Option Pit Mentoring's Reading List
Category 1: The Starter
The Rookies Guide to Options by Mark D. Wolfinger: yes, he is a little irritable sometimes, but in the end the man cares about people. He wants to help new traders, and he wrote a pretty good beginner book. There are other decent rookies books out there as well, Options Spread Trading by Russell Rhoads, and Options for the Stock Investor by Jim Bittman are both great books as well. However if I had to pick one, Mark Wolfinger is my choice.
Category 2: Getting Ready to Start Paper Trading
Trading Options as a Professional by Jim Bittman is more mathy than a beginner book, less mathy than an advanced book, but in the end beautifully written, highly educational and one fine book. I have yet to find an intermediate level book that is as high-quality as this one. He did a masterful job. One other book that I like in this class is Options Volatility Trading by Adam Warner. This is probably one of the hardest areas to write in and both of these authors do it well.
Category 3: Ready to Trade
Option Volatility & Pricing by Sheldon Natenberg is considered by most professionals to be the bible of the industry. I'd say this is the best written intermediate-to-advanced book available in the marketplace and the closest thing to a "textbook" that is actually NOT a textbook. The other great book is Larry McMillan's Options as a Strategic Investment. If more advanced traders only buy one, book I would make it one of these.
Category 4: Advanced and Mathy
Dynamic Hedging by Nassim Nicholas Taleb is much more nuts and bolts, and less preachy than his later books. If you are looking to really understand advanced concepts of volatility this is a good source for acquiring that knowledge. To get any deeper means you are reading a math book. I would also suggest Jeff Augen's The Option Trader's Workbook at this level. It helps traders understand how they can apply all that they have learned.
There are several books that don’t fit into any of these categories that are interesting reads; however they makes sense as supplemental reading. Anything by Jeff Augen is worth a read, when Jared Woodard publishes I am sure that will be good and parts of Charles Cottle's latest book have tremendous value. However, I would skip these until you at least get though McMillan or Natenberg.
COO and Director of Education, OptionPit.com and Managing Editor, ExpiringMonthly.com
TradeKing All-Star Commentator
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