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Top-6 Options Trading Books | Profile Traders

Updated: Aug 29, 2021

Anyone can generate some constant returns every month through options if they have an open mind to understand the basics of options.


Surprisingly most traders deploy only 'call buy' or 'put buy' strategies which have only 33.3% winning probabilities in trading.


I have seen many successful options traders who continuously generate profits with simple options strategies by taking the time decay (theta) parameter in their favor. The introduction of weekly options in Indian markets helped all these traders.


Let's walk through Top-6 books on options trading to explore the basics of options trading, options trading strategies, and techniques to deploy in 2021 markets.


Best Options Trading Books for Beginners in India 2021 - profiletraders.in


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The Options Playbook


Author – Brian Overby


Usually, many options trading books explain some options strategies at the surface level. However, this book provides an in-depth explanation of each strategy's options strategies and different perspectives.


This book starts with an overview of definitions and what types of options (calls/puts) are suitable for various kinds of traders. But it stands out with a detailed explanation of each strategy and which kind of trader should consider any strategy.


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 person understand the concepts in a better way.


Usually, a payout diagram is mandatory to understand the various characteristics of an option strategy, and this book serves the purpose wonderfully well.


Besides, it also explains with apparent bullet points regarding trade setup, who should opt for it (beginners or experts), in which market conditions to run it (bull, bear, or sideways), and the possible outcome of a strategy.


The only drawback of the book it covers many strategies which demand significant capital. Otherwise, it is a beautiful book for every options trader!


(paid link)



Options Trading Crash Course


Author - Frank Richmond


This is a simple options guide for beginners. It is very short, simple, and precise with its explanation of some vital options strategies.


The exciting aspect of the book is that the author has made every important minute topic a separate chapter. For example, an individual chapter for 'Volatility,' 'Strike Price selection,' 'Time Value,' etc.


It starts with the basic concepts of options and explains why a trader should look to trade in options when they have the choice of trading in other instruments (equity and futures).


It breaks down everything an investor needs to know on options trading and to generate some constant returns from their portfolio.


The only drawback is that it would have been a little longer. However, so many people like the narration, understand the concepts clearly; by the time they are eager to learn more, this book makes an ending.


But it is a definite one-time read book if you are a beginner, or if you lack a basic understanding of options, or if you have not convinced why a trader should try options trading.


(paid link)



Definitive Guide to Advanced Options Trading


Author – Rohit Katwal


Many options traders deploy only non-directional trading strategies, and they rely upon firefighting techniques to manage their positions if something goes wrong.


Firefighting is an excellent technique to manage and save our positions if the price moves in the opposite direction as compared to our original prediction.


But firefighting should be kept as a last resort because for two reasons – 1) It brings a lot of emotions and 2) A tiny mistake can wipe out the entire capital.


So it is always better to use some technical analysis concepts to decide the direction and magnitude of the underlying instrument to take the options trade (directional strategy).


In this book, the author has used many such technical concepts to decide the direction of the underlying instrument and along with some firefighting examples, making this book a lethal combo for Indian traders.


It is a must-read book if you are a trader based in India and interested to trade in options!


(paid link)



Options Trading for Dummies


Author – Joe Duarte


Undoubtedly it is one of the popular books on options trading for many years. The new version of the book contains many new chapters to explain the recent dynamic behaviors of the market along with updated charts, statistics, and strategies.


It has well-organized content and explanation, even for a person with the knowledge of technical analysis. It helps a person to pick the right strategy for him with the help of a description of the costs and benefits of each strategy.


The title may be confusing for some people. But it is a wonderful book if a person has a basic understanding of technical analysis.


However, it may not be suitable if a person is new to the stock market (in fact, options trading itself is not suitable for novice people).


(paid link)



The Option Trader's Hedge Fund


Author – Dennis A. Chen and Mark Sebastian


What will happen if a ‘hedge fund manager’ and an ‘options trading coach’ work together? The outcome is this beautiful book which shows how to earn steady yet reliable income using options selling strategies.


This book is packed with many real-world examples to demonstrate how to create your own small hedge fund by applying the basic framework model of the insurance companies. It is a feast for any trader who has the basic knowledge of options and wants to earn constant income.


It is the first book that addresses the issues of risk management for traders who hold a portfolio of options.


The motto of the book is simple – if a trader is interested in constant income from options, then he needs to consider his options portfolio as a business.


Both the authors are apparent with the concepts and demonstrated their knowledge throughout the book.


The only drawback of the book is its quality content. A beginner might face difficulties in understanding all the concepts. Otherwise, a must-read book for all the traders who love options!


(paid link)



Trading Option Greeks


Author – Dan Passarelli


Options Greeks include the different parameters which affect the options premium. For example, 'Delta' indicates the options' price sensitivity in relation to changes in the underlying instrument's price.


The author went deep inside all these Options Greeks and explained how to take advantage of these parameters in trading.


The slight drawback of the book is its selection of the topics. Only experienced options traders like the content of the book. Beginners and intermediate-level traders might struggle to understand all the essence of the book.


(paid link)


I hope you liked the above list of good books on options trading.


Did I miss any other good on options trading? If yes, please comment below.


Disclosure - We are committed to researching, in detail testing, and recommending only the best products. As an affiliate partner, we may receive commissions from purchases made after visiting links within our content (at no extra cost to users).


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