Option Volatility & Pricing by Sheldon Natenberg
If I were to recommend one book to learn about options and options trading, it would be Option Volatility & Pricing by Sheldon Natenburg. This book does an outstanding job of breaking down the fundamentals of options, slowly building up to more complex concepts. Unlike many other authors, Natenberg uses very little exotic math, and illustrates many important concepts in an easy to understand manner. Many traders consider this book to be the “bible” on options trading and it is mandatory reading for most proprietary firms and derivatives training programs.
Chicago Board of Options Exchange (CBOE) website
Another trading resource is the Chicago Board of Options Exchange (CBOE) website (www.cboe.com), which has many functions for all levels of traders including seminars, online courses as well as the opportunity to trade with “paper money.”
Livevol Stock Options Trading Software
The trading tool that I use to find many of my trade ideas is from a company named Livevol, Inc. (www.livevol.com). Its software was designed by traders for traders, and is an outstanding way to scan the options world for trading opportunities without a degree in computer science. Livevol excels in volatility comparisons, order flow recognition and historical pricing.