Having been in the options business for over 10 years, I’ve had the opportunity to read some of the absolute best books on options trading in the marketplace. As a grizzled vet I tend to read a lot and have recently been focusing a lot of my reading time on more specific areas of the options business such as expiration trading and dispersion / correlation trades. So when asked recently for book recommendations for someone looking to break into the options trading business I had to dig deep in the crates to come up with a solid book that would prepare a burgeoning options trader for upcoming interviews…

For a comprehensive background into options trading, the history, dynamics, general applications and the like you can’t go wrong with Hull’s Options, Futures & Other Derivatives or Natenberg’s Option Volatility & Pricing. These are absolute must-haves for anyone interested in a career as an options trader. Chock full of information, these options books come off as rather dry and may not help you as much if you’re looking to cram for a pending interview. Cramming aside I would definitely make sure you pick up a copy of both (and it wouldn’t hurt to drop the names Hull and Natenberg at some point throughout your interview).

For someone with limited time but mathematically inclined, I would absolutely recommend Jeff Augen’s The Options Trader’s Workbook for an overview of options trading. Instead of banging you over the head with historical facts or boring you with 10 pages on the derivation of Black Scholes, The Option Trader’s Workbook takes a problem solving approach to learning options. From option pricing basics to more complex multi-legged trades, Augen delivers the material in an easy format with accompanying problems to make sure you comprehend the material as you progress. Working through the problems is the best kind of training you can get outside of actually trading options with your own money on the line, which I highly suggest for anyone serious about learning the options business!

The Option Trader’s Workbook includes close to 150 problems with accompanying detailed answers.The questions become harder and more complex throughout but working them out in the end should prepare you to dominate most options trading interviews. So definitely pick up Jeff Augen’s The Options Trader’s Workbook and happy trading!