(Part 2) Best products from r/options

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

• Exploiting Earnings Volatility (Brian Johnson), portfolio manager / options trader. helped understand how to differentiate earnings vol vs regular vol + model them. I think his idea to use linear regression to impute the market's expectations across time is a good foundation but needs to take into account some extra things.
  
  
  
• Volatility Trading (Euan Sinclair), prop trader
  
  
• Trading Volatility /Correlation/Skew/Term Structure (Colin Bennett), Quant at Deutsche -- really interesting and if you've got portfolio margin you can use some of the strategies, like pairs trading / dispersion.
  
  
• Options Volatility Trading (Adam Warner), previous options market maker. prob the first book I read about vol trading.
  
  

I don’t know how I knew. Maybe you have a youthful and optimistic writing voice.

I’m 37, and I actually manage money for a living as an RIA (registered investment advisor). If you’re unsure about a career for yourself, I’d highly recommend it. Someone only 20 years old with your expertise would have no trouble getting into the business and be very successful.

Using Bitcoin or any hard currency as opposed to fiat adds immeasurable value to society. Read “The Bitcoin Standard” by Saifedean Ammous and your perspective will be expanded

https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861 and buy

And get a copy of the reference tome: Options as a Strategic Investment

https://www.amazon.com/Options-as-Strategic-Investment-Fifth/dp/0735204659

And your investment game will be better than most advisors by the time you’re 22. That’s the best advice I can give👊

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:

• Trade Options with an Edge
  
  By Tony Rihan (he calls in as "Tony from Mexico City" if you're familiar with the show):
  
  
• How I learned to Trade like Tom Sosnoff and Tony Battista: Book One, Trade Mechanics (Volume 1)
  
• How I learned to trade like Tom Sosnoff and Tony Battista: Book Two, Advanced Strategies and Insights (Volume 2)
  
  Edit: Also, for websites, the Option Alpha podcast / blog / service seems to be of the same vein.

Asked a friend who makes way more than me and is also much smarter than me to recommend something since I don't read much. He said this new text is great. I'm going to get it for myself.

https://www.amazon.com/Trades-Quotes-Prices-Financial-Microscope/dp/110715605X

I’m with you, I prefer to have a physical book, even if there’s great resources online, sometimes I want to be off the computer and still be able to learn.

There’s tons of options books, and I’m sure many (and all of the worthwhile ones) have info on limiting losses and getting out of a bad situation. I’ve only read a few, so doubtlessly there’s people with a wider range of personal experience.

The Only Options Trading Book You’ll Ever Need

A quick look only showed me one exit-strategy specific book but I didn’t look very hard. That one seems limited to covered calls, and the aforementioned book definitely covers exit strategies of all sorts.

Whether there’s a more specific book, I’m not sure. And others will have their favorites. I like that since it is useful for beginners or seasoned traders, imo.

Here are a few I liked.

On the easy side but very thorough, good for starting:

Options as a strategic investment, Lawrence McMillan
https://www.amazon.com/dp/0735204659/ref=cm_sw_r_em_apa_i_0IfLDbZYQ3Z67

Focusing on market making:

Option market making, Allen Baird
https://www.amazon.com/dp/0471578320/ref=cm_sw_r_em_apa_i_WPfLDbTZ0C15B

Harder but good stuff:

Volatility Trading, Euan Sinclair
https://www.amazon.com/dp/1118347137/ref=cm_sw_r_em_apa_i_zKfLDbQ0KSEPG

I rather explore the approach to trade before earnings and sell it before the announcement. It doesn't matter which direction the stock moves, you profit from the rising implied volatility. After earnings are announced, volatility collapses and many trades become unprofitable.

Start with reading this book by Jeff Augen to understand how it can be done.

With AMZN, I find that selling calendar spread before earnings are a more profitable and consistent trade.

The most important setup is position size. Always allocate many small trades and don't let greed increase the weight on a single position. Options is about probabilities, so consistency in execution is paramount to succeed overtime.

Please read this before continuing.. its a good crash course. You will murder your account and profits without these core understandings. Remember chinese news and information trump charts. Great first win!

Understanding Options 2E https://www.amazon.com/dp/B00GWSXX8U/ref=cm_sw_r_cp_api_i_.vkDCb9PTYHH7

This is the one I use for the desk mount. It's super easy to move around a 38" monitor in any direction with it.

AmazonBasics Premium Single Monitor Stand - Lift Engine Arm Mount, Aluminum - Black https://www.amazon.com/dp/B00MIBN16O/ref=cm_sw_r_cp_apa_i_V91NDbTF2VJNH

Optionsplaybook is really good as a primer. Once you have a hang of the basic vernacular of options trading, you should try to read a real book:

https://www.amazon.com/Volatility-Trading-CD-ROM-Euan-Sinclair/dp/0470181990

https://www.amazon.com/Trading-Options-Greeks-Volatility-Pricing/dp/1118133161

These are pretty basic and go beyond using options for speculative positions.

Actually agree with OP on this, the book is very good at explaining why/when positions would be used. I got a copy a long time ago from Amazon.

https://www.amazon.ca/Options-Playbook-Featuring-strategies-all-stars-ebook/dp/B00J8KC8NA

Other than the books mentioned, I've found the books from this guy really smart and easy with a lot of experience in them
https://www.amazon.com/gp/aw/d/0988843919/ref=mp_s_a_1_1?ie=UTF8&qid=1483674053&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=rookie+option&dpPl=1&dpID=51WZmVJy%2BAL&ref=plSrch

Surprised no one has mentioned Tversky & Kahneman yet. Kahneman was awarded the Nobel prize in economics for his pioneering work in behavioral economics .

Their most famous/accessible work is probably Thinking, Fast and Slow

This has worked great for me, and with Prime shipping, it's a no-brainer

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.

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.

Richard Bookstaber

https://www.amazon.com/gp/offer-listing/0201001233/ref=sr_1_fkmr1_3_olp?s=books&ie=UTF8&qid=1526365805&sr=1-3-fkmr1&keywords=bookstaber+on+options

Nassim Taleb

https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803/ref=sr_1_1?s=books&ie=UTF8&qid=1526365899&sr=1-1&keywords=taleb+options

I'd start with Bookstaber first. Yeah the book is "old" but the basic concepts are the same. Taleb gets more into all the Greek gunk

Sheldon Natenberg.

If you code, then write an option pricing calculator and play with it.

still natenberg

Read this book

https://www.amazon.com/Option-Volatility-amp-Pricing-Strategies/dp/155738486X

https://www.amazon.com/Option-Market-Making-Financial-Commodity/dp/0471578320/ref=sr_1_1?ie=UTF8&qid=1500849945&sr=8-1&keywords=option+market+making

https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803/ref=sr_1_1?s=books&ie=UTF8&qid=1500850029&sr=1-1&keywords=taleb+dynamic+hedging

http://www.amazon.com/Volatility-Edge-Options-Trading-Strategies/dp/0132354691

http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Dstripbooks&field-keywords=volcube

http://www.amazon.com/Complete-Guide-Option-Selling-Options/dp/0071837620/

http://www.amazon.com/Option-Traders-Hedge-Fund-Framework/dp/0132823403

Sir, you need to learn more about options before you begin touching it... I recommend reading Understanding Options 2E. The author presents the topic in very easy to understand language.

Regarding your question, the difference is in risk vs reward. If you were to sell a put spread with a 10 point spread, then you have a maximum loss of $1000. A 20 point spread will give you a maximum loss of $2000. Puts with higher strike prices are value more than puts with lower strike price. As a result, you will earn a lot more premium by selling a wider spread. Let's compare the 190/210 and the 200/210 put spreads. In order to sell a spread, you always short the put with the higher strike price and go long on the one with the lower strike. Both spreads consequently will make you go long on the 210 put. You now have a choice of going short the 190 or 200 puts. Since the 190 put is worth far less, you will actually earn a higher net premium by selling the 190/210 put spread than the 200/210 spread. Obviously this comes with a higher risk.