just curious to see if anyone here has come across a book or books on options trading with the practitioner in mind? My lecture slides for instance, go through black scholes and the ins and outs of the derivation, ito’s lemma etc, but they are very light on how the BSM is actually used in practice (ie reality). Any ideas?
In my opinion there is one modern author on the subject of practical options trading who stands head and shoulders above the rest, and that is Euan Sinclair. His most recent book is Volatility Trading, and he has another book out soon.
Sinclair covers actual strategies, along with questions of liquidity and position sizing that I never see in other options books. He writes clearly, and (though I have not evaluated its quality) includes source code.
Though @Giovanni recommends Hull's classic, I find that text to be more of an academic encyclopedia than a practical guide. It is a great book but its scope is too broad to provide the detail you need. These days, I rarely look at Hull because for each subtopic, there is typically a more detailed book or article that serves as a more complete starting point.
One other classic book, that contains a lot of the practical thinking you might want, is Nateberg's Option Volatility and Pricing. It has often been treated as a more intuitive and practical companion to Hull, with good reason.