Options trading has been gaining popularity over the last few years, as a powerful tool to help add more versatility to people’s portfolios. Options can be used to hedge against risk or, if done correctly, can help generate income on a consistent basis, without having to predict which way the market will move.
Naturally, we were curious to see what all the buzz was about. So, we searched around the internet to see what we could learn. With such a drastic difference in opinion, we decided to find out for ourselves if options trading had a place inside the average investor’s portfolio.
We evaluated 37 guides on options trading, some free and some paid, to determine which guides offered up the best information for beginners. We wanted a guide that would teach us the basics, dive into strategy, and then give us useful tips for how to properly incorporate options in our own trading. It also had to be explained in a way that was easy to understand. We’re not finance majors over here!
Ultimately, our goal was to determine if we liked the idea of trading options, so finding a reliable source of information was crucial.
We started by going to websites offering free guides on options trading in exchange for our email address.
Not surprisingly, the free guides we found turned out to be less like guides, and more like long-winded sales pitches. They’d offer up a tiny amount of information, but by the end, were almost always trying to sell us on a software or newsletter subscription. None of them really went into much strategy. Instead, they’d skim thru key concepts, giving up very, very little detail along the way. We learned the hard way, that there’s a reason these guides are free.
It became very clear once we compared them to the guides we later purchased. The difference was night and day. The purchased guides were far more robust in terms of content, and typically went into far greater detail explaining strategy. Not only that, but many of them gave strategy recommendations based off individual circumstances, risk tolerance, and what the market was doing. By the end of our search, we’d found several guides we felt did a good job at teaching us options. Most of them covered the same material, but what was interesting was the difference in opinion when it came to strategy. It seems there’s more than one way to skin a cat when it comes to being a successful options trader. But that’s the problem with opinions– everyone seems to have one. And the last thing we wanted was to learn options from non-credible sources. So we evaluated each of them based off the following criteria:
The Results Are In…
#1: How Options Trading Made Me A Millionaire
Best Options Trading Guide For Beginners and Advanced Traders. Everything From How To Get Started To Advanced Strategies & Tips To Make Money Today.
In our research of the best Options trading guides, Joshua Green’s How Options Trading Made Me A Millionaire is the gold standard for learning to trade options. This is a “no frills” straight to the point guide on options trading. Written by professional options trader Joshua Green, a 33-year-old, self-made millionaire, who went from struggling telemarketer to successful financial consultant thanks to his experience with options trading. He’s now offering training courses, and an in-depth options guide, so that anyone who’s serious about making money, can do what he did and copy his success. Split up into 4 defining sections, this guide did way more than lay out the basic concepts of how to trade options.
First it dives into the history of options, where they stem from, and how they were used initially.
Then the guide goes thru all the terminology needed to understand and execute options trades. It even goes so far as to dissect options chains, providing real, tangible, examples so anyone unfamiliar with options will be able to read real charts moving forward.
But here’s where we think the guide went further than the others. Josh gives us his recommended strategies—the very same ones he uses in his portfolio.
With so many different strategies out there, it can be overwhelming to try and pick which ones are right for your account. Well, Josh gives us his 3, and it just so happens, they’re perfect for satisfying the needs of any trader, whether they’re conservative, risk adverse, or not.
And lastly, and probably most importantly, Josh talks options trading safety, and how he’s managed to keep his profits, and the list of rules he believes every options trader needs to follow, for consistent profiting.
In a nutshell, this guide will give you the history of options, the lingo needed to trade options, the options strategies he’s had proven success with (and still does) and lastly, a string of safety measures he feels are paramount for options traders if they want to be successful long-term. All in all, How Options Trading Made Me A Millionaire is our #1 top choice.
#2: The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies
Guy Cohen presents today’s most effective strategies for trading options: how and why they work, when they’re appropriate and inappropriate, and how to use each one responsibly and with confidence.
Updated throughout, this edition contains new chapters assessing the current options landscape, discussing margin collateral issues, and introducing Cohen’s exceptionally valuable OVI indicators.
The Bible of Options Strategies, Second Edition is practical from start to finish: modular, easy to navigate, and thoroughly cross-referenced, so you can find what you need fast, and act before your opportunity disappears. Cohen systematically covers every key area of options strategy: income strategies, volatility strategies, sideways market strategies, leveraged strategies, and synthetic strategies.
Even the most complex techniques are explained with unsurpassed clarity – making them accessible to any trader with even modest options experience. More than an incredible value, this is the definitive reference to contemporary options trading: the one book you need by your side whenever you trade. For all options traders with at least some experience.
#3: Options Trading for Beginners: Learn How to Get Started and Make Money with Options Trading.
Options Trading for Beginners: Learn How to Get Started and Make Money with Options Trading is written by Michael Johnson, is a good introduction to options and the basic strategies.
We really liked this book for a few reasons. For one, it was laid out simply, and written clearly. There was a ton of good information for beginners, and the strategies he discusses make sense. We also liked he price point. We definitely felt we got a ton of value at only $19.97.
It also takes a step by step approach for laying out each of the options strategies. Conceptually it’s great, while not overwhelming the audience with the technical.
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