Best Books On Options Trading – The 10 Top Picks

Options trading is a type of trading that happens in the options market. An option is a contract that gives a buyer the right to buy or sell the asset at a specific price before a deadline. These options are then used to speculate, predict income, and minimize risk.

Many prefer options trading to stock trading since options traders can profit from a wide variety of stock market outcomes. Not only that, but options trading can be accomplished with limited risk. To find out if options trading is the right way for you to make a profit, read up on what the experts have to say, and how they’ve succeeded from trading options. We’ve done the research to find you the best books on options trading.

Best Books On Options Trading

Before you dive into the options trading world, it’s important to have thorough knowledge. Below are the top 10 books on options trading that can help you prepare to gain profit.

1. Option Volatility and Pricing by Sheldon Natenberg 

Option Volatility and Pricing remains among the most read books among active options traders from all around the world. In fact, it has just been updated to reflect the most current developments and trends in option products and trading strategies. Written with the utmost clarity, this book demonstrates how you can possess the critical essentials to successful trading.

Drawing on his experience as an expert trader, Sheldon Natenberg examines popular theories and their relation to the reality of options trading. While reviewing a wide variety of trading strategies, he makes it easy for the reader to decide which one will suit them best on their road to trading success.

2. Options as a Strategic Investment by Lawrence G. Mcmillan

This revised 5th edition of the best-selling book Options as a Strategic Investment provides the reader with the latest market-tested tools for improving earnings potential and downsizing risk. No matter how the market is performing, Mcmillan is here to teach you how to maximize success. This book is perfect for investors who have familiarity in the options market and are looking to step up their game.

In this, Lawrence G. Mcmillan goes into buying and selling strategies, a comprehensive overview of futures, and detailed guidance for investing. 

3. The Options Playbook by Brian Overby

The Options Playbook was created to demystify options trading and teach investors a variety of option plays depending on market conditions. By reading this, you’ll be more confident options trading and have the skills to predict market behavior. In this, Brian Overby explains the 40 most popular options strategies and how you can get to action.

For the first time options trader, this book will teach you how to understand the market, avoid common beginner’s mistakes, and start experimenting right away. 

4. The Option Trader’s Hedge Fund by Dennis A. Chen and Mark Sebastian

In this book, hedge fund manager and option trading coach Chen and Sebastian show you how to create a steady income from options trading. You’ll learn how to manage your trades and run your options portfolio as a real business. To put it simply, this is the perfect business framework for trading equity and index options.

By reading this, you’ll be able to apply your option trading strategy to a steady, predictable business model with consistent returns. If you’re looking to manage an options-based portfolio the right way, this is the book for you. 

5. Understanding Options 2E by Michael Sincere 

Understanding Options 2E is the options trading best-seller of the modern age. Created to suit today’s turbulent market, this book offers relevant advice for all options traders. Written straightforwardly, Michael Sincere’s advice is perfect for anyone looking to start on the right foot in the increasingly popular options market.

This book covers everything for new and experienced options traders. This is the perfect book for you to read before you start options trading to get insight on updated facts, helpful charts, and critical strategies for success. 

6. The Bible of Options Strategies by Guy Cohen

The Bible of Options Strategies is the definitive guide for practical trading strategies. In this, well-known options trader Guy Cohen presents today’s most effective strategy for options trading. He goes over how and why they work, when they’re appropriate, and how to use each option with confidence.

When it comes to taming the complexity of options, this is the book to have right by your side. Cohen has been praised for his easy-to-understand explanations, making sure that options traders are set to gain profit within their first few months of trading. 

7. The Only Options Trading Book You’ll Ever Need by Russel Allen Stultz

In this world-wide options trading classic, Russel Allen Stultz explains how to create a steady income from trading options. By following Stultz’s trading rules and options strategies, many readers have claimed to have quadrupled their brokerage account in less than two years. This book explains helpful strategies and expands on how you can implement them.

In addition to modern option trading strategies, this book elaborates on trade management techniques, strategy goals, and profit and stop-loss recommendations. 

8. Get Rich With Options by Lee Lowell

In Get Rich With Options, Lee Lowell goes into his four winning strategies straight from the exchange floor. In this detailed guide, you’ll learn how to trade stock and commodity options successfully. From the options market-maker himself, Lee Lowell provides you with key strategies that he’s learned from his time in the New York Mercantile Exchange.

This book provides you with the actionable expert advice that you need to achieve optimal results in the options market. Lowell explains how to set up a home-based options trading business, use options as a speculating instrument, and utilize the best options for trading strategies currently available. 

9. Getting Started in Options by Michael C. Thomsett

Getting Started in Options is an easy-to-read, illustrative guide of the complex world of options investing. Due to its complexity and potentially high-risk, many shy away from the opportunity to invest in options. Thankfully, Michael C. Thomsett’s proven strategies for success will set you up to gain profit in no time.

He’ll teach you how to make informed, profitable decisions, distinguish the real risk from the imagined threat, and maximize success in the end. 

10. The Ultimate Options Trading Strategy Guide for Beginners by Roji Abraham

If you’re looking to make a steady monthly income from trading options, this is the guide made for you. In this trading strategy guide, Roji Abraham explains the basics of options trading and six underutilized strategies that will help you profit. As Roji Abraham warns, if you go into options trading with insufficient knowledge, you will hit lots of risk and losses in the end.

Luckily, this guide was created to help you avoid common mistakes and stay afloat while options trading.

Final Thoughts: Best Options Trading Books

All in all, options trading is a great, unconventional way to get profit by trading in the market. That said, it isn’t widely popularized to the point where all investors know about options trading—reading up about how to start and utilize proven strategies for success is a great way to gain a steady income from trading options. 

If you’re looking to learn more about trading you can also consider a trading course, such as Steven Dux’s Trading Techniques or Tim Grittani’s Trading Tickers. Gain all the knowledge you need and become a great trader!