Amazon com: Option Chain Analysis: The CT Scan of Derivative Market: 9798520421573: Roy, Rajiv L B: Books

Options trading is particularly popular with traders who regularly trade the commodity futures markets. Widely recognized as an authority on derivatives, futures and risk management, Hull has served as a consultant to many of the best-known investment banking firms. Consequently, his book contains actionable information on swaps and other derivative instruments, trading interest rate futures and strategies for estimating the time value of options.

You must also learn how to interpret option chain components, strike prices, option premiums and expiration dates. Most of the readers who are traders have highly appreciated the contents of this book, and it can be implemented in most of the option strategies under various conditions. Hence, it will not only sharpen the practical knowledge but also the way the trading platform needs to be handled gets improvised. It comes with several Scanning setups to be used in ThinkorSwim, one of the leading trading platforms and is Free to be used as a part of this top options trading book.

Techniques for Maximising Trading Success with Samco’s Integrated Option Chain

This book has long been read by options market professionals and has been called the “bible” by options traders. Understanding how market volatility relates to options pricing is key to helping traders evaluate fair values in the options market. Its 1,000-plus pages contain information on specific options strategies and market conditions in which they tend to work best.

This led us down a path of discovery — where we found that one of the key issues plaguing options traders is the lack of access to real-time market data. By now it’s clear that option chain data is used as a supplemental tool to forecast stock movement and make trading and investment choices more informed. To invest profitably, traders must leverage options chain data, and for doing that they should be able to read the options chain chart correctly. It consists of several components, each providing valuable insight for the traders to make an informed decision. “Understanding Options” is a beginner’s handbook to options trading, arming you with a basic understanding of numerous critical concepts instead of handpicking a few.

The Option Trader’s Hedge Fund

It shows all listed puts, calls, their expiration, strike prices, and volume and pricing information for a single underlying asset within a given maturity period. The chain will typically be categorized by expiration date and segmented by calls vs. puts. This listicle of the best books on options trading serves a diverse experience level among the trader’s community. With practical insights and actionable strategies, option chain analysis books this book covers a range of market scenarios, from extremely bullish to bearish, sideways positive to negative, and range-bound markets. Discover how to craft effective option strategies tailored to different market conditions, including NIFTY and BANK NIFTY weekly strategies and breakout strategies on indices. It also offers advice on investments through spreads, put-call parity, synthetic options, trading volatility, and advanced options trading.

Trading volume, or the number of contracts that change hands in a given day, indicates how much liquidity there might be for any given option. Open interest, meanwhile, measures the total number of options outstanding on each strike and maturity, allowing you to  gauge the scale of market commitment. For instance, Delta represents the relation of the option’s price movement with that of the underlying stock. If you are a long-term investor, covered call strategies are beneficial in generating cash flows from the stocks already existing in your portfolio. Unfortunately, most guides discuss covered call strategies without much rigor – and, more importantly, without ending with an exit strategy.

Options Trading Books

Dan Passarelli, the book’s author, delivers on the promise of covering one of the most intricate trading concepts and boiling it down for readers. This book on options trading is packed with details about options Greeks and their impact on options values. “The Option Trader’s Hedge Fund” is what happens when an options trading coach and a hedge fund manager work together. This book on options trading goes past explaining common options strategies to help you build a blueprint for minting profits from options.

The book covers risk management, which is crucial, especially for newbies who have never experienced market fluctuations. Moreover, Overby has illustrated every concept with easy-to-understand images. Passarelli has gone deep inside all these parameters that even seasoned options traders will find themselves referring to earlier chapters.

For building a comprehensive knowledge base in options trading, dive into classics like “Options as a Strategic Investment” by Lawrence McMillan, offering in-depth insights and strategies. Additionally, “The Bible of Options Strategies” by Guy Cohen provides an extensive collection of strategies. Lastly, “Trading Options Greeks” by Dan Passarelli delivers a thorough understanding of option pricing factors. These books collectively offer a solid foundation, combining theory and practical insights for a well-rounded knowledge of options trading. Valuable reads, including “Trading Options as a Professional,” “Option Volatility and Pricing,” and “Exit Strategies for Covered Call Writing,” are ideal for advanced options traders.

In option chain analysis, this metric is crucial for strategies that capitalise on volatility rather than price direction. Unfortunately, a vast majority of traders only consider options trading as a speculative game. “Options as a Strategic Investment” by Lawrence McMillan is renowned for its real-world applications. Sheldon Natenberg’s “Option Volatility and Pricing” provides comprehensive case studies, while “The Bible of Options Strategies” by Guy Cohen is a practical guide featuring numerous examples. It will skilfully highlight how trading strategies can be used to gain profits from aspects such as Volatility, Time Decay, or changes in interest rate. It also uses New Charts and examples with discussions on how the proper application of these Greeks can lead to the accuracy of pricing and trading while offering alerts to a range of other opportunities.

1. A put option, on the other hand, gives the option holder the right to sell the underlying asset at the strike price.
2. By now it’s clear that option chain data is used as a supplemental tool to forecast stock movement and make trading and investment choices more informed.
3. What’s more, with the integrated options chain in the Samco trading app, you can perform an in-depth evaluation of the market and its impact on your chosen scrip before executing a trade.
4. Instead of having to search for an entire script name, option chain ensures access is just one click away.
5. This book on options trading goes past explaining common options strategies to help you build a blueprint for minting profits from options.

The 3 Best Option Trading Strategies for Beginners: The Ultimate Guide by Freeman Publications

One need not have a finance or technical background to implement these techniques, and it can be done by anyone who wants to make money through online trading. This book provides a brief overview of how options trading works in the real business world and explains some simple strategies for trading options. Option chains are probably the most natural form of presenting information for retail investors. Traders can identify the option premium for the contract they want by looking through the chain for their preferred expiration date and strike price.

Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. The OI represents the total number of outstanding option contracts that have not yet been settled. Increasing OI means new money is coming into the market, and decreasing OI signals that positions are being closed.

Overall, this is one of the best books on options trading if you want to firm your grip on the ins and outs of options trading. If you have dipped your toes into options trading, this book serves as a simple, easy-to-understand guide. Frank Richmond’s “Options Trading Crash Course” is an excellent pick if you are not entirely versed in options trading terminology. In a nutshell, this book, once read, should enlighten you with diverse strategies. Such that you do not need to seek any other resources before taking off options trading.