If you’re new to options trading, books are your best friends.
Why?
Well, options trading books will teach you strategies, decode jargon, and help you avoid costly mistakes-all without risking a dime.
That is, if you read the best options trading books.
With so many books out there, how can you know where to get started?
We’ve got you covered.
Below, we’ve curated 20 essential options trading books that cater to beginners, intermediates, and even seasoned traders looking to sharpen their skills.
Let’s get started!
1. Options as a Strategic Investment by Lawrence McMillan
Dubbed the “bible of options trading,” this 1,000+ page guide covers everything from basic strategies to advanced techniques like hedging and volatility trading. McMillan breaks down complex concepts with real-world examples.
You’ll learn how to minimize risk, trade index options, and apply tax laws to options profits/losses.
Buy this options trading book on Amazon.
2. Option Volatility and Pricing by Sheldon Natenberg
A must-read for understanding how volatility impacts options pricing. Natenberg explains theoretical models and risk management in plain language. This book is one of my personal favorites.
You’ll learn the fundamentals of volatility, option pricing, and strategies for different market conditions.
Buy this options trading book on Amazon.
3. Trading Options Greeks by Dan Passarelli
This book demystifies the “Greeks” (Delta, Theta, Vega, Rho) and shows how they drive option prices. Passarelli uses real-world examples to simplify advanced concepts.
You’ll learn how to use Greeks to evaluate pricing, manage risk, and spot profit opportunities.
Buy this options trading book on Amazon
4. The Options Playbook by Brian Overby
Overby outlines 40+ strategies for bulls, bears, and everyone in between. The book uses visual aids and plain English to explain complex tactics.
You’ll learn how to execute strategies like covered calls, straddles, and iron condors with confidence.
Buy this options trading book on Amazon
5. Trading Options For Dummies by Joe Duarte
A beginner-friendly guide that covers basics like buying calls/puts and managing risk. Duarte keeps the tone light and jargon-free.
You’ll learn how to trade options on stocks, ETFs, and indexes, plus tips for sideways markets.
Buy this options trading book on Amazon.
6. Understanding Options by Michael Sincere
Sincere breaks down options trading into bite-sized lessons, focusing on practical application over theory.
You’ll learn key terminology, basic strategies, and how to avoid common beginner mistakes.
Buy this options trading book on Amazon.
7. The Option Trader’s Hedge Fund by Mark Sebastian & Dennis Chen
Learn how to run your options trading like a hedge fund. The authors provide a step-by-step blueprint for generating steady income.
You’ll learn portfolio management, risk mitigation, and how to profit from selling options.
Buy this options trading book on Amazon.
8. Options Trading Crash Course by Frank Richmond
A quick-start guide for impatient beginners. Richmond skips fluff and dives into actionable strategies.
You’ll learn strike price selection, volatility basics, and time decay.
Buy this options trading book on Amazon.
9. Fundamentals of Futures and Options Markets by John Hull
A textbook-style primer on derivatives, futures, and options. Hull’s explanations are clear but best suited for patient readers.
You’ll learn pricing models, swaps, and how interest rates impact options.
Buy this options trading book on Amazon.
10. Profiting with Iron Condor Options by Michael Benklifa
Focused solely on iron condors, this book teaches a low-risk strategy for consistent monthly income.
You’ll learn how to set up, manage, and adjust iron condor trades.
Buy this options trading book on Amazon
11. Options Made Easy by Guy Cohen
Cohen simplifies options trading with visual charts and straightforward advice. Perfect for visual learners.
You’ll learn how to read options chains, spot trends, and use technical analysis.
Buy this options trading book on Amazon
12. Get Rich with Options by Lee Lowell
Lowell shares four proven strategies for earning consistent income, including selling covered calls and credit spreads.
You’ll learn how to profit in sideways markets and reduce portfolio risk.
Buy this options trading book on Amazon.
13. Positional Option Trading by Euan Sinclair
A deep dive into advanced strategies for experienced traders. In this options trading book, Sinclair focuses on exploiting market anomalies.
You’ll learn quantitative analysis, arbitrage opportunities, and persistent market inefficiencies.
Buy this options trading book on Amazon.
14. Options, Futures, and Other Derivatives by John Hull
A heavyweight academic resource used in finance programs worldwide. Not for the faint of heart!
You’ll learn advanced pricing models, swaps, and the math behind derivatives.
Buy this options trading book Amazon.
15. INTRINSIC: Using LEAPS to Retire Early by Alan Ellman
Ellman explains how to use Long-Term Equity Anticipation Securities (LEAPS) to build wealth over time.
You’ll learn leveraging long-term options for retirement planning and compounding gains.
Buy this options trading book on Amazon.
16. Options Trading QuickStart Guide by ClydeBank Finance
A concise introduction to options basics, ideal for total beginners.
You’ll learn calls vs. puts, option chains, and simple strategies.
Buy this options trading book on Amazon.
17. Covered Calls for Beginners by Freeman Publications
Focused on one strategy: selling covered calls. This options trading book emphasizes safety and steady income.
You’ll learn how to generate monthly income from stocks you already own.
Buy this options trading book on Amazon.
18. Options Trading: The Bible (4 in 1) by Carl J. Merrill
Four books in one! Merrill covers basics, advanced strategies, psychology, and passive income tactics.
You’ll learn a holistic approach to trading, including mindset and risk discipline.
Buy this options trading book on Amazon.
19. Trading Options as a Professional by James Bittman
Written for aspiring pros, this book teaches disciplined trading and advanced order types. You’ll learn synthetics, dividend pricing, and how to predict market behavior.
Buy this options trading book on Amazon.
20. Options Trading I: The Best Practical Guide for Beginners (Anonymous)
A crash course in options basics, with a focus on building confidence through real-life examples, you’ll learn key terms, Greeks, and how to calculate profits/losses.
Buy this options trading book on Amazon.
How to Choose the Right Options Trading Book
Now that I’ve broken down my list of books, how can you choose the best ones to read for yourself? Here’s a few tips.
- Beginners: Start with Trading Options For Dummies or The Options Playbook.
- Intermediate Traders: Dive into Trading Options Greeks or The Option Trader’s Hedge Fund.
- Advanced Strategists: Explore Positional Option Trading or Options, Futures, and Other Derivatives.
Final Thoughts
Whether you’re practicing in a simulator or ready to trade live, these options trading books will give you the knowledge to make smarter decisions.
Pick a few that match your goals, take notes, and revisit them as you gain experience.
Remember: even the pros keep learning, because it’s education that can help you make the most profitable trade yet.