How do I learn about trading options?

There is no shortage of resources available to learn more about trading options. If you are looking to buy a book (or two) to help you get started with options, this list is what our traders recommend:

  • Option Volatility & Pricing by Sheldon Natenberg
  • Bible of Options Strategies by Guy Cohen
  • [Advanced options] Fundamentals of Futures and Options Markets by John Hull
  • [Advanced options] Trading Options Greeks by Dan Passarelli

While these books are high quality, they aren’t free. We have also created an online “book” on options that is free and available on our UpLearn site. This online book, written for beginners, is approximately 200 pages of content that explores:

  • Basics of options
  • Key terminology like strike prices, open interest, put-call ratio, implied volatility, and option chain
  • How options are priced and how different factors can impact their price
  • Different option strategies, their specific rewards and risks, as well as when they can be used