Many people are poor. That is a given. If you are poor, you are most likely going outside your home to make a living and make more money. Restaurant work, retail, or more rugged jobs such as construction or agriculture, requires that you are able to deal with high stress environments to produce desired outputs. If you have worked these types of jobs before, you would know how much damage and pain it can give your body to the point that you are too physically exhausted to do anything. It is that same physical exhaustion that prevents many people in developing themselves for the better and try to get ahead in life. For this reason, many people in those fields will try to look for other economic opportunities to make a living with one of those opportunities being able to trade options.
Now personally, I don’t trade options professionally, but my job is to help provide you the opportunities to make a living for yourself and to succeed by not having to do grueling work. For that reason, I recommend these option books for your options journey. I recommend you only pick one of these books.
Options as a Strategic Investment
Options as a Strategic Investment: Fifth Edition by Lawrence G. McMillan is a comprehensive guide on how to use options as a strategic investment tool. The book is a best-seller and widely considered to be the “bible” of options trading. It provides a thorough understanding of the mechanics of options trading and how to use options to generate income, manage risk, and achieve specific investment goals.
One of the key reasons someone should read this book is to learn how to use options to generate income. Options trading can be used to generate income through selling options, also known as writing options. By selling options, investors can collect premium income, which is the amount an option buyer pays to an option seller. This income can be generated on a regular basis, such as monthly or quarterly, making options a great way to supplement income.
Another reason to read this book is to learn how to manage risk. Options trading can be used to manage risk by using options to hedge against potential losses in other investments. For example, an investor can use options to protect against potential losses in a stock portfolio. This can be done by buying put options, which give the holder the right to sell a stock at a certain price. If the stock falls in value, the put option can be exercised, limiting the loss.
The book also provides specific strategies for achieving specific investment goals. For example, it covers strategies for generating income, such as covered call writing and cash-secured puts. It also covers strategies for managing risk, such as protective put and collar strategies. And it also covers strategies for speculation, such as long calls and long puts.
In summary, Options as a Strategic Investment: Fifth Edition by Lawrence G. McMillan is a must-read for anyone interested in using options as a strategic investment tool. It provides a comprehensive understanding of the mechanics of options trading and how to use options to generate income, manage risk, and achieve specific investment goals.
Trading Options Greeks
Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits by Dan Passarelli is a valuable resource for anyone looking to make more income through options trading. The book provides a comprehensive overview of the key factors that affect options prices and how to use this knowledge to make profitable trades.
One of the key concepts covered in the book is the use of the “Greeks,” which are a set of metrics that measure the sensitivity of options prices to various factors such as time and volatility. By understanding how these factors affect options prices, traders can make more informed decisions and increase their chances of success.
For example, the Greek known as delta measures how much the price of an option changes in response to a change in the price of the underlying asset. By understanding how delta works, traders can make more informed decisions about when to buy or sell options based on their expectations for the underlying asset’s price movements.
Another important concept covered in the book is volatility. Volatility is a measure of the amount of uncertainty or risk associated with the price of an asset. By understanding how volatility affects options prices, traders can make more informed decisions about when to buy or sell options based on their expectations for future volatility.
In addition to providing a detailed understanding of the Greeks and volatility, the book also covers a wide range of other topics related to options trading such as strike prices, expiration dates, and various trading strategies. It also includes examples and real-life scenarios to help readers understand how the concepts covered in the book can be applied in practice.
Overall, Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits is an essential guide for anyone looking to make more income through options trading. It provides a comprehensive understanding of the key concepts and strategies needed to succeed in this market, making it an ideal resource for both novice and experienced traders.
Option Volatility and Pricing
Option Volatility and Pricing by Sheldon Natenberg is a comprehensive guide to understanding options trading and how to use volatility to your advantage. The book is widely considered a classic in the field and is often recommended to both novice and experienced traders.
The book provides a clear and concise explanation of the key concepts in options trading, including volatility, implied volatility, and the Black-Scholes model. Natenberg also explains how to use these concepts to evaluate and trade options, including strategies for both bullish and bearish market conditions.
One of the strengths of the book is Natenberg’s emphasis on the practical application of options trading. He provides numerous examples and case studies to illustrate key concepts and strategies, making it easy for readers to understand how to use the information in their own trading. Additionally, Natenberg includes chapters on advanced topics such as volatility surfaces and volatility trading, making the book suitable for experienced traders looking to take their options trading to the next level.
Another advantage of reading Option Volatility and Pricing is that it offers a unique perspective on options trading. Natenberg’s approach is more quantitative and mathematical than other books, which can help readers develop a deeper understanding of the underlying principles of options trading. Natenberg also explains how to use volatility to identify trading opportunities and how to use volatility to make better predictions about the movement of underlying assets. In conclusion, reading Option Volatility and Pricing by Sheldon Natenberg can help a person make more income by providing a solid foundation in options trading and by giving them the tools to make better trades. The book’s practical approach, case studies, and mathematical explanations can be very beneficial for someone looking to improve their options trading skills.
Once again, you only need to pick one of these books to understand options. Pick one book, study and apply, emphasis on apply, for 2 years and try your best to do well.
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