Any good books to learn the Greeks?

Discussion in 'Beginner Traders' started by Lifeson, Nov 28, 2017.

  1. Lifeson

    Lifeson Member

    Hello Everyone - I'm starting my journey into the Options world after a few years scalping futures ( via depth of market ) and some algo FX trading.

    I have been trying to understand the relationships of the Greeks and how they relate to the trade (and each other) over time. Thus far, the materials I have found have been extremely basic or on the other end of the spectrum (academic).

    Is there a recommended reading list to help get me up to speed? or is this more of a "time in the saddle" type of learning, where you need a few hundred trades under your belt to internalize everything? Perhaps OptionVue will help me visualize what is happening?

    To add a bit background on my proposed path, I should say my focus is on income generating trades. I'm inclined to try one of Sheridan's courses that primarily focus on Weekly Options for a small account. My hypothesis is that this would foster a more active trading style that would have limited strategy adjustments as I learn. After getting comfortable with shorter DTEs, I thought I would try Locke's M3 training and graduate up to longer time frames that require adjustments. I also plan to subscribing to RTT for additional insight. Any comments/criticisms/suggestions on a learning plan are welcome.

    On a side note, I'm really happy I found this forum. I thought had one of the best trading communities, but the knowledge presented here by members is truly without peer.
  2. Lifeson

    Lifeson Member

    Thank you everyone for the suggestions. I've purchased all three books and I'll be studying them over the holidays.
    I'm also going to take the groups advice and look towards longer term DTE strategies. I'll keep you posted as to how the journey unfolds.
  3. comintel

    comintel Member

    Could you kindly share the names of the books that were suggested, to help others? Sorry if I am missing that these appear in another thread or some such.

  4. Kevin Lee

    Kevin Lee Well-Known Member

    Lost a few post in this thread too...
  5. Lifeson

    Lifeson Member

  6. comintel

    comintel Member

    An excellent short list - thanks for listing them!
  7. Qsys

    Qsys New Member

    For learning the greeks, I recommend firing up R and just playing with computing them yourself. You can change all the inputs and observe/graph the changes in the outputs. I've attached a small script that demonstrates this. The packages fOptions and derivmkts provide the fundamental BlackScholes computation.

    Attached Files:

    Lifeson and Ice101781 like this.

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