There are many option trading books worthreading. Before you consider one, youshould have a basic understanding oftechnical and fundamental analysis. Ibelieve you need to be a good stock trader before you can become a good optiontrader. Here are a few of my favorite optiontrading books in order of complexity. Options:Essential Concepts, Third Edition by The Options Institute. The Options Institute wasformed by the various option trading exchanges to educate retail and institutionalclients. This option trading book givesan overview on the history, pricing, strategies, floor operations and MarketMaking. It is easyto read and it provides an excellent foundation. Optionsfor the Stock Investor, by James Bittman. Thisoption trading book goes through many of the basicoption trading concepts and the terminology.James is an instructor at The Options Institute and he has decades of experience. He is one of the most knowledgeable authorsin the industry. OptionsAs a Strategic Investment, by LawrenceMcMillan. In short, this book is known by many as the “option trading Bible”. I have read it cover-to-cover manytimes. It is detailed andcomprehensive. It explains every optiontrading strategy and every option pricing concept. If you read it and understand half of it, youwill know more than 90% of the people engaged in option trading. McMillanon Options, Second Edition by LawrenceMcMillan. Larry is one of the foremost authoritieson option trading. In this option tradingbook he rolls up his sleeves and dives into some of his favorite option tradingstrategies. He uses examples to illustrate his approach. OptionVolatility and Pricing: Advance Trading Strategies and Techniques, by SheldonNatenberg. This option trading book gets intoserious option trading strategies and you need to have a good understanding ofthe basics. As I mentioned before, to be a good optiontrader, you need to be a good stock trader first. Start with basicbooks on technical and fundamental stock analysis and then work your way up.

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