Can anyone suggest a good beginning options trading book?

A fairly complete book is McMillan's "Options as a Strategic Investment".

It is pretty chunky, but I'd rate it for beginners-to-intermediate op traders. I thought it was very readable. Decent reference to have around too.

Next might be the "classic" - Natenberg "Option Volatility and Pricing".

From there you can go on up into pricing models and exotics..heck, you can do a PhD thesis if you want.

Also, you can learn quite a bit for free from online sources like:http://www.cboe.com/LearnCenter/default.aspx

Good luck.
 
Could you please give a review of Lenny Jordan's "Options plain and simple" you recommended? I checked it on Amazon but there's only the author's review, there's no list of content available, and it is priced pretty low.
:confused:
Quote from dunleggin:
Lenny Jordan's "Options plain and simple"

http://www.amazon.com/gp/product/0273638785/102-2702359-3643328?v=glance&n=283155&s=books&v=glance

Written by a CBOT/LIFFE floor trader, extremely practical, manages to cover a lot of ground within a compact book, and doesn't avoid describing the numerous pitfalls.
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How much of a beginner are you? How much do you know about options? Why are you interested in options trading?
Quote from earlybirdstango:
I mean...its kind of all in the title isnt it guys?
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Quote from cnms2:

Could you please give a review of Lenny Jordan's "Options plain and simple" you recommended? I checked it on Amazon but there's only the author's review, there's no list of content available, and it is priced pretty low.
:confused:
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There are a few more reviews on Amazon's UK site, and a fuller description. The review dated 17 Apr '02 captures the essence.

Jordan writes with a type of mentoring style, managing to come across very much as an experienced trader rather than options book author. Covers the basics sufficiently , while also giving brief and useful overviews of volatility, skew, synthetics. It's positioned as an option beginner's book , but also serves as a bridge to intermediate level. (One London prop firm uses this book as intro material for its recruits)

Numerous practical examples (mostly stocks), exercises at the end of each chapter which test thoroughly how well concepts have been learned. He uses his trading experiences typically to illustrate what can go wrong, and the emphasis throughout is on risks and practicality.

There are four parts: Options Fundamentals (basics of calls and puts; pricing and behaviour; volatility and pricing models; the Greeks and risk assessment) Options Spreads (basic; ratios; combos and hybrids; vol spreads; 'flies et al) Thinking About Options (Interaction of the Greeks; options performance based on cost; options Talk; troubleshooting; vol skews) Basic Non-Essentials (futures, synthetics & parity; conversions, boxes etc)

Quoting from the book's conclusion:

"If you have read this book in its entirety, you are willing to make the effort needed to become a serious trader...you know how to create spreads and have a basic understanding of volatility. Most importantly, you have an understanding of risk. You understand how the variables interact, and how to employ them to suit your outlook. (This book) should be considered basic; in other words, able to impart fundamental awareness, not simply transmit rules"

Don't let the price mislead. It's excellent value, and provides a much wiser introduction to options than many others
 
I followed some of Phil's posts, and I browsed the book he co-authored. In my opinion his book is not good for beginners, and I didn't find it particularly useful anyway.
Quote from Samson77:
I haven't read this book personally but the author is a frequent poster here in ET and from what I can tell he knows his stuff and is very generous with his time and answers questions for beginners.

http://finance.groups.yahoo.com/group/optiontradingcoach/
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