I’ve published four books, three for the options beginner, and each contains more material that the earlier books. Thus, I strongly recommend The Rookie’s Guide to Options (2008). In my (biased) opinion, it’s destined to become a classic primer. Read those reviews at amazon.com. They are genuine.
Although written for the beginner, there is enough advanced material to make this book useful for years to come.
When writing The Rookie’s Guide, I provided extra detail, just as I do in my blog posts. Why? To anticipate questions and perhaps answer them – before you ask.
I explain why calls and puts are interchangeable when you buy or sell stock with the options, and that some positions are equivalent to others. This type of information is not available in most books targeted to rookies.
One chapter contains a thorough discussion, with proof, of why these different-looking positions are truly equivalent and deliver essentially equal profits or losses. [The returns are only 'essentially equivalent' and not identical because bid/ask spreads and minor inefficiencies make it next to impossible to trade the different positions at the exact price that makes the trades equivalent.]
Understanding this single chapter places you years ahead of most novice option traders.
There’s much more to say, but the reviews and testimonials speak for themselves.
This book sells for $34.95 retail, but prices vary all over the place. Amazon.com often sells the book at $23.07. Expect to pay in the low $20s.
I offer a FREE sampler version that contains a very short excerpt from each chapter. This book has been downloaded more than 12,000 times and offers a good idea of the contents of the full book.
***
My first book was written in 2002 and is available as an e-book ($3.50) or paperback. The Short Book on Options explains the basic concepts of how options work along with a good description of writing covered calls. If you are looking
for an inexpensive way to get started, this book is still useful. If you plan to achieve more than just ‘getting started,’ then the Rookie’s Guide is for you.
*** Between these two books came Create Your Own Hedge More recently (2010), I completed an e-book, available in .pdf format ($12). Titled: Lessons of a Lifetime, it’s my 20,000 word attempt to offer some of the most valuable lessons learned over the course of my 33 years as an options trader. It’s available as a Kindle version ($10)
Fund (2005). By examining the strategies of covered call writing and selling cash-secured puts when using a mix of ETFs (Exchange Traded Funds), I show the individual investor how he/she can own a hedged and diversified portfolio. And that’s exactly how some of the less sophisticated hedge funds operate. You truly can create and mange your own mini-hedge fund.
***
Two e-books are available free. One is a sampler version of The Rookie’s Guide to Options and the other is An Introduction to Options: The Basics. To receive either (or both) follow the link. It takes you to a shopping cart, but don’t let that be a concern. The cost is zero.
I have more books planned, but blogging and other work translates into having no idea when any of them will be finished.
Are any of your books available in audio or video format?
With so much to learn – what is really needed is personal consulting.
Wont you direct me to such a resource?
Tom,
The Short Book on Options is available as an e-book ($3.50). It’s a beginner’s book and covers the basics of how options work – in detail. It covers only one trading strategy because it is a rookie’s book. That’s my only e-book as far as options education is concerned. Making books available an e-books is strictly the publisher’s decision.
If you seek training or coaching, that’s very different from needing education or lessons or discussions on aspects of trading. I can help if you are looking for a ‘teacher.’ If you truly need a coach (someone who sees what you do, finds and corrects errors in technique, timing, entry/exit decisions – I don’t do that). Send e-mail to me at blog (at) mdwoptions (dot) com for additional information.
I wish you well
I am finishing Michael Sincere’s 2 books and he recommended that I contact the options guru for further instruction. I asked if he knew of any educational books on how to do technical and fundamental analysis for beginners. He mentioned another book of his and your blog so I thought I would see what direction you would recommend.
Hello Pete,
I come to trading/investing from a different direction, and use options for shorter term trading ( a few weeks to a few months). For that reason I do not care about fundamental analysis. I would never wand to discourage anyone from doing that, but it is truly for longer term investors. The fundamentals seldom affect the price of any stock quickly. It takes time for the fundamentals of a good company to become recognized by the market place. In other words, stock prices do not change overnight.
I’ve never learned anything about technical analysis. Some believe that no one can trade without it – and for anyone who generates profits by using technical clues, i say great for them. I know these people exist an find TA to be powerful. I’ve never learned, never trusted the results, and so I don’t use that either.
There are many books on this subject, but I have not read the and cannot make recommendations. I recommend that you read some blogs written by people who do such analysis and I’m sure you will find a few that resonate well with you – and some that will not.
Here, I’m busy enough responding to options and options ideas and strategies. If you are skilled in either FA or TA, certainly add those skills to option-trading skills to time your entries and exits. I encourage that. However, I can offer no guidance on how to do that.
If you have options questions or want to learn to understand how options work (allowing you to determine whether options trading is for you), then I do recommend a book that I wrote: The Rookie’s Guide to Options. If you would rather save a few dollars, you can see what your local library has in stock or check out your broker and learn what educational material they offer.
I wish you well. Trading options is exciting and takes a bit of effort to get going. However, the purpose of this blog is to help you get started on the right foot, so feel free to ask questions as your education progresses.
Regards,
I want to purchase “Lessons of a Lifetime” pdf version. I only see kindle version at Amazon. How can I buy a pdf version or paper version? I have been reading your blog for a long time and I appreciate your words of wisdom.
Peter,
It’s available as a download from e-junkie:
https://www.e-junkie.com/ecom/gb.php?i=652702&c=single&cl=72055
Thanks. I appreciate your comments.
Thanks for your blog.
Can you make your personal rank for the following books?
i)Option Volatility & Pricing – Natenberg
ii)Options: The Hidden Reality – Cottle
iii)Options Volatility Trading – Warner
iv)Trading Options in Turbulent Market
v)Trading Options Greeks – Passarelli
vi)Trading Options as Professional – Bittman
In this list where you insert your “Lessons of a Lifetime” ?
Thanks for your work and your blog
Paolo
Paolo,
Lessons of a Lifetime ranks last. It is not a trading book. It contains some personal recollections, but is primarily a discussion of things I’ve learned and some philosophy of trading.
1) Natenberg tops the list. But it is NOT a beginner’s book.
2) I have not read most of the books on the list
3) Cottle is well accepted in the industry, but I find he writes about only one topic and approaches it from different points of view: He loves equivalent positions and I find his books limiting in scope
4) Warner, Bittman, Passarelli each wrote a good book, but as the titles tell you, they look at different areas. Thus, rating and ranking them is near impossible. If volatility is of no interest to you, then Warner’s book will not satisfy. If you want to learn more about trading volatility then it will.
Bittman’s books are well done. If you want to know more than the typical student learns, he delves further into idea that suit the full-time trader. I don’t know Dan P’s book, but the title tells me it’s worth reading.
5) Shover’s (turbulent markets) is not for the beginner and is too limiting. I’d put that book is position vi.
Sorry I cannot do a better review of these books
Hi Mark.
Thanks for your reply.
I’ m studing in depth the so called deltaneutral “Monthly Income Strategies”, in particular
the setup of the Portfolio (IronCondor vs Double Calendar vs Ratio Diagonal Spread) and the Adjustment
around the BreakEven points using the balancing of the Greeks (through the same figures).
Can you suggest some books/links/materials on the subject?
Thanks again
Paolo
Paolo: Next time, please comment on a page that others will see. A recent blog post, for example.
There have been some recent books on the iron condor, for example. I am not familiar with them. I suggest starting with your local library. They may be willing to buy a book that you suggest. Otherwise, the best I can do is to suggest a Google search. Then you can search for reviews of any books that you discover.
Sorry. I just don’t have the time to keep up with books in my field. Although it would probably be a good idea.
Readers: any suggestions?
Regards
I would like to purchase Lesson of a Lifetime and just send in a check for the amount. I don’t want to put my credit card info. into the web site. Where can I send the ck. to. Thanks, J. Stewart festusguy@cox.net
Thanks. Information sent via e-mail.