Best books to read for learning options?

L

Learnbot

Member
VIP
Hello,
I’m brand new to trading and wanting to learn options trading. Any good books or videos or any other resources you guys recommend that would help me get started On the right path?

thank you guys for your help and time,
 
YungTraderFromMontana

YungTraderFromMontana

Well-known member
Just simply how options work? Or some specific trading strategy? What kind of trades would you be doing like how often and how long would you want to hold?
 
BenTen

BenTen

Administrative
Staff
VIP
I didn't read any books when I first started trading because the internet provided you with everything already; of course, this doesn't mean all trading books are completely useless now. It would help if you were more specific about your request, though. If you're starting and want to learn the basics of options, I recommend Option Alpha. Their free materials are enough for you to get started.

One of our VIP members, Burma, recently hosted a Zoom conference call where he went over the Option Greeks and Pricing. You can watch it here:

 
T

Thomas

Active member
Simple directional puts and calls, KISS, or a combination of for a "Syntheticlong/short".
My rules, 60-65 days out minimum, 70-80 delta, implied vol > 1000,...somewhat tastytrade rules also,......but directionals or spreads
 
P

poststreet

Member
VIP
suppose i would like to trade options intraday, in and out in a day ? any advice?
 
C

codydog

Active member
@Learnbot These guys have a lot of easy to understand options stuff - https://www.theoptionsguide.com/option-trading-strategies.aspx

@poststreet -- I trade a bunch of amzn intraday options as amzn usually has a wide range. You have to get a feel for it, see what your risk comfort is before starting esp on expiration day.

There are alot of "gurus" saying alot of smart sounding stuff about options. But I'd be cautious when they start going off on selling volatility and theta but thats just me.

Or you can read about Niederhoffer's book/experiences on what can happen when you sell puts/calls without an underlying economic reason for doing it.
 
L

Learnbot

Member
VIP
Thank you guys for replying and posting material that would help me get started, and my apologies for not being more transparent in what I was asking for. So I work in the medical field and my schedule basically follows market open and close time so day trading is not a very good option for me since I would be busy with patients during the "prime" time for day traders. And therefore I wanted to learn options trading which I can possibly hold for a couple of days and get in and out at my discretion. And as far as my trading experience, i would say next to none. I know how to use think of swim (learned from Youtube and posts on this site). So, in short, I would like to learn the basics of Options trading, and some beginner's strategies that would solidify my knowledge base.

@ben Thank you for the video and recommendation i will sure be looking into it when i get off of work today.

Thank you all for your time
 
M

Miket

Member
There are alot of charlatans in the investment education arena. Now more than ever. TOS had record enrollment for new accounts during the start of the pandemic which is driving demand for education.

Go slow. Trade small. Forget about getting rich in a year because that's a lie. It's a process to learn how to trade especially options correctly.

If your hands are shaking before you click the button something is wrong with what your doing.

I subscribed to Theotrade and took their options courses. It goes from basic to portfolio management strategies.

Lastly, you can use the advanced ordering section of program TOS to execute your trade in the last hour of day if your busy. That's when most long term holding institutions come in to buy and sell because it's less volatile because all the information is out. You definetly don't want to buy options in the first hour of trading. They usually have wide spreads. Set a Good Till Cancelled order to close out your position.
 
L

Learnbot

Member
VIP
@Miket thanks for the great advice, really makes sense tbh. and as far as theotrade goes, yah a friend of mine bought theotrade material and highly recommended him as well so I am definitely going to purchase the material as well. Thanks again mike and all, great community here
 
inthefutures

inthefutures

Active member
example of what can be done, Monday I loaded a bunch of plays, did not have to do anything with them, not a single one worked out, and still returned over 10% ROI for the week, will reset Tuesday on open. There are 1000's of way to play options, and it is almost all I do id trade options other than my futures day trades.
 
L

Learnbot

Member
VIP
@inthefutures that's exactly what I am planning to do. I know it’s not a get rich quick scheme by any stretch of the imagination for me but a small revenue generation (possibly) to utilize for the actual investment I know how to take on.
how did you get started with options @inthefutures if you don’t mind me asking?
 
inthefutures

inthefutures

Active member
1986 I went to a seminar, been studying and applying ever sense. This was back when you called in your orders, and brokers where clueless on spreads.
 
L

Learnbot

Member
VIP
Love it, great to hear it is working out for you all these years. Amazing!
 
inthefutures

inthefutures

Active member
do you understand the very basics, if not start there. Many brokers will provide some very basic option education
 
L

Learnbot

Member
VIP
I’m brand new to options, so I have been reading and researching. I am no where near being ready to trade real coins lol But learning has to start somewhere right? I have been watching theotrade videos so it’s sinking in slooooooowwwly lol
 
STB

STB

Member
Hello,
I’m brand new to trading and wanting to learn options trading. Any good books or videos or any other resources you guys recommend that would help me get started On the right path?

thank you guys for your help and time,
The best place I have seen for options that has tons of daily free content is Tasty Trade, Tom Sosnoff started Think or Swim before it was sold to TD and now he runs Tasty trade, check them out.
 
inthefutures

inthefutures

Active member
just be careful of picking up nickles in front of the steam roller
 
inthefutures

inthefutures

Active member
before placing trades the tastytrade way, read the book the black swan first.
 

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