Plus, it underlines common mistakes that beginners can easily keep at bay. While these books offer profound insights into the theories, strategies, and mechanics of options trading, they are not substitutes for hands-on experience and mentorship. Aspiring traders need to understand that the concepts elaborated in these books can be complex.

Unfortunately, most guides discuss covered call strategies without much rigor – and, more importantly, without ending with an exit strategy. Many people prefer listening to the summary or content in the book and that is why audio books are in much demand. So, if do not find reading a book a good option then here are some of the audio books. The book is a perfect pick for someone who desires to explore the world of options trading.

Real-time option chains can be found on most of the financial websites online with stock prices. These include Yahoo Finance, The Wall Street Journal Online, and online trading sites, such as Charles Schwab. It explains in detail about Open Interest (OI) and how to co-relate OI with futures and options.

• Negotiating happens at both ends until the bid and ask prices start coming closer together.
• As an affiliate partner, we may receive commissions from purchases made after visiting links within our content (at no extra cost to users).
• With some options that do not trade very often, you may find the bid and ask prices very far apart.
• Understanding how market volatility relates to options pricing is key to helping traders evaluate fair values in the options market.
• This book starts with an overview of definitions and what types of options (calls/puts) are suitable for various kinds of traders.

Option Volatility & Pricing – Sheldon Natenberg

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them. On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews. Also, we provide you with free options courses that teach you how to implement our trades as well. Our watch lists and alert signals are great for your trading education and learning experience. Delta, for example, measures how sensitive the options price is to price changes in the underlying security. Likewise, Vega attempts to measure the impact of volatility on price changes.

The Option Trader’s Hedge Fund

• Consequently, his book contains actionable information on swaps and other derivative instruments, trading interest rate futures and strategies for estimating the time value of options.
• This book is best for those who are looking forward to ruling the market by learning to master option trade.
• The author is confident of traders gaining success in the options market with an investment of as low as $50 though it is not a guaranteed approach.
• The author has covered all the major concepts involved in options trading.

The book reveals concepts like non-optional trading, strategies for non-directional trading, and how to use trading techniques to suit your style. The book comprises many charts and illustrations along with real-life examples for better understanding. Now the above-listed books are good and offer you ample knowledge on an options trade. But if you want to learn the concept in the context of the Indian share market then here are a few recommended books written by Indian authors. The author explains how options trading is an art and lists various techniques which allow one to master this art to make huge gains. It gives insight into how the theories are applied to the practical models of pricing techniques.

Option Trading Strategies

On most sites, if you find the chart of the underlying stock, there will be a link to the related options chains. However, so many people like the narration and understand the concepts clearly; by the time they are eager to learn more, this book makes an ending. It breaks down everything an investor needs to know about options trading to generate some constant returns from their portfolio. Surprisingly most traders deploy only ‘call buy’ or ‘put buy’ strategies which have only 33.3% winning probabilities in trading.

The author has penned this book on options traders with stock traders and investors in mind. He has broken down complex concepts into easily digestible content, covering basic strategies, risk management, and market analysis. The book’s practical approach, coupled with Duarte’s engaging writing style, makes it a go-to resource for those new to options trading. Its 1,000-plus pages contain information on specific options strategies and market conditions in which they tend to work best. The book dives deep into using options as a hedge and explains how tax laws apply to option trading profits or losses.

His trading career and work had an emphasis on equity swing trading, day trading and options trading. In his book, he tries to simplify the concept of options and guides your options trading journey from beginner to advanced level. This book on Options Trading is a practical module from start to end, offering guidance on how flexible and advantageous option trading can be. All the major areas which are essential to know while indulging in options strategies have been covered by the author. Fortunately, Brian Overby’s “The Options Playbook” digs deeper into each strategy’s options strategies and multiple perspectives.

If you wish to learn about options trading from the start then this book is perfect for you as each concept has been covered thoroughly. Explore new options strategies for investment management via non-equity option products and listed options. It helps you learn how to enhance your portfolio’s earning potential with market-tested tools. For example, if you buy a call option with a current strike price of $35 and the market price is $37.50, the option already has an intrinsic value of $2.50. Intrinsic value is merely the difference between the strike price of an option and the current stock price.

Option Chain Analysis: The CT Scan of Derivative Market Paperback – June 28, 2021

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit.

Options Trading: Quick Start Guide

If you are thinking of beginning options trading, Options as a strategic investment is a must-read for you. The book is marked to be one of the best option chain analysis books as it provides you with a directional view of the share market. When you think to get into options trading then it becomes important to know how it works, and how to read the options chain. If an option is out of the money, it means the strike price hasn’t yet crossed the market price.

With no confusing jargon and unnecessary mumbo-jumbo, readers get simple strategies, with their reasoning broken down into a play-by-play format. The author has explained various ways to attain healthy profits via strategies. He also throws light on how to trace patterns and huge opportunities in the market. Overall, this book is a must-read for someone who wishes to explore all aspects of the market. Open interest is important because investors want to see liquidity, meaning there’s enough demand for that option so that they can easily enter and exit a position.

📆 Date: May 3-4, 2025🕛 Time: 8:30-11:30 AM EST📍 Venue: OnlineInstructor: Dheeraj Vaidya, CFA, FRM

But it is a wonderful book if a person has a basic understanding of technical analysis. All the strategies are explained with large images which are easy to read and understand. In addition, there are many handmade notes; simple day-to-day examples are included to explain many strategies that help a novice understand the concepts better. The book entails topics as basic as using objectivity in all investment decisions, improving trade selection, and creating market prediction techniques. If you are a long-term investor, covered call strategies are beneficial in generating cash flows from the stocks already existing in your portfolio.

He serves on various exchange committees and has played a significant role in the evolution of India’s derivative market. He has been a speaker at various colleges and higher institutions, including IIT and IIMs. Natenberg explains how professional traders think and manage risk, making it a great resource for those who want to trade options more effectively. Below is a table that shows the relationship between an option’s strike price and the stock’s price for call and put options. Please note that the term underlying represents the price of the stock that’s being traded through the options contract.