The 10 Best Books on Options Trading - WealthFit (2024)

Options trading is a versatile investing strategy that can be used to help manage your risk exposure, generate income, and pursue other investment goals. With the wealth of information available in books about options trading — the best books on options trading — it's easier than ever to learn how to profit from this investing method.

In this article, we’ll break down the 10 best books on options trading. These options trading books cover everything from the basics of how options work to more advanced strategies like covered calls and iron condors.

If you're looking for the best books on options trading, let’s get started!

Option Volatility & Pricing: Advanced Trading Strategies and Techniques (Second Edition) by Sheldon Natenberg

Sheldon Natenberg is one of the most respected names in the options trading world, and his book — Option Volatility & Pricing: Advanced Trading Strategies and Techniques — is widely considered one of the best books on options trading.

In this options trading book, Natenberg covers everything from options trading basics to more advanced concepts like volatility and option pricing. This book does an excellent job of explaining the foundation of options theory and options trading concepts. It also provides a lot of practical advice, especially regarding risk management techniques.

It’s also a tremendous resource to use when learning more about:

• theoretical pricing models
• option evaluation principles
• creating trading strategies
• dynamic hedging
• volatility contracts

This is why many consider it to be one of the best books on options trading. Overall, this book is perfect for those who want to deepen their understanding of the ins and outs of options trading.

You can buy this options book on Amazon.

The Options Playbook (Expanded Second Edition) by Brian Overby

The Options Playbook is another excellent book for learning more about options trading. This book, written by Brian Overby, covers a wide range of topics related to options trading and even includes helpful information about common mistakes to avoid.

This book is more focused on the practical aspects of options trading, and it provides helpful information for traders. It is considered to be one of the best books on options trading because of how thoroughly it covers certain topics, including:

• understandable option trading strategies
• risk management tips
• how to pick the right option

There is also information that offers detailed instructions on what to do if things do not go according to plan. This book is perfect for those who want easy-to-learn option trading strategies that they can effectively and safely in different market conditions.

You can buy this options trading book on Amazon.

Options as a Strategic Investment (Fifth Edition) by Lawrence G. McMillan

Options as a Strategic Investment is considered one of the classic books on options trading.

This guide is one of the most well-known and trusted books on options trading. This updated version of McMillan's bestselling book contains all the essential information on options trading that you need to know to make intelligent investment decisions with confidence and success.

The update also includes dozens of tested and proven techniques to use when trading many of the new and innovative options products that are now available. This book covers a wide range of topics related to options trading and is packed with practical tips and strategies for getting the most out of your options trades, whether you're a beginner or an experienced trader.

Some of the topics covered in Options as a Strategic Investment include:

• option strategies
• risk management
• how to pick the right option

This book is perfect for those who want to maximize their earning potential while minimizing the downside risks.

You can buy this options trading book on Amazon.

Trading Options For Dummies by (Fourth Edition) Joe Duarte

This popular investing guide is on our list of the best books on options trading because it provides clear and practical guidance on how to trade options successfully, regardless of your experience level or investment goals, making it an easy-to-read book perfect for anyone new to trading options.

Author Joe Duarte gives first-time investors a step-by-step guide to the options trading process from start to finish.

This book is excellent for today's market conditions and shows traders how there is more opportunity for investors to make a profit trading options, regardless of the market conditions.

It covers all of the basics of options trading, including:

• different types of options
• how to choose the right option for you
• how to use technical analysis to execute various option strategies successfully

This book is perfect for traders looking to broaden their retirement portfolio and investors who want to earn extra money with shorter-term positions.

You can buy this options trading book on Amazon.

Options Trading: The Bible (4-in-1) by Carl J. Merrill

Options Trading: The Bible is another excellent options trading book.

This book is a 4-in-1 set that focuses on teaching advanced strategies that even new options traders can comprehend. It teaches new and advanced traders how to make informed investment decisions every time and is easily one of the best books on options trading.

Some of the topics covered in Options Trading: The Bible include:

• field-tested trading strategies
• risk management
• avoiding unprofitable trades
• all of the critical technical definitions every trader should know

This book is perfect for those who want to master the psychological aspects of options trading or those who want an effective crash course in day trading options.

You can buy this options trading book on Amazon.

The Option Trader Handbook (Second Edition): Strategies and Trade Adjustments by George Jabbour and Philip Budwick

Written by two leading options traders, The Option Trader's Handbook is the definitive guide to trading options successfully.

This comprehensive reference stands out on a list of the best books on options trading and covers all aspects, from basic concepts to advanced strategies. This book includes a wide range of helpful information for traders, such as:

• how to choose the best option strategies for your unique trading goals and risk tolerance
• how to manage your trades more effectively
• and more

The authors have presented a convenient guide to help traders master the art of making trade adjustments. Their logical and systematic methods work exceptionally well in today's market conditions.

This book is perfect for intermediate or advanced level traders who want to learn more complex option combinations and spreads.

You can buy this options trading book on Amazon.

The 3 Best Option Trading Strategies for Beginners: The Ultimate Guide by Freeman Publications

This comprehensive guide is packed with practical tips and strategies for starting options trading.

Written by expert traders Freeman Publications, this three-book series covers a wide range of topics related to options trading, including:

• option strategies
• risk management
• how to pick the right option for your trading needs

The series focuses on iron condor options, covered calls, and credit spread options.

While these books are primarily written for beginners, they are considered among the best books on options trading because they contain concepts that even experienced traders can benefit from learning.

This series covers all the critical rules and criteria necessary to generate consistent returns, regardless of market conditions. They help traders create certainty in their results, even in an uncertain market.

These books are perfect for new options traders who want to make extra money in the market using strategies with a historical track record of working consistently over time.

You can buy this options trading book on Amazon here.

Trading Option Greeks (Second Edition): How Time, Volatility, and Other Pricing Factors Drive Profits by Dan Passarelli

In this book, Dan Passarelli teaches readers how to use the options greeks to their advantage when trading options.

It explores how to exploit the dynamics of option pricing to improve your trading results. The options greeks are a set of parameters that describe the risks and rewards associated with various option strategies.

By understanding how these factors affect the price of options, traders can make more informed and successful investment decisions.

Whether you are new to options trading or a seasoned expert, Trading Option Greeks is an essential resource that will help you improve your skills and manage your trading account more effectively.

As one of the best books on options trading, it should be in the hands of any serious trader.

This book is perfect for options traders who want a practical approach to finding option trades, managing them, and maximizing their overall profits.

You can buy this options trading book on Amazon.

Understanding Options (Second Edition) by Michael Sincere

Understanding Options is a comprehensive guide that provides clear and practical advice on trading options successfully.

From start to finish, author Michael Sincere covers all of the basics of options trading, including:

• choosing the right option for your trading needs
• managing risk effectively
• overcoming assignment anxiety
• executing various options strategies

This is one of the best books on options trading because it is a bestselling book and is complete with updated statistics, charts, and strategies that work well in the current market conditions.

If you are new to options trading or simply looking to improve your skills, this book is an excellent resource to help you achieve your goals.

This book is perfect for trading looking for an easy-to-understand guide covering long-term and short-term option trading strategies.

You can buy this options trading book on Amazon.

The Annual $25,000 Options Trading Challenge (Second Edition) by Nishant Pant

This book helps traders create strategies and money management techniques that build results that are protected from the massive loss a market correction may cause.

The premise of this fascinating book is to take an options trading account and generate a 10x return within 12 months.

This remarkable options trading resource helps traders determine the perfect options trading entry point. It is best known for teaching a strategy that allows traders to double their money repeatedly.

For this reason alone, many experts consider this to be one of the best books on options trading.

The secret to the challenge is mastering leverage and technical analysis to create repeatable option trading results. This book is perfect for options traders of any experience level who want a no fluff, straightforward guide that covers a few simple methods that generate consistent and repeatable results in the options trading market.

You can buy this options trading book on Amazon.

Why Read These Best Options Trading Books? 5 Reasons

Reading the best option trading books is a great way to learn about the market and how to trade options. However, with so many different books available, it can be tough to know which ones are the best books on options trading and worth your time reading. Here are five reasons why reading option trading books can be beneficial:

• You can learn from the experts.
• You can get an inside look at different trading strategies.
• You can stay up-to-date on the latest trends in the market.
• You can develop a deeper understanding of how options work.
• You can improve your trading skills and gain confidence in your abilities.

The Bottom Line: Best Books on Options Trading

Trading options can be a great way to make money, but they can also be very risky.

That is why it is crucial to learn as much as possible about options trading before deciding to invest your money.

These best books on options trading can improve help you maximize your profit while minimizing your risk.

Whether you’re a beginner or a more experienced trader, there’s bound to be a book on this list that can help you improve your skills. So what are you waiting for? Start reading and learn how to trade options like a pro!