What is the best book to read to learn options trading?

Question

I have a pretty good undertsanding of stocks but i have no clue what options are.

Answer 1

I too was in the same boat as you a few years back. After having discussed this with several professionals and traders, I was recommended the following and support their thoughts as well:

1) Options As a Strategic Investment by Lawrence McMillan
The book is heralded as the "The Bible" for option traders. It comes complete with explanations, charts, and commentary; a complete package and stand-alone volume. It is often called the "OSI book."

2) Option Volatility and Pricing by Sheldon Natenburg
This particular book delves more into the structure and pricing of the option rather than the many applications as OSI covers.

Conclusion: Anything by the above two authors is a safe bet to be a complete study tool in learning about options. From beginning investors wanting to know the basics through the advanced traders who want to brush up on concepts and application, you are bound to be satisfied.

Answer 2

I must agree with #1 and disagree with #2. Here is my own rationale: If you haven't traded stocks, or anything for that matter, then you don't know the fundamentals about markets in general. You need to know them because you have to understand the underlying dynamic of the market, not just the security you would be taking an option on. Next, and in tandem with understanding the market dynamics, you need to understand the industry dynamics and then the underlying stock. Yes, all 3 should be aligned to push the odds in your favor as much as possible( this dynamic can be positive or negative). Only then go after the option and there are a lot of different strategies to pick from. So, yes read a couple of books or even take some courses, but do remember, this is more like gambling than investing and it may better suit you to start with share trading and working your way up to options.

Answer 3

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that you can get your answers in this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Answer 4

GETTING STARTED IN OPTIONS by Thomsett

Answer 5

try ebooks from

www.4shared.com

www.hdfcsec.com

try aptistock freeware 4 technicals

Answer 6

http://www.best-stock-trading-systems.com/option_trading_system.html

Answer 7

Try this site:
http://www.theoptionsguide.com/

Answer 8

got to cboe.com