How to Trade Options Book: The Best Reads for New Options Traders

The options trading world has changed dramatically, with everyday investors making up 45% of market activity. After years in this field, I've learned that successful options trading isn't about luck but being well-informed.

Whether you're curious about the growing trend of short-term options (now 56% of retail trades) or want to start trading yourself, getting the proper education is key to your success.

Here's my guide to the best options trading books for 2025.

Why Read an Options Trading Book?

We're seeing a fundamental shift in how people invest, with retail traders handling over a third of all options trades. This means having good educational resources isn't just helpful – it's essential.

While online content can be helpful, books provide:

✅ Structured Learning – A step-by-step approach to building your trading knowledge.
✅ In-Depth Coverage – Detailed explanations you won't find in short articles.
✅ A Reliable Reference – Books allow you to revisit key topics whenever needed.

With retail traders accounting for a record-high percentage of options trading activity, a solid education is more critical than ever. The rise of short-term options, with nearly 56% of retail trades focused on ultra-short expirations, means traders make fast, high-stakes decisions—often without fully understanding the risks.

Even small trades can lead to costly mistakes, missed opportunities, and account-draining losses without the proper knowledge. Many new traders jump into options without learning the fundamentals, leading to poor risk management and overexposure.

A structured education—through books, courses, coaching, or hands-on practice—ensures traders understand strategies, pricing dynamics, and risk mitigation techniques, helping them make smarter, more profitable trades instead of costly errors.

Must-Read Options Trading Books

Here are some of the most valuable books for beginners and experienced traders.

1.  Options as a Strategic Investment – Lawrence G. McMillan

📖 A cornerstone options trading book covering everything from basic strategies to advanced risk management. If you want to master options Greeks, volatility, and spreads, this is a must-read.

2.  Option Volatility and Pricing – Sheldon Natenberg

📖 Highly technical but one of the best books for understanding the math behind options trading. Natenberg explains how market changes affect option prices in a way that's easy to grasp.

3.  Trading Options Greeks – Dan Passarelli

📖 If you want to understand how the Greeks and risk factors impact options pricing, this book breaks down complex concepts into practical strategies.

4.  The 3 Best Options Strategies for Beginners – Freeman Publications

📖 A beginner-friendly book that covers income strategies, making it especially useful for new traders looking to generate income.

New & Noteworthy Options Trading Books for 2025

The options trading world constantly evolves, and these new releases offer fresh perspectives.

1.  Options Trading for Beginners – Tricia Young

📖 A newly updated guide that simplifies complex options trading concepts, covering the latest market trends, risk management techniques, and beginner-friendly strategies to help traders confidently navigate today's fast-moving options markets.  

2.  The Little Book of Trading Options Like the Pros – David Berns & Michael Green

📖 A practical guide by veteran traders that breaks down professional options strategies, helping traders think like the "house" rather than the gambler.

3. Options Trading 101 – James Royal

📖 From Understanding the Types of Options and Creating a Trade Plan to Analyzing Risk and Selecting Strike Prices, an Essential Primer in Options Trading

These books simplify complex ideas, making them great for new and experienced traders.

How to Choose the Right Options Trading Book for You

The right book depends on your experience level and learning goals.

If You're a Beginner, Look for Books That Cover:

✔ Basic options terminology
✔ Step-by-step trade execution
✔ Fundamental risk management
✔ Beginner-friendly strategy frameworks
✔ Real-world examples

For Intermediate Traders, Focus on Books That Offer:

✔ In-depth strategy breakdowns
✔ Advanced risk management techniques
✔ Market analysis tools
✔ Detailed coverage of options Greeks
✔ Portfolio management strategies

When Choosing a Book, Consider:

🔹 Publication Date: Markets change fast – look for books from the last 3-5 years.
🔹 Author's Experience: The best books are written by traders with real experience.
🔹 Book Structure: Does it offer step-by-step learning, exercises, and real-world examples?

Frequently Asked Questions (FAQs)

Q: What's the best book for complete beginners?

📖 Answer: I recommend "Options Trading QuickStart Guide" by Ted Snow. It's a great starting point with simple explanations and practical exercises.

Q: How many books should I read before trading options?

📖 Answer: Aim to read at least 2-3 solid books covering basic concepts, strategy, and risk management before placing actual trades.

Q: Are older options trading books still relevant?

📖 Answer: The core principles in classic books still matter, especially Volatility and Pricing by Sledon Natenberg, but I suggest balancing older insights with newer books to stay current.

Q: Can a book alone teach me options trading?

📖 Answer: Books are a great starting point, but real success comes from hands-on experience.

If you're serious about learning options trading quickly, consider enrolling in a structured course like Options Trading in 21 Days. This course is designed to take you from beginner to confident trader in three weeks, with step-by-step guidance, market examples, and trading strategies you can apply immediately.

Q: Is a book better than an options trading course?

📖 Answer: It depends on your learning style.

✔ Books are great for self-paced learning and theory.
✔ Courses provide interactive lessons, real-market examples, and structured learning paths.

If you're looking for a fast and effective way to master options trading, I highly recommend Options Trading in 21 Days.

Final Thoughts

A great options trading book can be a valuable resource, but combining books with real-world practice and a structured course will accelerate your learning and help you start trading with confidence.

🚀 Ready to take your trading to the next level? Start learning today with Options Trading in 21 Days!