Best Books for Futures & Options

The following are one of the best books for futures and options in India.

1. Fundamentals of Futures and Option Markets: John C Hull

Traders enter into the commodity markets. Their primary products are related to the field of agriculture, mining, etc., such as wheat, rice, gold, platinum, and other minerals.

The process of trading is similar to the way an option futures trading is conducted on companies’ stocks.

Traders can make use of the book, “Fundamentals of Futures and Option Markets‘ written by John C Hull, a reliable source of information.

A trader from this book can understand the Options, Futures and Risk Management better.

Being directly associated with the investment banking firms, John C Hull, does provide the best advice to his readers in various critical issues related to the Futures and options markets.

One of the important components in estimating the future options in the stock markets is the time value of options.

Note:

He made a vivid description on swaps and derivative instruments and the interest rate futures.

‘Fundamentals of Futures and Option Markets’ Journeys from First to Ninth Edition:

Further, over time, from the first edition to the ninth edition, the book has transformed itself into a best learning guide to the undergraduate students and the traders at stock markets.

In his initial editions Way back in 1991, in initial editions, the author did make student friendly reviews. Hardly calculus was introduced in the subject of discussion just to avoid confusion to the non-mathematical background readers.

John C Hull produced numerical examples on real-life situations just to guide students who were preparing for their specific purposes.

The book is a confluence of theoretical and real time practical aspects of futures options trading and finds its place to be bible in the hands of practitioners.

Currently (2023), the ninth edition of the book is in print, it offers a vivid, easy to grasp introduction into financial mathematics.

2. Trading Options Greeks by Dan Passarelli

The book ‘Trading Options Greeks’ written by Dan Passarelli does cover option trading in detail and provides extensive knowledge about it.

In fact, the book serves as an essential source of input and is highly educational to professionally driven traders in the stock markets. Dan Passarelli discusses the parameters that are inclusive in option trading both in educational and practical perspective.

The entire book portrays the practical experience obtained over years as a professional trader to benefit the young trading aspirants and his counterparts. Any aspirant can obtain the principles adopted by the veteran trader on the option trading in this book.

According to him, the main elements that create an impact on the option trading are the direction, time, volatility, interest rates and the dividends often denoted by Greek alphabets.

The analytics are explained in a manner that helps the traders overcome the complexities of option trading, thereby avoiding a debt trap thus resulting in making good money.

The book ‘ Trading Options Greeks’ has been forwarded by William Brodsky, Chairman & CEO of the Chicago Board Options Exchange ( CBOE).

Trading Options Greeks Details:

Stock markets are highly volatile and option traders have to maintain a highly practical approach and Dan Pasarelli has explained with the greek terminology, delta, gamma, theta, vega, and rho and says it is the best technique for evaluating the option trading irrespective of the market conditions.

In the second edition release, a reader will find these tools such as delta, gamma, etc., applied to evaluate the option trading to obtain a deep insight of the stock markets.

These Greek techniques enable traders to determine an accurate pricing and these analytics can further help traders in exploring a wide range of opportunities.

 Trading Options Greeks in Nutshell:

The second edition of the book (Trading Options Greeks) contains new material that covers examples with newer market conditions.

The updated second edition has the inclusion of advanced option trading and more information on spreads, trading volatility, put-call parity, and synthetic options.

The options trading analytics expose the best means to explore dynamics of option pricing and take the trading to the next level.

The readers will realize that to have long term options trading go high they must seek a comprehensive understanding of the greek techniques.

The book provides a better understanding of the Greeks and the effective management of the stocks at options trading to make higher profit margins.