October 27, by Steve. I have had many traders asking me for my top option book picks over the years so I thought it would be a great blog topic. In my journey through reading hundreds of trading books these are my favorite 10 that benefited me the most in my option education over the years. After looking through my home library these are my top 10 picks. Show Me Your Options! I wrote this book for the stock trader trying to transition over from trading stocks to options as smoothly as possible.

The option lessons are imbedded in a story narrative on a social media platform. This is a great place to start learning option pricing structures and option strategies. Get Rich With Options While the publisher chose an aggressive title for this book it does lay out four good option trading strategies. Selling puts on stocks that you want to own at lower prices anyway, option credit spreads, selling covered calls to create income on long term holdings, and my personal favorite: Very few ever discuss the power of buying deep-in-the-money call options where you control the full upside of a stock for less risk and with far less capital.

The Bible of Option Strategies This is the encyclopedia of option strategies.

You get a description of each strategy along with specific metrics for each one and the steps in creating it, the rationale to trade it, if it is net debit or credit, the effect of time decay on the strategy, appropriate time period, selecting the right stocks and options, risk profile, the Greeks, the advantages and disadvantages and how to best exit the trade.

This book is meant as a reference book but I read it through cover to cover. He simplifies many strategies to make them understandable especially playing long strangles and straddles through earnings by betting on actual post earnings volatility being greater than the volatility that is priced in to the options through Vega.

Amazon Best Sellers: Best Options Trading

Trading On Corporate Earnings This is a great book on how to best play holding through earnings announcements by using options instead of stock. The Option Traders Hedge Fund This book shows the reader how an actual hedge fund operates for profit using options to generate income much like an insurance company does by selling policies.

Great analogy and interesting perspective. Generate Thousands In Cash on Your Stocks before buying or selling them This book is one of a kind in explaining how to generate income in selling options and also how to continually navigate option plays by adjusting positions by selling new options to offset current holdings. It is a different perspective and an interesting read.

The Hidden Reality This book is like taking the red pill and entering option matrix but you have to be ready to understand it by fully grasping the option Greeks to fully appreciate it. The beauty of this book is how he explains the parallel risk structure of options that most never grasp. One example is that selling a covered call and selling a naked put is virtually the same thing.

In both plays you receive a small premium for taking on the entire downside risk in the stock. A Winning Combination This book is a great example of a simple robust trading strategy that wins in the long run through selling premium on both the long and short sides of a trade and letting the efficiency of implied volatility work in the option sellers favor. This book shows the historical long term double digit returns.

But, alas this is no Holy Grail it is a profitable system when actual volatility is not more than two times implied volatility and while the SPY ETF has slower move on a percentage basis in most market environments during higher market volatility this system will lose and with no hedges in place the losses could be substantial like Black Monday , the Fall of , and the day of the flash crash.

It is a great introduction on how to sell option premium for profit by using short strangles and managing the position if it does move against you. It is a great primer for those that want to be a high probability winning option seller. Option books , Stock Options , trading books Tagged With: How do I trade options , Top Ten Books on Options , What are teh best boosk on stock options , What books should I read on options. By Steve Burns and Holly Burns. Learn five winning and backtested trading systems that beat buy and hold investing.

Steve goes step-by-step, showing the results of 16 years worth of backtested results of some of the most popular moving average signals so you can see how to get in, when to get out, and how to use backtesting to your advantage! After a lifelong fascination with financial markets, Steve Burns started investing in , and trading his own accounts in It was … Read More.

If you've been thinking about advertising on Twitter, Steve is your guy! With more than 70, dedicated followers, Steve has some of the highest … Read More. New Trader U Helping Traders Thrive.

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