Fundamentals of Options Market This book is a very good introduction to options if you are new to the stock market. It is written in a very friendly tone, easy to understand and even briefly covers the basics of fundamental and technical analysis of the underlying security. It even covers such basic things as types of orders (limit, market, stop etc.).
The book covers not only the most basic options trading strategies, but also complex strategies that combine different options and underlying securities. If you, however, need something even more advanced, like “Short Iron Butterfly”, get the book “The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies” by Guy Cohen.
If you are already familiar with the stock market and just want to know about options, I can recommend “Trading Options for Dummies” by George Fontanills, which doesn’t explain about the fundamental analysis or order types.
The disadvantage of this book is that an important technique of selling puts as a way of buying the underlying security is not covered in this book. If you are interested in this issue, read chapter 19 of “Options as a Strategic Investment” by Lawrence G. McMillan. Another disadvantage is that it doesn’t have a single references to other books.
: Options are an investment vehicle that can enhance virtually any investment philosophy. Fundamentals of the Options Market provides a clear, concise picture of this global marketplace. Using examples drawn from contemporary financial news, this completely accessible guidebook describes why and how these versatile tools can be used to hedge risk and enhance return, while explaining popular products including listed stock options, index options, and LEAPS.
Fundamentals of Options Market
