mags would have reviewed some. Big, needless tangent I’m writing here, but what a change. Anyway, point being, an author should generally just be out to be helpful as good reviews will drive sales. Free books (or even worse, this “Apiary fund” which is really a ‘school’ built to sap you money. See below for a note on the subject) are.not to be trusted, the adage there’s no such thing as a free lunch is pretty much always applicable to investing. Nobody is giving away trade secrets for free.

If you are tempted by a class of some sort, ideally look for something in your town or city that does community adult education. Generally it’ll be $10-50 for this sort of thing, depending on the length. The idea being, community centers and non profits are not trying to squeeze your money, so not only is the lesson cheap, it’s centered on teaching, not selling. Many “free” classes advertised (You’ll see RE investing most commonly, though no doubt people do it for options) are really excuses to get you in a room where you feel trapped and give you the hard sell. Usually some variation of, here’s a tiny bit of info, now to get the real secrets just pay $5000 for this week course, or something similar. Avoid these like the plague, they have no wisdom to offer and just want your cash.

Similar to community adult ed, university related classes also have no hidden agenda, so if you find an options course you could audit or mmmmm or something, you could go for it. I didn’t go to business school or major in economics or anything so I don’t know if they have whole classes on options, but perhaps at least one that covers the market along with options, maybe even futures.

But time-wise, you’ll get the info quickest reading online or reading a book, and you’ll learn quickest by doing, no amount of reading will prep you or teach you as trading will. But you want at least a good background.

For books, I can only recommend from what I’ve read. I’ve read I think 4, 2 stood out:

Understanding Options Ed. 2E by Michael Sincere. It’s not a very complicated book, it’s not teaching you ICs and jade lizards, but it gets you all the basics you need to ask smart questions.

The Only Options Book You’ll Ever Need by Russell Stultz, is my favorite. It starts simple, covering everything the simpler book does, and builds on that. It’s nicely out together for progressive learning, and if you read both, the first book you could eat in a day, and by the 4th chapter or so you’ll be ready to start trading. Then keep reading, since if you go too far with zero experience it’ll not actually stick.

Or, use the help bar here and its resources, the CBOE has great online teaching resources, as does Tastytrade, and others.

Hope that helps steer you in the right direction- good luck!

u/saluja04 · 3 pointsr/wallstreetbets

Sure, I can try to help you out. I wouldn't call myself an expert, but I've studied them and spent time at an options market-making firm on Wall Street. My education in derivatives started at university, where I took an options and derivatives class. We used John C Hull's book, Options, Futures and Other Derivaties (link is to latest, 9th edition; you can use previous editions). Incidentally, Hull is a professor at Universary of Toronto.

While employed, we used Sheldon Natenberg's Option Volatility & Pricing: Advanced Trading Strategies and Techniques. The text is on the dry-academic side but is definitely an excellent resource.

You (and others) can also check out Khan Academy's excellent introductory videos here.

I'm not sure how I'll be able to mentor you, but I'm happy to give it shot. Let me know what I can do to help you out!

u/Generalj10 · 6 pointsr/quant
  • Hull's Derivatives is the bible
  • Stigum's Money Market is a legitimately enjoyable read and taught me SO MUCH
  • Fabozzi's Fixed Income Handbook is a good general overview of the FI market. (More widely known than, but not as good as Stigum's.)
  • I don't know where your programming skills are, but try to model out anything that you find interesting in the books above using Jupyter. This will help a great deal with internalizing what's happening mechanically underneath the concepts you're learning.
  • How I Became A Quant for easy train/bed reading.
  • Mandlebrot for a dose of realism. Models are always wrong.
  • The Medium of Contingency for a glimpse into the mind of a practitioner. It's... weird.
  • Cliff's blog because he's humble (and also my idol). His chapter in How I Became A Quant is the best, imo.

    disclaimer: Not a quant, never went to school for it nor worked in finance. I just like reading. This list is more than enough for the summer, but let me know if you want material focused on anything in particular. (Structured products, history, etc.)
u/Ki1103 · 2 pointsr/math

I would start with this article by Mark Joshi. It's a little old (2008) but serves well as an introduction.

Now a quick disclaimer, I'm still quite junior and my work falls somewhere between the Desk/Dev roles. Based on your description you'd fall into more into the Model/Research roles. Also these are my opinions ymmv.

W.r.t general finance/economics, I dislike most finance/economics books. I would treat it more like learning a language listen to podcasts, read (good) blogs, non-academic books etc.

u/Adequatelyendowed · 3 pointsr/investing

Hello,
I'd start here..
http://www.cboe.com/ the cboe website offers free education detailing essentially everything about options, their properties, how they're priced, simple--> complex strategies.

A good book I liked was Getting started in options. The cboe website, while incredibly encompassing, is a bit a brief in their lessons(IMO). This guy offers an easy to understand intuition behind taking some of the trades. The book ranges from beginner tactics to intricate spreads/condors and such.

Id say to cap it off and give you a well rounded education, you keep this one handy Options as a strategic investment. I say this because I think the way it's setup is more of a handbook, it skimps on the details and cuts right to the schematics of each trade and how to manage.

The order of resources was deliberate, I've found when the material is too hefty from the getco it's a bit discouraging when you first start out. However, as you progress you crave more, you dive deeper and once you demonstrate some proficiency, you want to have something easy to skim through and reference just in case.

Hope that helps!

u/iobase · 4 pointsr/StockMarket

Trading options is more complex than trading binary instruments (stocks, fx, futures, etc) as there are a lot more moving parts. Options are like ternary instruments, they allow one to profit if the underlying goes up, down, or sideways. Best way to get started is to learn what a put and a call are. Then move onto basic positions. The best approach I can recommend is to pickup a beginners book. I read this - the first version - which taught me the ropes quickly. I also picked up several other books afterwards that got into the subject on a deeper and more technical level. One of the most fascinating things I've learned so far is what implied volatility is. See another post. With IV you can work out statistically the chances of a trade profiting. Like someone else mentioned, www.tastytrade.com, a free streaming live options talk show, is based on statistical trading and not trading on fear/hope.

Traditionally, iron condors are traded with index ETF options such as the SPY or IWM. There's obviously less risk of a massive move in a short amount of time. Though black swans do exist, see 2008, euro crisis, debt ceiling, etc. If the s&p or the russel stays in your IC's range until it expires, you win. You profit on theta decay this way. Since ICs are short volatility, there was a huge drop in NFLX implied vol today -went from 70sh to 50sh. That 20 some odd point drop in IV alone amounted to over 50% of $4800. The rest was from theta decay and delta.

u/MichaelLuciusJulian · 1 pointr/options

not OP but I thought about writing a post with more info on each book / recommendations / best summaries.

u/NicolasDegreas · 62 pointsr/wallstreetbets

So basically... You had no experience whatsoever with the stock market, during a bull market you were able to outperform the S&P by 12% or so (Accounting for leverage) and now you think you're going to do well with options?

Let me tell you a story, in Business class in High School, we had this small stock market challenge, one group in particular, from my school, with no knowledge of finance whatsoever, reached 90% gains in just a month, they followed by dropping to -10% overall. Imagine if that was a 'real' account and they had reached 90% just to start fucking with options then tank to -200% and be indebted at 15 years old, well, that's what you're doing.

Anyway, I wish you the best of luck, at least read a book about options, VERY different from stocks, here's my recommendation "Options, Futures, and Other Derivatives" by John Hull

PS: That group was my group, I did all of the trades, which were ALL on 3x leveraged ETFs, pretty wild rollercoaster of emotions when I sank from +90% to -10%, from #1 to #36,205. The reward was minimal, but my dopamine receptors were already counting the win. The people who beat us, though, were +130%, if we'd gotten our last move right (It was about the elections), we would've gone to +300%.

u/dave32891 · 0 pointsr/investing

This is a great book I read when getting started. If you know very little about options it's a great start. It explains everything so clearly and in simple terms with great examples. A++ would read again

u/Leviathan97 · 12 pointsr/options

So, I'm not sure these are what you're looking for, because they're basically written by viewers of tastytrade to distill what they've learned from the show. In other words, if you're looking for a different perspective or an independent confirmation of the methodology, this ain't it, but if you just want the tastytrade principles in book form, you might find them useful.

By Dr. Russell Richards:

u/madfatter · 3 pointsr/weedstocks

no you're right. i was making a simplistic calculation on the interest.

i am familiar with options and black-scholes (i have the bible), but i just haven't fucked around with them much.

i need to read up on conv. debenture effective interest rate.

i'm assuming:
4.94/3.29 ~= 1.50, which annualized is about 22.5%, 7.1% of which is the semi-annual compounded coupon rate.

u/TheRealAntacular · 6 pointsr/investing

> What makes you so accredited?

You didn't even graduate yet, what makes YOU so accredited?

> Have you ever taken an investments class in your life?

Nope! In my spare time, I did take some pretty good notes on this though.

> That shit isn't "simple stuff you can learn on your own",

Don't get your panties all up in a bunch just because you realize maybe the past 4 years haven't been the most productive. I could understand a regular ignoramus arguing about the history portion, but to say economics isn't relevant to investing tells me you're a solid C student. Please don't cold call me next summer.

> and thinks hes the shit

I mean, you're not wrong.


EDIT: Literally RIGHT on the /r/investing sidebar:

> Subreddits you may also enjoy

> /r/economics

LOLOLOLOLOLOLOL

EDIT 2: Hey /u/redcards, you're a fucking idiot. Same to you /u/hedgefundaspirations.

u/toomuchtodotoday · 9 pointsr/investing

First you buy:

Options Made Simple: A Beginner's Guide to Trading Options for Success

https://smile.amazon.com/gp/product/0730376370/

Options as a Strategic Investment 5th Edition

https://smile.amazon.com/gp/product/0735204659/

Then you join /r/options. Then you paper trade. Then you trade options.

If you're asking here if you're going to profit or not on a trade, do not start trading yet.

EDIT: I also found these options threads to be helpful:

https://www.reddit.com/r/options/comments/5pekf6/interested_in_becoming_an_options_trader/

https://www.reddit.com/r/options/comments/3zwx40/500_to_1000_bucks_initial_deposit_what_next/cypp8td/

u/doougle · 1 pointr/options

I started out with Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks (2nd Edition). I can't say if it's the greatest book, It's just the one I started with.

After getting this basic understanding, I did the majority of my learning attending webinars at the CBOE website. I haven't been there for a while. I hope they still have them. Tasty Trade is another popular source for online learning.

u/sarcasmismysuperpowr · 2 pointsr/InvestmentClub

I almost wrote out a long piece but -
Options are simple and extremely complex at the same time.

And it really depends what you want to do with them

If you are serious about learning options (and I think they are incredibly valuable) - I would strongly recommend picking up a book or three. Option for Rookies is a good start.

If you have more specific questions - I can answer.

u/BigBucksGentleman · 187 pointsr/wallstreetbets

Look to sell options only in premium rich underlyings (IV rank > 50). Sell around 45 days until expiration. Close between 25% to 50% of max profit. Make sure to roll to defend positions (look to roll around 20 DTE). Sell the 30 delta options, and look to collect 1/3 the width of a spread. If you really want to be a big dick player, beta weight your portfolio to SPY, and keep it delta neutral.

Edit: I got a lot of PMs concerning more information to this approach. Both TastyTrade and OptionAlpha are great resources to learn, and spell out this approach further. Other, more in depth, sources to consider are Option Volatility and Pricing and Options, Futures, and Other Derivatives.

u/amalag · 1 pointr/investing

I am planning to do this. Waiting to get more cash to fund it. And I am paper trading for a few months with this strategy. I bought this book for some more explanation
http://www.amazon.com/Generate-Thousands-Stocks-Before-Selling/dp/1585974242

My only change to what you wrote is to not write them on highly volatile stocks, write them on safer stocks that I want to invest in. I will get less on a monthly premium, but will be happier when I get assigned. I am also thinking to do this on dividend stocks. They are less volatile and I feel the companies are more established. But if you like to own the stock that is the main criteria.

What I have heard is don't chase the premiums. High premiums may just sucking you in.

u/coastcycle · 0 pointsr/options

Anyone trading short vol strategies through the spring probably got hit pretty bad. Long-term, it all works out. I made 20% last year but I gave about half that back in this year's unusual vol shock.

Here is a guy who has made a nice return long-term just selling SPX verticals mechanically. He does have other forms of passive income, so he diversifies outside of the options market alltogether. I have seen similar strategies on the Russel (RUT) and other variations on SPX that also test out well.

https://www.youtube.com/watch?v=8gA8lU6XUmE

Here is an ebook by a guy who made classic tastytrade style earnings trades and tracked his long-term results. Nothing really new in the book but it is nice to see real world proof that things work outside of a backtest or theory.

https://www.amazon.com/Trading-Strangles-Company-Earning-Announcements-ebook/dp/B0121L6Z36/ref=sr_1_4?s=digital-text&ie=UTF8&qid=1527426204&sr=1-4&keywords=option+earnings

u/carlmatt · 2 pointsr/finance

Now it's been a while since I read these, and I'm not complete sure if these are the kinds of books that you're looking for, but I found them quite good:

Options, Futures, and Other Derivatives by Hull: http://amzn.com/0133456315

Investments and Portfolio Management by Bodie, Kane & Marcus: http://amzn.com/0071289143

I hope this helps!

u/naked_short · 1 pointr/CFA

Depends on what you're interested in -

Most of my work is in derivatives so would recommend

u/amazon-converter-bot · 1 pointr/FreeEBOOKS

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u/trader27 · 1 pointr/wallstreetbets

This is a great book and the illustrations help a lot of the technical talk.

https://www.amazon.com/Getting-Started-Options-Michael-Thomsett/dp/1118399307

u/protox88 · 3 pointsr/finance

In that case, start with the famous Hull book. It requires basic mathematical foundation (i.e. intro calculus) and a bit of knowledge on probability.

Don't worry about PDEs, Monte Carlo, or anything for now. Try to understand the Hull book, which is less mathematically rigorous.

If you're still interested after that, then you can look into more advanced probability theory (via measure theory), martingales, stochastic calculus, and so forth - which requires more advanced calculus and understanding of mathematics (probably by 3rd or 4th year math if you're studying in university)

u/Versart · 1 pointr/options

I recommend at least a year of stock trading before getting into options... also read this book (https://www.amazon.com/Trading-Option-Greeks-Volatility-Bloomberg/dp/157660246X/ref=sr_1_3?s=books&ie=UTF8&qid=1539457703&sr=1-3&keywords=trading+option+greeks+by+dan+passarelli ), if it is too advanced, you need to learn more about the stock market before doing anything else.

u/andermic · 14 pointsr/options

https://www.amazon.com/Rookies-Guide-Options-Beginners-Handbook/dp/193435404X

This goes over all of the basic trades. How to enter and exit. And how to make adjustments. It’s a little long winded but very informative.

https://www.amazon.com/Understanding-Options-2E-Michael-Sincere/dp/0071817840

This is less wordy and covers the same topics. However it is less informative than the rookie book. Probably good to start here and then read the rookie book.

u/makanan1 · 1 pointr/options

https://www.amazon.com/Only-Options-Trading-Book-Youll/dp/1945390115

I bought this book a couple years ago and i learn a lot from it and made a lot off the things I learned in that book. I would highly recommend. Depends on your level of options knowledge but im sure you will learn something.

u/scarletham · 1 pointr/finance

Hull's book on derivatives.

Also, someone posted a similar topic 2 days ago. It's more related to the math/logic side of interviews, but still could be helpful.

u/NakedOptions · 1 pointr/stocks

There's no set price, like I said on the post, depends on the maturity, strike price, etc. There's opensource software on github that does this type of calculations as well as websites. If you wish to dive deep into the valuation of derivatives the golden standard is John C. Hull

u/TheyCallMeJenevieve · 1 pointr/options

I haven't had a chance to give either a read but I've seen it recommended enough that I'll send it your way. Have you looked at either Fundamentals of Futures and Options Market or Option Volatility and Pricing: Advanced Trading Strategies and Techniques? Maybe that's the more of what you're looking for.

u/CHAINSAW_VASECTOMY · 6 pointsr/wallstreetbets

When did you guys become such cocky shits that are too good to recommend a fucking book or website to this guy?


Check out Rookie's Guide to Options first. You should have no problem writing covered calls on a stock you own right now, but must have 100 shares and plan to keep holding.


If you want a primer on 'pricing,' just know that options price is all based on volatility. If people expect high volatility (like around earnings) they will bid up prices on options, making them more expensive right before announcement. After an event like earnings, volatility drops. To make money on options, you usually have to make a correct estimate on the direction and/or volatility of the stock, depending on if you've hedged one out or not.

u/hab12690 · 1 pointr/finance

Currently reading this for my derivatives class. Luckily it just became highly relevant to the job interview I have next month.

u/Keviex3 · 1 pointr/FinancialCareers

Pretty expensive, so I'd recommend any older edition. But this is the same textbook I used in my Derivatives course, it's basically an industry standard.

https://www.amazon.com/Fundamentals-Futures-Options-Markets-9th/dp/0134083245/ref=dp_ob_image_bk

u/diemunkiesdie · 2 pointsr/wallstreetbets

The first edition is from 1988, and the Amazon reviews for the second edition say that there are a lot of errors in the new version. How well does the 1988 edition hold up to current trading strategies? Or is there another newer book that you would recommend?

EDIT: Any thoughts on The Rookie's Guide to Options; 2nd edition: The Beginner's Handbook of Trading Equity Options by Mark D Wolfinger? Or Options as a Strategic Investment by Lawrence G. McMillan?

u/N3O9Pr · 1 pointr/stocks

Options Made Simple has basic to box trades. Should be good to get you started. Blue-green book with yellow.

https://www.amazon.com/Options-Made-Simple-Beginners-Trading/dp/0730376370

u/MasterCookSwag · 1 pointr/investing



>Have you read Satan's Bible?

I have not! I can only assume it's full of divine knowledge. I keep telling myself I'm going to read this but I'm not sure if I'll be able to make it through without falling asleep.

u/LoriousGlory · 4 pointsr/stocks

Understanding Options 2E https://www.amazon.com/dp/0071817840/ref=cm_sw_r_cp_api_qr.NBbF490WK3

Option Trading: Pricing and Volatility Strategies and Techniques https://www.amazon.com/dp/0470497106/ref=cm_sw_r_cp_api_Fq.NBbMR04VG1

Dynamic Hedging: Managing Vanilla and Exotic Options (Wiley Finance) https://www.amazon.com/dp/B000UG9JQA/ref=cm_sw_r_cp_api_7q.NBbS126302

u/kevstev · 2 pointsr/wallstreetbets

I am guessing either earnings passed and were meh enough to not move the price so the implied volatility fell yet the price remained stagnant, or its just time decay.

I hate to be this guy but read a book you illiterate SOB. Trading stuff you have little understanding of is a great way to get wiped out quick. Just give me your money or at least let me know what underlyings you are trading so I can be on the other side of the trade.

Might as well give you a suggestion to read: https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315/ref=sr_1_1?ie=UTF8&qid=1469304724&sr=8-1&keywords=Hull+options

u/praeconium · 5 pointsr/options

That guide lists some amazing books but weirdly it doesnt mention the "options Bible" which will teach You everything You look for.

Options, Futures and other financial derivatives - John Hull

https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315

Plenty of pdfs online as well

u/arrobe45 · 2 pointsr/wallstreetbets

Yeah, it’s really basic concepts that get really confusing. I’ve done a lot of reading and it’s starting to become more second nature.

This book helped me: https://www.amazon.com/Only-Options-Trading-Book-Youll/dp/1945390115/ref=nodl_

u/3rdLevelRogue · 3 pointsr/actuary

I passed on the 23rd, so what exam is next? IFM? Can I skip out of order and take the short-term then the long-term? I took an MFE class using Hull's Book in 2017, but would that work for IFM?

u/dza76wutang · 1 pointr/wallstreetbets

I read this book: http://www.amazon.com/Options-Beginner-Beyond-Opportunities-Minimize/dp/0132655683?ie=UTF8&psc=1&redirect=true&ref_=oh_aui_search_detailpage

Which left me with a feeling like I learned a bunch but it also felt academic which is why I wanted to try to go for this as a way to really cut my teeth. Do you have any book recommendations?