The Best Options Trading Books
When it comes to trading options it is critical that you have an edge. And there is no better way to developing that edge than by educating yourself. Here are five recommended options trading books to help you get started.
#1 Guy Cohen – Options Made Easy
In the third edition of “Options Made Easy” Guy Cohen reveals advanced options tactics used by elite traders. While this books teaches expert level trading tactics it is still an accessible read. Cohen includes in the book cases studies, anecdotes and visual guides to ensure that even new traders can implement the advice provided. Along with specific strategies for options trading, Cohen also explains the psychology of winning options traders. One of the standout features of Options Made Easy is the inclusion of Cohen’s breakthrough OVI indicator that can be used to identify highly profitable trading opportunities. While “Options Made Easy” is perfect for beginner to intermediate traders, it also has plenty to offer advanced traders as well. Be sure to check-out his other recommended books; The Bible of Options Strategies, and The Insider’s Edge.
#2 Jeff Augen – Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames
In “Day Trading Options” expert Options Trader Jeff Augen highlights the fact that many traditional trading strategies fail to provide adequate protection in the modern volatile market. He also points out the flaws in fundamental analysis and trying to compete against “black box” hedge funds. Instead Augen details strategies that smaller traders can use to gain an edge. Included in the book are techniques for structuring short term trades that can profitably exploit trading anomalies and distortions. He also teaches methods for taking advantage of financial news and planned events. Unlike many options trading books Augen isn’t teaching techniques that may have been effective 20 or 30 years ago. Rather he is teaching methods that work in today’s markets.
#3 Sheldon Natenberg – Option Volatility & Pricing: Advanced Trading Strategies and Techniques
Option Volatility & Pricing is one the best-selling books on option trading. In this new updated version “Option Volatility & Pricing” new types of options products are covered as well as innovative new trading strategies. Sheldon’s book is a mixture of real life trading experience combined with fundamental options theory. A great book for providing an overall framework for making profitable option trades.
#4 Billy Williams – Simple Option Trading Formulas
Simply Option Trading Formulas is a great book for beginner traders. As Williams states within an hour of reading this book you should have a basic grasp of options trading strategies. In this book you will also learn how to maximize your profits from volatility and learn to spot emerging trends in the market. Billy Williams is recognized as an expert in the trading industry and has written for Futures magazine and is a contributor to MoneyMorning.com and Traders.com. Simple Options Trading Formula is a clearly laid out, easy to read and doesn’t presume previous experience or knowledge.
#5 Nicholas Darvas – How I Made $2 Million In The Stock Market
This classic 1960’s memoir details how a penniless Hungarian economist Nicholas Darvas fled the Nazis and made over $2 million trading the stock market by the time he was 39. He achieved this through self-education reading over 200 books on investing and trading combined with the development of his “Box System”. This book has served as inspiration to some of the top options trading legends and should be part of any serious trader’s bookshelf.
Read More in Depth Reviews on our Recommended Options Books