What are some good books on Options?

Please suggest some books which explains about Options and Options Trading in Indian markets.

2 Likes

Undoubtedly Sheldon Natenberg's Option Volatility and Pricing . This is great book to learn options. This is not from a Indian context though. 

6 Likes

U may try ncfm modules on options.

1 Like

John C Hull… goes without saying :wink:

setoptions.com Go here you will get your answer

Start Trading Options- Kevin Kraus

Options made Easy- Guy Cohen

the bible of options strategies - guy cohen .

just google , u may get the full pdf for free download .

many strategies given in depth

For Options traders:

Option Volatility and Pricing - Natenberg

Option Market Making - AJ Baird

The Business of Options - Martin P. O’ Connell

Dynamic Hedging - Nassim Taleb

J.L.Lord - One Strategy for all Markets

Dynamic Hedging by Taleb

The Bible of Option Strategies. (Guy Cohen)

Option Playbook

Option Strategies for Directionless Market by Anthony Saliba.

This book contains too much of unnecessary stuff. I’ve read upto 60 pages and learned nothing new. I’m not sure rest of it contains anything meaningful. I’ve tried to convince myself twice that I may find something meaningful in it so I should continue to read but couldn’t. Too much of redundant text makes me forget what I read in last paragraph. For me this book is nothing but bloated.

Reading abt Options bring about boredom, but we should read at least one time to know the concept. One of the gud ways i have found is by practically start trading options in small amount. You can go for watching webinar @ https://www.interactivebrokers.com.hk/en/?f=%2Fen%2Fgeneral%2Feducation%2FpriorWebinars.php Search for the word ‘Option’.

@sdg It’s not about boredom. It’s only about this particular book. In the chapter on Theoretical Pricing Model s, only after more than 15 pages the author starts discussing models for real. I think such problem persists in many books written on trading and market… Or maybe this book is for absolute novices. I’ll stick to options workbook from NSE, at least it doesn’t contain unnecessary stuff and will refer the above book only for concepts that I find difficult.

Suggest you stay on course and read through the entire book. 60 out of the 400 odd pages is too early to judge.

Agree with karthik;If you want to understand volatility and greeks, there’s no comparision to this book.But the content is not rich for those who are looking for various different stategies.For various strategies and their timing you can check optiontradingpedia.com(again not indian context).

Great views pals! I was recommended Options as a Strategic Investment by Lawrence G. Mcmillan. Its still to arrive. I dont find its mention here. Any views on it!! Thanks

Hi @AmanSharma

If you are looking specifically for books, skip every thing I’ve written and go ahead to Paul Wilmott Introduces Quantitative Finance Chapter 2,6,8,9,10. If you are open to Web, Webinars, Interactive content etc, here are some useful links.

Beginner

Khan academy modules on options
Put And Call Options Module

Black Scholes

NSE’s Options Workbook
If you are planning as a beginner, and you do not want to get deep into the math of Options, I would actually go ahead and recommend this. This is from an Indian context

For Option Strategies
https://www.optionsplaybook.com/

Sensibull Option Webinars
Sorry about a little bit of self promotion :slight_smile:
But I actually spent a good couple of weeks designing this curriculum of options on youtube. Simple stuff, Hindi and English
https://www.youtube.com/watch?v=thK5hKxkdOg&list=PLfbHmXdG-215obSCtD9U2ob2UlfetFNZ-

Advanced
A lot of books have been suggested in the thread. So I would not repeat. Some counter points.

John C Hull is something I would not recommend. It was part of my curriculum, but I thought it was never a good options book. It is shallow, touches everywhere, no depth, and not useful for trading

Dynamic hedging by Taleb is something I would recommend for you after you pick up a doctorate in quant fin. I understand option math a little bit, but that book scared me. Honestly. I have heard good stuff about Natenberg, never tried though.

A must read on options, IMHO, is
Paul Wilmott Introduces Quantitative Finance
You can find many PDFs everywhere. If you do not get a copy, let me know
Chapter 2,6,8,9,10 will be more than enough.

I have read this book, and would personally vouch for it

6 Likes

Thank you Sensibull team…

I am impressed.

I have never traded options in my life, done cash and futures/CDS.

How would you suggest I wet my feet in the options pool?

Any small suggestions would be graced with thanks.

@Joe_Chris

This is what we tell our users:

  1. Please be patient with trading, and invest time in education. Options trading has high rewards to reap if you understand it very well. Here is our educational channel, if it helps. We will launch more videos in the days to come https://www.youtube.com/besensibull
  2. Option Sellers win in the long run. When you sell options, you are betting against unlikely events, and time is on your side. Option buying is one of those get-rich-quick schemes. Very few people win the option buying game. Selling, on the other hand, will let you make steady returns. As the proverb goes, slow and steady wins the race. 20% YoY return compounded over a few years is a lot of money!
  3. Always make sure your losses are limited, and you can bear them - Trading spreads with limited losses is a great way to control your risks and sleep peacefully in the night. Nothing is more important than that
  4. Trading is a very interesting pursuit. It will make you smarter, sharper, and more disciplined. It can also be addictive. Please remind yourself to keep a balance.
  5. And finally, people will tell you it is very hard to make money trading. Don’t let that be a limiting belief. If you control your risks, keep your losses limited, and keep your emotions in check, it is not hard to make money here. Have fun while doing it!
2 Likes

Thank you Team, your answers seem very genuine and detailed.

I am impressed by this fintech initiative.

1 Like

Option Greeks Strategies & backtesting in Python: comprehensive guide on trading options in India eBook: Gupta, Anjana, Kanwar, Puneet: Amazon.in: Kindle Store](https://www.amazon.in/dp/B089GQM3QD/ref=cm_sw_r_wa_apa_i_Rzn1Eb2PDMKYC)

Try this latest book. This book covers all aspects not only Greeks strategies but also how to backtest your strategy on past data of NSE thru python.