Hi all,
I want to learn more about option trading. And since in trading there are always a dozen 'do-this-and-get-rich-quickly' shitty books I need your advice on some decent literature about option trading!
Any tips?
Thanks!
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Greetings Ted! I will pass on 2 that my bro has passed on to me. Sheldon Natenberg - Option Volatility and Pricing. Anthony Saliba - Option Workbook.
Option Trading: Pricing and Volatility Strategies and Techniques by Euan Sinclair Dynamic Hedging by Nassim Taleb
How much do you know to start? You should get the basics down first, go through either Wilmott or Hull's books to get some basic foundational knowledge.
Start with Hull for the basics, then do Natenberg. Taleb is more nuanced and sophisticated so do that one last.
Hull is a good start, if you have an active brokerage/options account, try trading option contracts with the virtual account while reviewing the basic concepts so that you understand what the author is describing in the text. OptionsHouse (Now TradeMonster) has a good platform.
Options trading books/primers (Originally Posted: 11/25/2014)
Trying to move to a HF where the PM is big on options strategies... I know the basic payoff profiles of bear/bull spreads, but really want to get a firm grasp on how to structure trades for optimum r/r, and more big-picture strategy for employing options strategies in tandem with equites.
Any books/websites/PDFs you guys have found helpful?
Also interested in an options primer.
Learn the secrets to trading the options for free! http://i.ytimg.com/vi/oQ906vNuRfA/hqdefault.jpg
Sorry couldn't help it. In all seriousness The Practical Guide to Wall Street: Equities and Derivatives is supposed to be really good. Also Options as a Strategic Investment is one of the best if you want a really deep, in depth look at options.
a broker at my firm who lives and breathes covered call strategies calls this the bible
I highly recommend Euan Sinclair's books.
I second on Euan Sinclair's books.
I also liked Baird's book.
edit
Option Volatility & Pricing: Advanced Trading Strategies and Techniques - Natenberg Option Volatility Trading Strategies - Natenberg Dynamic Hedging: Managing Vanilla and Exotic Options - Nassim Taleb Options, Futures, and Other Derivatives - Hull
These were all required reading when i was trading. Id also advise reading any white papers on types of vol models that you can find (jump to diffusion, tri-nomial, whaley, SABR, etc.).
Good overview and walks you through trade structure with examples, when to use, risk profile and very easy to read.
http://www.amazon.com/Commodity-Options-Trading-Volatility-Lucrative/dp…
This one is like reading a math book, dry and difficult to follow along unless you are taking notes. Advanced but you'll have a very deep understanding of your risk and how best to adapt your position.
http://www.amazon.com/Options-Trading-Adjustment-Perception-Deception/d…
As suggested above, white papers are great way to find info, and just simply googling will find you all kinds.
Thanks for the help everyone. Cheers to not every WSO thread being about pocket squares or translating "HR speak" ie English.
Thanks for the help everyone. Cheers to not every WSO thread being about pocket squares or translating "HR speak" ie English.
Hull's Book on Options (Originally Posted: 12/27/2007)
Hi guys,
There's been a lot of talk on how great this book is. Just want to make sure we're on the same page-is this the book's title? "Options, Futures And Other Derivatives 6th Ed"
Also, I'm pretty strapped for cash and looking to buy this book on eBay. Does anyone have any experience with the international edition of this book? Is it the same as the US?
Much thanks and happy holidays
not sure about the international edition but yea you're right with the title: Options, Futures And Other Derivatives
International edition usually means paperback that some kid in India photocopied and bound together. So its basically like pirated music. A lot of my friends only buy "international edition" textbooks
i have the internationel edition you can find on textbookx.com, great book, one of the best investments you can make
anybody take this course, with the above textbook? I know its not really relevant to ibanking but how hard was the class in terms of difficulty understanding the concepts?
Free Options Trading Book -- Olmstead -- On Kindle (Originally Posted: 01/30/2012)
Amazon offers downloads of W. Edward Olmstead's Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks eBook for Kindle for free. That's $30 off and the lowest price we could find for this download. A Kindle reader, or Kindle-enabled device, is required to download and read this eBook.
from dealnews.com
Good find short, Im gonna read it someday.
sb for you stw. great find. dont know if its any good, but the price seemed reasonable enough to give it a shot...
Is this only for a very limited time? I'm at school right now so I'm hoping this doesn't expire by the time I get to my computer... good find though.
Oh they couldn't find it any cheaper than that? Weak sauce. I want to get paid for reading this book, damnit...
Downloaded. Thanks for the heads up.
Nice find! A link for the lazy: http://www.amazon.com/Options-Beginner-Beyond-Opportunities-ebook/dp/B0…
Options Trading/Finance Books for Sale (Originally Posted: 06/01/2011)
I have a bunch of options trading and finance books that I no longer need. I'll sell each one for 50% of the store price. All are in excellent condition, no writing in the pages and purchased either at Borders or Barnes & Noble).
I've listed them below with the store prices for a point of reference. If anyone is interested in buying any, or all, please PM and we can figure details out. I prefer cash, but will accept paypal if necessary.
The Commitments of Traders Bible ($70) The Volatility Edge in Options Trading (Augen) ($40) Day Trading Options (Augen) ($35) The Bible of Options Strategies (Cohen) ($53) DeMark Indicators (Perl) ($30) Trading Rules That Work (Jankovsky) ($50) Security Analysis - 6th Edition w/CD ($75) Snowball - Warren Buffet & The Business of Life (Schroeder), Hardcover ($35)
Cheers!
I wouldnt pay money for any of those books if im honest. There are way better options books out there in terms of technicals (Natenberg, Sinclair, Hull).
Id say Security Analysis is a good buy for people interested in fundamental analysis.
You can also get PDF's of most of these if you spend 5 minutes on google.
Options Books (Originally Posted: 05/01/2008)
From what I've heard Hull seems to be definitive, although on some energy forums a lot of guys are suggesting a book by Natenburg. I most likely would need something that really held my hand through the various pricing models.
Also, how necessary is it for me to be reading up on this on my own? I'm about to be a junior and I'm just trying to be ready for recruiting. Some say that you'll learn everything at the internship, yet many people on here seem to have taken the initiative to read extensively on the subject independently. Also I'm quite worried about securing an internship period, so I guess I probably need that extra edge.
generally speaking, Hull is more advanced than Natenberg though natenberg's book goes into the details of certain strategies more. the book most referred to in energy circles is probably the one by Edeland (which is slightly more technical than Hull)
It can get tedious, but I've always enjoyed McMillan's Options as a Strategic Investment...
Hull is good, but Natenburg will get you much farther into volatility which is much more important for an options trader than Black-Scholes and the modeling aspects which Hull covers. Read Natenburg, selectively read parts of Hull related to options (there's a lot which you will never use or hear about).
A deep all round book on options/derivatives (Originally Posted: 09/05/2013)
A deep all round book on fixed income is "The Handbook of Fixed Income Securities by Frank J. Fabozzi"
A deep all round book on options/derivatives is "????"
Anyone have any suggestions ?
Thanks!
Options, futures and other derivatives- John C. Hull
Hull will be too quanty for most people. i'd read natenberg and if you understand the trading aspects graduate to Hull for the quant side.
At some point in time, someone labelled Hull as the holy grail for options. But it is neither a)too quanty as the above said nor b) a great book for learning how to "trade" options. For options, read the following in this order:
Intro to Option Trading by Frans de Weet Euan Sinclairs Option book (the bigger of the two, he has a small crap one as well) Dynamic Hedging by Taleb
Thats all the theoretical knwledge you need, the rest is gained by using your creativity and thinking about situations you cna make money in, and experience of trading. Theres some stuff you will never learn in books, and one of those is learning how to manage a book of risk.
I second Natenberg's book for beginners.
This. There is no substitution to learning from the trading day.
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