Top products from r/options
We found 53 product mentions on r/options. We ranked the 68 resulting products by number of redditors who mentioned them. Here are the top 20.
1. Options as a Strategic Investment: Fifth Edition
Sentiment score: 5
Number of reviews: 10
Prentice Hall Press
3. Dynamic Hedging: Managing Vanilla and Exotic Options
Sentiment score: 2
Number of reviews: 4
4. Option Volatility & Pricing: Advanced Trading Strategies and Techniques
Sentiment score: 1
Number of reviews: 4
5. Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition
Sentiment score: 1
Number of reviews: 3
6. Option Market Making: Trading and Risk Analysis for the Financial and Commodity Option Markets
Sentiment score: 1
Number of reviews: 2
8. The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets
Sentiment score: 1
Number of reviews: 2
10. The Only Options Trading Book You'll Ever Need: Earn a steady income trading options
Sentiment score: 3
Number of reviews: 2
12. The Option Trader's Hedge Fund: A Business Framework for Trading Equity and Index Options
Sentiment score: 0
Number of reviews: 1
Used Book in Good Condition
13. Option pricing and strategies in investing
Sentiment score: 1
Number of reviews: 1
14. Fundamentals of Futures and Options Markets (9th Edition)
Sentiment score: 1
Number of reviews: 1
15. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies (2nd Edition)
Sentiment score: 0
Number of reviews: 1
16. Options, Futures, and Other Derivatives (9th Edition)
Sentiment score: 0
Number of reviews: 1
17. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies
Sentiment score: 0
Number of reviews: 1
18. The Complete Guide to Option Selling: How Selling Options Can Lead to Stellar Returns in Bull and Bear Markets, 3rd Edition
Sentiment score: 0
Number of reviews: 1
McGraw-Hill
Cool, learning is good. I’m a reader, I recommend picking up a book (fairly up to date one, at least one that was written post-internet era and is still generally applicable in the way option orders work, as it’s certainly different than what a book in the 80s would have said, if there was one). Choice is up to you, search the sub for “recommend books” or something similar and you’ll see plenty of suggestions.
IF you’re a reader, I say go for a book, you’ll read when you wouldn’t be looking online. Also, a good book already sold you, you bought it, and so it pushes no agenda, and the authors is incentivized by sales to have the most informative book, especially in the current retail market where people likely put equal or greater trust in strangers’ Amazon reviews than the vestiges of how it used to be pre-amazon and yelp, ie consumer reports, industry/hobbyist magazines, and word of mouth. I don’t know who the go to for book reviews was, I’m guessing NYT always ran a book critic column, and perhaps trading mags would have reviewed some. Big, needless tangent I’m writing here, but what a change. Anyway, point being, an author should generally just be out to be helpful as good reviews will drive sales. Free books (or even worse, this “Apiary fund” which is really a ‘school’ built to sap you money. See below for a note on the subject) are.not to be trusted, the adage there’s no such thing as a free lunch is pretty much always applicable to investing. Nobody is giving away trade secrets for free.
If you are tempted by a class of some sort, ideally look for something in your town or city that does community adult education. Generally it’ll be $10-50 for this sort of thing, depending on the length. The idea being, community centers and non profits are not trying to squeeze your money, so not only is the lesson cheap, it’s centered on teaching, not selling. Many “free” classes advertised (You’ll see RE investing most commonly, though no doubt people do it for options) are really excuses to get you in a room where you feel trapped and give you the hard sell. Usually some variation of, here’s a tiny bit of info, now to get the real secrets just pay $5000 for this week course, or something similar. Avoid these like the plague, they have no wisdom to offer and just want your cash.
Similar to community adult ed, university related classes also have no hidden agenda, so if you find an options course you could audit or mmmmm or something, you could go for it. I didn’t go to business school or major in economics or anything so I don’t know if they have whole classes on options, but perhaps at least one that covers the market along with options, maybe even futures.
But time-wise, you’ll get the info quickest reading online or reading a book, and you’ll learn quickest by doing, no amount of reading will prep you or teach you as trading will. But you want at least a good background.
For books, I can only recommend from what I’ve read. I’ve read I think 4, 2 stood out:
Understanding Options Ed. 2E by Michael Sincere. It’s not a very complicated book, it’s not teaching you ICs and jade lizards, but it gets you all the basics you need to ask smart questions.
The Only Options Book You’ll Ever Need by Russell Stultz, is my favorite. It starts simple, covering everything the simpler book does, and builds on that. It’s nicely out together for progressive learning, and if you read both, the first book you could eat in a day, and by the 4th chapter or so you’ll be ready to start trading. Then keep reading, since if you go too far with zero experience it’ll not actually stick.
Or, use the help bar here and its resources, the CBOE has great online teaching resources, as does Tastytrade, and others.
Hope that helps steer you in the right direction- good luck!
not OP but I thought about writing a post with more info on each book / recommendations / best summaries.
I don’t know how I knew. Maybe you have a youthful and optimistic writing voice.
I’m 37, and I actually manage money for a living as an RIA (registered investment advisor). If you’re unsure about a career for yourself, I’d highly recommend it. Someone only 20 years old with your expertise would have no trouble getting into the business and be very successful.
Using Bitcoin or any hard currency as opposed to fiat adds immeasurable value to society. Read “The Bitcoin Standard” by Saifedean Ammous and your perspective will be expanded
https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861 and buy
And get a copy of the reference tome: Options as a Strategic Investment
https://www.amazon.com/Options-as-Strategic-Investment-Fifth/dp/0735204659
And your investment game will be better than most advisors by the time you’re 22. That’s the best advice I can give👊
So, I'm not sure these are what you're looking for, because they're basically written by viewers of tastytrade to distill what they've learned from the show. In other words, if you're looking for a different perspective or an independent confirmation of the methodology, this ain't it, but if you just want the tastytrade principles in book form, you might find them useful.
By Dr. Russell Richards:
By Tony Rihan (he calls in as "Tony from Mexico City" if you're familiar with the show):
Edit: Also, for websites, the Option Alpha podcast / blog / service seems to be of the same vein.
Here are a few I liked.
On the easy side but very thorough, good for starting:
Options as a strategic investment, Lawrence McMillan
https://www.amazon.com/dp/0735204659/ref=cm_sw_r_em_apa_i_0IfLDbZYQ3Z67
Focusing on market making:
Option market making, Allen Baird
https://www.amazon.com/dp/0471578320/ref=cm_sw_r_em_apa_i_WPfLDbTZ0C15B
Harder but good stuff:
Volatility Trading, Euan Sinclair
https://www.amazon.com/dp/1118347137/ref=cm_sw_r_em_apa_i_zKfLDbQ0KSEPG
I think the free Excel sheets that are included in this book can be used for EV of multi legged positions. If not the Kindle book is only $3 and one of the better intro options books I have seen: https://www.amazon.com/Trade-Options-Edge-Russell-Richards-ebook/dp/B07965CMXC/ref=sr_1_1?keywords=russell+richards&qid=1572094506&sr=8-1
I rather explore the approach to trade before earnings and sell it before the announcement. It doesn't matter which direction the stock moves, you profit from the rising implied volatility. After earnings are announced, volatility collapses and many trades become unprofitable.
Start with reading this book by Jeff Augen to understand how it can be done.
With AMZN, I find that selling calendar spread before earnings are a more profitable and consistent trade.
The most important setup is position size. Always allocate many small trades and don't let greed increase the weight on a single position. Options is about probabilities, so consistency in execution is paramount to succeed overtime.
Don't blow up. Learn how to price your options. TastyTrades has lots of great tutorials. For books I recommend Taleb's Dynamic Hedging: Managing Vanilla and Exotic Options https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803
Please read this before continuing.. its a good crash course. You will murder your account and profits without these core understandings. Remember chinese news and information trump charts. Great first win!
Understanding Options 2E https://www.amazon.com/dp/B00GWSXX8U/ref=cm_sw_r_cp_api_i_.vkDCb9PTYHH7
Options as a Strategic Investment was recommended to me as a good book to build an Options foundation on. I'm still working through it but so far, I have to agree. It covers the different strategies in detail. Giving you the what, why, and when to use them.
I thought this book was really good: https://www.amazon.com/Understanding-Options-2E-Business-Books/dp/0071817840
Also, watch all the videos and read all the links that are associated with options on Investopedia.com. Its a great resource.
www.cboe.com has some great tutorials.
A book I often refer to can be found on Amazon:
https://www.amazon.com/Options-as-Strategic-Investment-Fifth/dp/0735204659/ref=sr_1_1?crid=R4LJ2GU5HQ2Y&keywords=options+as+a+strategic+investment+6th+edition&qid=1573349119&sprefix=options+as+%2Caps%2C163&sr=8-1
https://www.amazon.com/Rookies-Guide-Options-Beginners-Handbook/dp/193435404X
This goes over all of the basic trades. How to enter and exit. And how to make adjustments. It’s a little long winded but very informative.
https://www.amazon.com/Understanding-Options-2E-Michael-Sincere/dp/0071817840
This is less wordy and covers the same topics. However it is less informative than the rookie book. Probably good to start here and then read the rookie book.
https://www.amazon.com/Only-Options-Trading-Book-Youll/dp/1945390115
I bought this book a couple years ago and i learn a lot from it and made a lot off the things I learned in that book. I would highly recommend. Depends on your level of options knowledge but im sure you will learn something.
Not just about vol trading but the ultimate option bible "Option Volatility and Pricing: Advanced Trading Strategies and Techniques" by Natenberg. Might be a little bit more broad than what you're looking for but this book is phenomenal. Was recommended to me by an option trader at a BB.
https://www.amazon.com/Option-Volatility-Pricing-Strategies-Techniques/dp/0071818774
Honestly I would say read a book on it. Use your notepad, your highlighter, make tabs, the works. Read it and then read it again.
I used this
Don’t buy a seat at the table if you’re going to bet on a losing hand.
I haven't had a chance to give either a read but I've seen it recommended enough that I'll send it your way. Have you looked at either Fundamentals of Futures and Options Market or Option Volatility and Pricing: Advanced Trading Strategies and Techniques? Maybe that's the more of what you're looking for.
This book is very good for beginners.
https://www.amazon.com/Options-as-Strategic-Investment-Fifth/dp/0735204659/ref=sr_1_1?ie=UTF8&qid=1527461946&sr=8-1&keywords=options+as+a+strategic+investment+6th+edition#customerReviews
If you're just beginning, my personal favorite is "Understanding Options" by Michael Sincere.
This website is a good source of higher level information:
Cfapubs.org
This book helped me:
https://www.amazon.com/gp/aw/d/0071818774/ref=mp_s_a_1_1?ie=UTF8&qid=1523193422&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=option+volatility+and+pricing&dpPl=1&dpID=51RxE6P0LkL&ref=plSrch
Dynamic Hedging
https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803
Richard Bookstaber
https://www.amazon.com/gp/offer-listing/0201001233/ref=sr_1_fkmr1_3_olp?s=books&ie=UTF8&qid=1526365805&sr=1-3-fkmr1&keywords=bookstaber+on+options
Nassim Taleb
https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803/ref=sr_1_1?s=books&ie=UTF8&qid=1526365899&sr=1-1&keywords=taleb+options
I'd start with Bookstaber first. Yeah the book is "old" but the basic concepts are the same. Taleb gets more into all the Greek gunk
[http://www.amazon.com/Options-Strategic-Investment-Lawrence-McMillan/dp/0735204659/]
[http://www.amazon.com/McMillan-Options-Lawrence-G/dp/0471678759/]
[http://www.amazon.com/Profiting-Iron-Condor-Options-Strategies/dp/0134394607/]
[http://www.amazon.com/Option-Strategy-Risk-Return-Ratios/dp/0692028293/]
Those will give you 90% of what you need to know. There are a lot of books out there, the more you read, the more you learn. I have a library of 100+ books like these.
I'd recommend this book:
http://www.amazon.com/Intelligent-Option-Investor-Applying-Investing/dp/007183365X/ref=sr_1_1?ie=UTF8&qid=1458708610&sr=8-1&keywords=intelligent+options+investor
Sheldon Natenberg.
If you code, then write an option pricing calculator and play with it.
That guide lists some amazing books but weirdly it doesnt mention the "options Bible" which will teach You everything You look for.
Options, Futures and other financial derivatives - John Hull
https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315
Plenty of pdfs online as well
This book lists each of the various options strategies, explaining who should do each one (experience level) and how to do each one (giving examples of when to buy each part):
Bible of Options Strategies
There is a newer edition that I haven't read, my guess is that this older one will work fine for half the price.
Amazon pointed out that there's a newer edition available.
RTFM before you buy. Chapter 25
https://www.amazon.com/Option-Volatility-Pricing-Strategies-Professional/dp/0071818774/ref=zg_bs_2672_3?_encoding=UTF8&psc=1&refRID=349CSEGTX0DJYR7A26SW
https://www.amazon.com/Option-Market-Making-Financial-Commodity/dp/0471578320/ref=sr_1_1?ie=UTF8&qid=1500849945&sr=8-1&keywords=option+market+making
https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803/ref=sr_1_1?s=books&ie=UTF8&qid=1500850029&sr=1-1&keywords=taleb+dynamic+hedging
http://www.amazon.com/Volatility-Edge-Options-Trading-Strategies/dp/0132354691
http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Dstripbooks&field-keywords=volcube
http://www.amazon.com/Complete-Guide-Option-Selling-Options/dp/0071837620/
http://www.amazon.com/Option-Traders-Hedge-Fund-Framework/dp/0132823403
https://www.amazon.com/Options-as-Strategic-Investment-Fifth/dp/0735204659/ref=sr_1_1?ie=UTF8&qid=1502993339&sr=8-1&keywords=options+as+a+strategic+investment
Read this book
https://www.amazon.com/Option-Volatility-amp-Pricing-Strategies/dp/155738486X
Buy and read this book: Understanding Options 2E (Business Books) https://www.amazon.com/dp/0071817840/ref=cm_sw_r_cp_api_I7GIzb6CB2EJ9
I started with Options as a Strategic Investment
edit: formatting
still natenberg
Options as a strategic investment, by Lawrence G. McMillan.
https://www.amazon.com/dp/0735204659/ref=cm_sw_r_cp_apa_i_MWSWDbPJ9H54G
Sir, you need to learn more about options before you begin touching it... I recommend reading Understanding Options 2E. The author presents the topic in very easy to understand language.
Regarding your question, the difference is in risk vs reward. If you were to sell a put spread with a 10 point spread, then you have a maximum loss of $1000. A 20 point spread will give you a maximum loss of $2000. Puts with higher strike prices are value more than puts with lower strike price. As a result, you will earn a lot more premium by selling a wider spread. Let's compare the 190/210 and the 200/210 put spreads. In order to sell a spread, you always short the put with the higher strike price and go long on the one with the lower strike. Both spreads consequently will make you go long on the 210 put. You now have a choice of going short the 190 or 200 puts. Since the 190 put is worth far less, you will actually earn a higher net premium by selling the 190/210 put spread than the 200/210 spread. Obviously this comes with a higher risk.