Podcast – Episode 142 – Best Option Trading Books
Hey there, this is Allen from Option Genius.
One of the most common questions that we get at Option Genius is, “Allen, I want to know more about options trading, What books should I read?”. And so I made this short video for you to tell you some of the top books that I think should be in your library. There are hundreds and maybe even 1000s of books on there on options, but not all of them are worth your time. Okay, so I wanted to save you some time, tell you the ones that I think would be the best. So here we go. This is the first one. Now these books are in no particular order. But this one is “Options as a Strategic Investment”.
Now this one is the heavy hitter. Okay, you can tell this is thick, it’s very long, it’s very detailed. This is like the Bible of options trading, okay, now, you’re not going to make it through the whole book in one sitting. And you might never make it through the whole book. I’ve tried it a couple of times falling asleep. But this is not meant to read cover to cover. This meant this book is meant more as a reference book, at least that’s how I use it, if I need something, or if I need to look up something, especially when I was starting out with options trading, this one was very helpful. You know, it was it’s a good source. There’s a lot of good material, a lot of good examples in here. And it covers just about every single thing about options related in here.
So if you’re just starting out, and you need one book as an introduction to options, this one might be a little bit too technology or jargon heavy, but it’s a good one to have with you. Okay. Now, second book I have here is called passive trading, how to generate consistent monthly income from the stock market in just minutes a day. Now, this is the book that I wish I had when I started trading 15 years ago. Okay, now, to be honest, I have written this book. So I’m the author of this book. So I’m a little bit biased. But you can tell it’s a decent sized book, this is not the goal for this book was not to cover every single strategy and every single way to trade options and everything about options. That’s what this book does. So we don’t need to recreate this book, what I put in this book is what I need, or what I think you need to make money the fastest way possible with options, okay? The the how to think about it, why you need to start trading options, and the strategies that you should use to really simplify your trading, and really get going and making money quickly as quick as possible with Options. So that’s why I’ve written this book. That’s why it’s on my list, because I think everybody who trades options, at least if you’re, if you’re just starting out, you definitely need to read this book. Okay. And the other thing is that it talks about doing it in your spare time. So that is a whole different philosophy. We don’t talk about buying options in this book, I tell you exactly why that doesn’t work, I show you how to sell options in a way that doesn’t take a lot of your time, so that you can actually make money from the stock market, but still have your time to do whatever you want. Because that’s really the goal of making money, right? We want money for freedom, we don’t want to make money just so we can work longer hours. So this is what this book shows you.
The next book we have here is called “Generate Thousands in cash on your stocks before buying or selling them”. Now, this book, I’ve used maybe the first two or three chapters, and the rest of it is about indicators, technical indicators, technical analysis, stuff that I don’t use, I haven’t even read. But the first two or three chapters have made me a lot of money. And so that’s why they’re on the list. Now, the strategies he talks about in the first couple of chapters are basically naked puts, and how to trade them and different ways you can use them. And like I said, it’s made me a lot of money in the past. So that’s why I put the this book on the list. Okay. Now, a lot of books out there, talk about the different strategies, but they don’t tell you what to do. If your trade gets in trouble. They just broadly glance over it. So this book here is options, “The option trader handbook – strategies and trade adjustments”. So this book actually goes into more detail about what to do when your trade goes into trouble, how to adjust your trade, and it covers different strategies and covers a couple of different adjustments for every single one.
Now, it’s not the same thing as watching a video or watching somebody actually do the strategy and think about it and tell you why they’re picking one adjustment over another one. But when you have some ideas of what different adjustments you can do, then if you’re trying to get into trouble, you can analyze them and see which one you like better, which one you think will work best for your bad trade. And then you can go with that and hopefully it will work out so it’s a it’s a good book if you don’t know anything about adjustments. And it’s definitely something you should have. Just in case a trade goes bad you don’t know what to do. You can pick this up and look for ideas.
Okay, now, for those of you who are iron condor traders, this one is is profiting with iron condor options, strategies from the front line for trading in up or down markets. Now, the reason why I chose this one, and it’s not a very thick book, because it doesn’t cover everything about iron condors. And if you want to know what an iron condor is, and if you’re an individual investor, how to trade it, we actually have a course on iron condors that goes through all the details, adjustments, everything you need to know. But the reason why this book is on the list is because the fellow who wrote this book says he’s a hedge fund manager, he runs a hedge fund, and he trades iron condor as his main strategy. So that means he’s doing millions and millions of dollars worth of trades in the iron condor. So from his perspective, if you’re an iron condor trader, this one was really cool to read to see how he does it a little bit differently than us individuals how much harder, he has a time to do the iron condor. But how he’s still able to make very good profits, even though he’s trading in the millions of dollars with iron condors. So this one was a cool fundraiser.
Okay, the next one. Now, this book might be out of print, it’s the complete guide to option selling, this one might be out of print. But if you didn’t pick it up, us, it will be a good book, if you’re interested in futures options. Now, the title is, you know, the company guide options selling but they don’t talk about stock options. In this book, they only talk about futures options. Now, the reason these authors wrote this book was because they had a management fund, like a management company, so they wanted you to give them the money, your money, and then they would trade options for you. That’s how they made their money. Unfortunately, they made some mistakes, and they blew up, meaning they lost all of the money for their investors, and they went out of business.
So that’s why I’m saying that the book might be out of print, because they don’t need to use it anymore as sales piece, but it still has some good material and good information in there if you’re looking to trade futures options. But keep in mind that the strategies in here work, if you have a lot a lot of money. Now I’ve tried trading these with a smaller amount of money, like you know what a normal person would have, they didn’t really work out. So I had to test and tweak them in order to make them work. So if you aren’t going to use this, the book, you need to know that they might not be ready for just, you know, follow along exactly as they say in the book, because, like I told you, this book was meant to be a sales piece. Not exactly, to give you a complete A to Z explanation of how futures options work. Okay, but it is good for futures options, it gives you some good ideas and some good things. So that’s why it’s on the list. And then lastly, I have a book for all you option nerds. Now, I have not read this book, I don’t think it’s necessary to understand everything about option volatility and pricing to make money with options. Now volatility, yes, pricing, maybe not. Because pricing is something that, you know, if you can, if you’re trying to sell an option, and they’re only going to pay you $1, that’s all you’re gonna get, you can decide yes or no. And if it makes sense for your risk reward on your trade, then maybe you’ll take the trade. But, you know, if you want to really get into the weeds, and really understand volatility, and pricing of options, and how they’re priced and why they’re priced on certain days, so much, and how to take advantage of that, again, if you’re playing with a lot of money, then that really helps if you’re an individual investor, you’re not going to worry about that so much. But this is a very, very jargon intense book. It’s very dense. And it’s good if you really want to get into the weeds. So that’s why I have that one.
Now, again, all these books are great. In the beginning, I think this is the only one you really need. Because that’s the way I’ve written it. That’s the way you know, this is like, okay, so we have all this information out there. You have all these different strategies out there. What do I start with? What do I do? Well just read this one. That’s the way it’s simple. That’s why I’ve written it today. Hey, from A to making money as fast as possible. What do I do? That’s why I’ve written this book. So hopefully, this helped. These are some of the books out there that I think can definitely help you. I’ve tried to bury them. But hopefully this helped. And if you have a book that I missed, or I left out of the list, please put it in the comments down below. Let me know what book you think should be on the list. And so when I update the video if we get enough of the same if everybody if several people say this book help them. If it’s not gonna list we’ll go ahead and add it. No problem there. All right now, take care and remember to always trade with the odds in your favor.
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