5 comments about Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions, 2nd Edition (Wiley Finance).

1. What is a "real option"? This kind of option is not a derivative instrument, but an actual option (in the sense of "choice") that a business may gain by undertaking certain endeavors. For example, by investing in a particular project, a company may have the real option of expanding, downsizing, or abandoning other projects in the future. Other examples of real options may be opportunities for R&D, M&A, and licensing. In corporate finance, real options analysis or applies put option and call option valuation techniques to capital budgeting decisions.
   
   This book is written for both the beginners and as those skilled in real options applications. The book is organized in such a way that each chapter has a brief summary and a list of questions, so you can construct a small exam based on these questions.
   
   The book provides a refreshingly new view of evaluating capital investment strategies by taking into consideration the strategic decision-making process. The book provides a qualitative and quantitative description of real options, the methods used in solving real options, why and when they are used, and the applicability of these methods in decision-making. In addition, multiple business cases and real-life scenarios are discussed. This includes presenting and framing the problems, as well as introducing a stepwise quantitative process developed by the author for solving these problems using the different methodologies inherent in real options. Included are technical presentations of models and approaches used as well as their theoretical and mathematical justifications.
   
   The book consists of two parts. The first part looks at the qualitative nature of real options, providing actual business cases and applications of real options in the industry, as well as high-level explanations of how real options provide much-needed insights in decision-making. The second part of the book looks at the quantitative analysis, complete with worked-out examples and mathematical formulae.
   
   Pros:
   - Has a good introduction to real options, suitable for the beginners
   - Lots of remarkable, real-world examples
   - Gradually progresses from basic to advanced techniques
   - Provides some basic financial statement analysis concepts used in applying real options
   - Compares financial options with real options; provides major similarities and differences
   
   Cons:
   - The accompanying CD disk includes the demo version of "Real Option Analysis Toolkit" (demo) and "Crystal Ball Software" - both expire briefly after the installation.



2. It is a real-hand-on book! Although the book looks very "huge", the analysis helps me to prepare MBA class.



3. Mun's book shows how real options problems, like those faced in the real world, can be solved. Other books may provide a better introduction to real options concepts, but the methods employed are suitable only for very simple problems. Where other approaches require that you develop your own lattices (or other solutions), Mun shows you how to use his Supper Lattice Solver and Monte Carlo simulation software to solve these problems. I am convinced that his approach will not only facilitate the solution of these problems, but will also be more readily accepted by management. I look forward to acquiring Mun's software and applying it in practice.



4. As practitioners and academics continue to grapple with quantifiable uncertainties in real asset decision making, the debate about real option models will no doubt continue.
   
   Johnathan Mun's second book and more specifically his case study approach allows practitioners from diverse industries to enter the debate with simple excel asset pricing skills. To my mind there is no better pragmatic work on the topic than the second edition of Real Options Analysis. With the book in one hand and the robust SLS software up on the screen - framing, pricing and understanding real options is pretty straightforward.
   
   Two points to note: After 30 days, just as you begin to get hooked on the superb software it is likely to gently expire. That's when you are saved by the second point; the author is hugely supportive - His `one line insights' in response to specific queries made this a great purchase.
   
   Edinburgh. Scotland.



5. This was my first book on Real Options. After this, I complemented my knowledge with more accurate researches on the theoritic foundations on the subject (eg. Trigeorgis and Copeland).
   What I liked of this text is that it was a soft landing into the Real Option world, with a simple and easily understandable description. Its major pro is to present transparently the basics of a concept that is often approached at a too high and formal level.
   What I did not like is the fact that few chapters at the end were not really useful but full of stuff and formulas with no explanations that cannot practically be used. I had the sensation they were out of place, since I could grasp their meaning only after passing to more comprehensive books.
   One more criticism is that you don't understand the effect of the difference between private and public risk in real options evaluation as you do with other texts. However, I still consider this the book where I formed my basics before being able to master some other more detailed book (but also more difficult to master). The Crystall-Ball package was also a nice surprise. At the end, if you consider the price and the content it was surely good value for money even though it's not a masterpiece.

5 comments about Pring on Price Patterns : The Definitive Guide to Price Pattern Analysis and Intrepretation.

1. A simple review will not due this book justice. If you are serious about trading for a profit in any market, then this book is a must have. Anything on the internet about price action trading is derived from this book. Buy it! You will wish you did it sooner!



2. Book arrived within the specified time and in the "as advertised" condition. Very satisfied with this supplier.



3. Best book I've read in this category. The dvd was a nice bonus with the book. I will be buying more books by Pring.



4. I couldn't give it 5 stars because I haven't finished the book yet, about 1/2 way through. But if it keeps on track it should be a 5 star book. I've learned quite a few things in the first half of the book. He goes over projecting moves from trend lines, trend angles, validity and exhaustion. Doing the same for rectangles and most of the other patterns. I've skimmed over other parts and he talks about pin bars, which I have to say are one of the more reliable patterns. I would say it's the best book on the subject I've read so far. Although I have encountered a few free sites that are easier to read because they cut out all the fluff and get to the grit of the matter even giving percentage of success etc. However, over all I would rate it as a must read.



5. This is an extended version of the some parts of the author's book "Technical Analysis Explained", especially the parts on chart patterns. Nothing much added to this subject by thicking those parts of the above book. These parts are better presented (brief and short) in the original source.

5 comments about Covered Call Writing with Qs and Diamonds: Double-Digit Returns on Ready-Made Portfolios.

1. If you know nothing about coverd calls, this book has a lot of info and is useful. However, if you already have an average knowledge of covered call writing I don't think you will find anything new in here. Bonus: it provides excel spreadsheets to track how well a trade might go.



2. I am an experienced investor that initially was somewhat intimidated by the world of covered call writing. But this book made the concept easy to understand and the application easy to follow, as well as quite profitable! Kadavy's approach is conservative, and well reasoned. I especially appreciate the spreadsheets that are provided. After reading this book I also ordered "Covered Call Writing With Exchange Traded Funds (ETFs)", and "Put Option Writing Demystified," which were also very good.



3. This book is fine for the "housewife," or "elementary teacher," or a "journalist or liberal arts graduate" who wants an elementary introduction into covered calls... and then only if... they have no finance, or financial analysis knowledge. But... if you've got that type of education and experience... take a pass.
   
   Any "B School" graduate could have written this book. The author fails to provide any real insight into the practical stratigies at the bottom of a market cycle, or specific "how to" guidance. Obviously, selling covered calls at the bottom of a market cycle, will yield very disappointing results. This is a strategy that's fine for the top of a market, or sideways market - but for the bottom of a market cycle, you're going to want to be on the buy side of the calls, or you're going to miss the big gains.
   
   Nor, does he provide any insight into "how to read the market trends" (technical analysis) to alert you as to what type of market you're in, or about to experience, which should guide your strategy.
   
   A more cycnical reviewer would suggest... the guy's a charlatan.
   
   But... hey... that's just me... I'm just sayin...



4. I'm was sitting on potential profits watching stocks go up and down
   now thanks to the step-by-step instructions I schnitzel a nice profit.



5. If you want to find out how to take 12% out of the market in cash per year, this book is for you. It's clear, concise and comes with instructions on how to create P/L templates on Excel. In addition, they'll send everything you need to get started on Excel in your email for free. The book set-up moves from simple on to complicated, lots of graphs and plenty of examples. My problem, which may be not a problem for others, is that pesky 12& gain per year. If you've got plenty of investible capital, that might be enough. But, if you don't, it isn't. For me, an annual return of 12% just isn't enough when you figure in your time and trading fees and the fact that you're essentially selling covered calls on the underlying Qs and Diamonds. On the other hand, Kadavy states up front that this is a 'conservative' approach to using options. The best thing about this approach is that you no longer have to chose from the confusing universe of optionable securities, all you use here are QQQQ and DIA. Simple and conservative.

2 comments about Investing in Futures and Options Markets.

1. Dr. Catlett's book covers futures and options with real life situations. Real life situations include hedging against losses from various situations. I had the opportunity to have Dr. Catlett for a Professor, teaching financial futures markets class at New Mexico State University.

   The book covers how to hedge and how not to hedge. He walks you through all of these topics to fully understand the process. There are tables and charts that to help understand the process. After completing the book you will have a great understand of futures and options markets.

   The book is a great reference for futures & options trading!




2. This is a good book. I had the privelege of recently attending a seminar by Lowell Catlett. He is pragmatic and thorough and yet, at times, witty. This book is written much the same way.

   The book is very thorough. It takes you through the history of markets, how they evolved and how they are used today. It provides insights and some "Dos" and "Don'ts". He really makes you think.

   It uses a lot of examples that are clear and very helpful. This makes it an excellent reference book for future trades.

   The only negative I found in the book is one of its virtues, it is too thorough. I think some of the discussions, such as grains and livestock, are similar. The book could have been shortened by about 10 - 20 percent by combining similar options , commenting on the differences and providing an example.

   Overall, I rate this an excellent book! I recently got an MBA from a top school and I learned a ton. This book is a must for the serious options trader who wants to build a good understanding of the investment methods.

5 comments about The Eurodollar Futures and Options Handbook (McGraw-Hill Library of Investment and Finance).

1. This book stands alone as the go-to volume for anyone interested in understanding what Eurodollar futures are, how they came to be, and what they are used for. This should come as no surprise, given that the author had a major hand in the invention of the Eurodollar contract. More abstract issues for professional traders, including convexity, strip valuation, and TED spread arbitrage are also covered, in easy-to-read yet authoritative theoretical terms.
   
   Considering the move made by the market from the pits to the screens, the time for another revised edition may be drawing near. Systematic arbitrage of the Eurodollar complex (spreads, packs, bundles, etc.) has never been more available to the sophisticated amateur. If there is any aspect of the market that Mr. Burghardt neglects, it is a thorough treatment of Eurodollar calendar spread arbitrage.



2. Great book with very detailed examples on the relationship between different fixed income instruments. My only complaint (and it is a very minor one) is lack of problems at the end of each chapter to help solidify the concepts. Otherwise, an excellent book.



3. This is a very practical book with detailed examples to help reader with the basic concept and Eurodollar Futures and Options. Very useful for beginners in this field. The last half of the book is dealing with more advanced topic more suitable for fix incoming researchers.



4. Clearly the best book on Eurodollar futures and options. The book is a must for anyone involved in fixed income securities.



5. Having just finished reading the author's treatment of bond futures in the 'Treasury Bond Basis,' I was happy to see that Burghardt was updating some of his material from the early 1990s on Eurodollar futures. The 'Bond Basis' was an excellent and thorough analysis, and 'The Eurodollar Futures and Options Handbook' follows the same trend.

   He provides an excellent overview of the institutional details of Eurodollars and their uses. The book is at its strongest when dealing with issues of the convexity bias and also scores high by not neglecting important issues like the stub period. Perhaps my favorite chapter was on callable bonds and the extension/compression risk, which, while a little misplaced in a book on Eurodlllars, still provided a very lucid explanation of the relevant issues.

   With regard to options, the author touches upon some of the interest strategic combinations using serial and mid-curve options, but I feel that he could've delved a bit deeper in this part of the book. It's the only area in which I felt the book was somewhat lacking.

   Having said all that, if you're looking to learn about Eurodollar futures, I can't imagine there's a better book out there. This is an excellent compilation of a number of Burghardt's research from the 1990s together with more recent updates. Even if Eurodollars are not your main area of expertise, this book will still help you to gain a more solid understanding of many of the pertinent topics in fixed income.

2 comments about CBOT Handbook of Futures and Options.

1. This book has helped me understand a lot of difficult concepts and jargons. Definitely recommend this book if you're new to the trading industry.



2. Very useful, full of information regarding futures trading and its history. Great for beginning traders and somewhat experienced traders as well.

5 comments about The Complete Idiot's Guide to Daytrading Like a Pro, 2nd Edition.

1. Recently I decided to try short-term trading. Soon I realise that I need to learn more. What is going on behind bid/ask postings, how to read and interpret Level II quotes, what is Naqdaq TotalView, what advance platforms are available today, etc? So I went to local bookstore and browsed through the section. Didn't find anything satisfactory so bought this book as a temporary solution. After an hour of reading I decided to write my first book review on Amazon.com. This is simply the best book I could hope to find on the subject: precise, structured, brief yet informative, state-of-the-art information. Excellent book overall. I highly recommend this book for beginners and may be even more experienced traders that didn't keep up with the latest advances. My only complain is that the indexing is not detail enough.



2. New edition just out. More sensible approach, and updated. Definitely worth the money, especially for new traders.



3. This particular book is fine as a general reference on the stock market, but frankly beginners will need more concrete and to the point strategies to make it as online stock traders.
   
   The reality is that the stock market doesn't care if you are a beginner. It will gladly take your money away if you don't know what your doing. So the bottom line is, you better be PREPARED before you even think about making your first trade.
   
   Stock trading is a very competitive field and in order to succeed you need to FOCUS on a set of simple strategies that you can implement without hesitation.
   
   This game is all about buying and selling according to your set ups. So the clearer your set ups are, the easier for you can be to make a profitable decision.
   
   Hopefully some sites on the web do offer more relevant and updated stock trading information. One of those sites is Sharp Trades ( SharpTrades com )
   
   They focus mainly on short term momentum stock trading strategies, that in my opinion are easier to implement than many other technical systems outhere.
   
   Stock trading doesn't have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.



4. If your stock market experience is limited, this book will serve as a good introduction. The material is basic and presented in an easily understood format.



5. First of all, the title of this book is PRICELESS. If I was a complete idiot (and I'm not far from it), I would want to start day trading and as a matter of fact, I did just that.

   About half the information in this book describes the workings of the stock market. The other half goes into some information abou the ins and outs of day trading. I'm sorry, if you're going to start to day trade, shouldn't you already know about how the NASDAQ and NYSE work? Why spend half the book talking about it?

   Anyway, I read the book and entered one of those mock stock market games. They gave me $500,000 and a margin account so that I can trade up to $1,000,000. The game was not really geared toward day trading, there were different limitations and they couldn't offer Level II quotes (for a free game) so I had to "Swing Trade". I kept some positions overnight but I used the techniques mentioned in this book. So, the result (drum roll please): I started with a half million, I ended with $365,000 (a $135,000 loss). I came in 3,700th place (ouch!).

   Ah well, To All Idiot's Out There: Don't try this at home! :-)

1 comments about The SABR/LIBOR Market Model: Pricing, Calibration and Hedging for Complex Interest-Rate Derivatives.

1. Having to deal with Exotic Interest Rates product professionally, I had to get the latest Rebonato's opum. I've found in the past that there is much to be annoyed with this author (he gets fairly deep into the details but not necessarily at the level where you can re-implement things yourself), but also very frequently insights you would not get anywhere else: in the case of this book, the couple of pages where he explains what makes a good model should be mandatory reading for any aspiring "quant" thinking about applying the tools of his trade to the dirty world of finance. This is much better stuff than the more common-place fare he served in his "plight of the fortune tellers". Recommended as such. If you're buying this for the specific model that Rebonato advocates, unless you're very deeply involved in Rates structured products, I don't think you're getting a bargain.

3 comments about Money Management Strategies for Futures Traders (Wiley Finance).

1. This book was released in 1992 -- and is still as essential today to traders as it was 16 years ago. It seems like it is a secret gem of a book since there are only 2 Amazon.com reviews posted (both of which are five and four stars) in all these years.
   
   Maybe it's time for this classic to be re-discovered by a new generation of traders and investors. Surprising to me that the book "The Trading Game - Playing by the Numbers to Make Millions" sells so many books. The gimmick title "...Make Millions..." should make you wonder if it is authentic -- get Professor Balsara's book instead and learn the true principles of managing and understanding your risk.
   
   There is a reason Balsara's book is cited by 34 other books (most of which are written by the master traders of our time) and it is because this is the textbook that the master traders refer to in creating their money management strategies. This book has the formulas and the theory you need to manage your risk and avoid the risk-of-ruin.
   
   I found out about Balsara's book from Bennett McDowell, he recommends Balsara's book in his book "A Trader's Money Management System":
   
   A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin (Wiley Trading)
   
   McDowell encourages his students to use Balsara's risk-of-ruin tables when designing their own personal money management system. It improves your bottom line when you calculate your current payoff ratio and win ratio and accurately determine the risk you should be taking on each trade by referring to the risk-of-ruin tables. Balsara also covers Optimal F in detail, which is another way to determine the amount to risk on any one trade based on your current payoff ratio and win ratio.
   
   Of course, another great author on this topic is Ralph Vince and his latest book is probably the most thorough account of using Optimal F effectivly:
   
   The Handbook of Portfolio Mathematics: Formulas for Optimal Allocation & Leverage (Wiley Trading)
   
   For some traders they should risk 2% of their trading capital on each trade. For other more experienced traders they can benefit by risking 10%. The key is to do the calculations and know where you stand at any given moment.
   
   Do yourself a favor, buy Balsara's book, Vince's book and/or McDowell's book instead of "The Trading Game".



2. While a large percentage of individuals do not achieve financial success in the futures markets, traders who do succeed possess a solid understanding of risk and exercise a disciplined program of loss containment and money management. Nazer J. Balsara's Money Management Strategies For Futures Traders provides a wealth of materials for futures and stocks traders alike. The book is a must-read and a relatively easy-read for those who wish to enhance their risk management sophistication with complex tools and who believe that the best way to survive and prosper in the markets it to contain your losses, play defensively and let profits ride.

   All trading opportunities are not created equally and part of a trader's job is ferreting out the best markets to trade. The chapter on commodity selection presents four approaches to market selection, based largely on the work of J. Welles Wilder, the father of ADX (Average Directional Index Indicator) and RSI (Relative Strength Index). Here, the book is a good review of Wilder's ADX but focuses on the less-known aspect of his work: the commodity selection index. Wilder's approach uses ADX to identify futures yielding the greatest dollar-value price-moves for a given margin investment, in short, getting you in on the most appealing trades. Balsara also shows the utility of Wilder's price movement index when it is it is not possible to determine or estimate reward, thereby enhancing the analysis and return in mechanical trading systems. Sharpe ratios are also considered as a way of measuring risk-adjusted returns.

   The text gives useful approaches to managing risk through stop-loss orders by laying out the usage of time stops, dollar-value stops and volatility stops. There is also a presentation on how to survive locked-limit markets by creating synthetic options positions, spreads or offsetting positions in the cash markets.

   A studied read of this finance professor's work will help traders develop both the skill and the art of disciplined risk-taking.




3. I only wish I had utilized the statistical tools the author provides earlier in my trading career. However, I did find the book in time. Don't let the reference to statistics scare you. The author uses basic alegebra to aid you in trade selection and risk control.

   This book may not guarantee you success in trading, but I do believe that if one does not apply the basic money management principles presented by Prof. Balsara, sooner or later, failure in the futures market is almost certain.

   If you can't name the 5 basic steps of money management, I suggest you stop trading immediately, get this book with a couple of ticks worth of money you'll not be losing while your not trading. Read it a few times, set up your money management spreadsheet and may you trade with clarity previously unknown in your endeavors in the futures market.

5 comments about Sell Short: A Simpler, Safer Way to Profit When Stocks Go Down.

1. I like the book -- I wrote it - and I just noticed a review that found a glaring editorial mistake in the book. The reviewer found the book contained in an incorrect definition of a put, calling into question my credibility -- a good point. My defense is simple -- it was not there in the final galley proofs, actually it was, along with an estimated 1000 mistakes (no kidding) and I made a correction that did not make it into the printed version of the book. John Wiley is the largest and most successful financial publisher in the world and I can only assume the issues with the book are the exception that prove the rule of Wiley's excellence. In my defense, I have bee training options for 25 years,my newsletter service ChangeWave Shorts has been successful and has a loyal following and I can be found at [...] for those of you who want to see if I know what I am talking about before you buy. My thanks to the gentleman who discovered the mistake and if anyone has questions, contact me at mshulman@investoremedia.com.



2. This book is NOT about shorting stocks. The author specifically says multiple times in the book that he does not recommend ever shorting stocks. He does describe how you can play the short side of the market through option puts, but does not advocate or describe how best to short a stock other than to say, "...don't do it."
   
   I was sorely disappointed because I already know about options extensively. I trade puts long and short all the time. The problem with puts are that the spreads sometimes are too large, liquidity is too low, or they aren't even offered on many stocks that I want to trade on the short side.
   
   If you want to trade from the short side of the market using puts and are very new to the world of options then perhaps this book will be of use. If you want to learn about shorting - save your money.



3. Sell Short recommends a strategy using Puts to profit from Falling Stocks.
   In Chapter 3, Mr. Shulman asks "What Exactly Is a Put?" and then goes on in the paragraph that follows with an utterly wrong definition and/or description which would leave an investor/trader totally mis-informed of the definition of a Put. This one paragraph (which deals with the most critical concept for Sell Short - buying a Put option) shows the carelessness in writing and publishing the book 'Sell Short'. Given this carelessness, how can any reader have confidence in other aspects covered in the book by Mr. Shulman?
   
   By the way, John Wiley and Sons has published other books (example: Trade Options Online by George A. Fontanills) which cover their subject well and with care. I have also read several other books on options and each one of them is written with care for accuracy and clarity of concepts explained. I was disappointed with the glaring error in Mr. Shulman's 'Sell Short'.



4. The author correctly stated: "this is not a trading system". For disclosure my comments are based on about a 45 minute study of a friend's copy. This is a nice read especially for a beginner to get a further overall perspective of things, it is not a roadmap to quickly put money in your pocket which makes me question the validity of another reviewer here. As those in the know(many of whom have been there and tried that) will confirm selling short/playing the short side should not even be a part of the game plan in the management of a 6 or 7 figure 401k(playing with ETF(s) as you can't short) or that 6 figure trading account at a Scottrade. The one specific I take issue with is the suggested use of ETF(s) for playing the short game/side. They are far too inefficient vehicles, just look at the charts of the likes of a FAS, FAZ, or SRS and then try to explain to me how they in anyway accomplished in their own right their intended purpose over the last 12 or 18 months.



5. I just happened to purchase Sell Short in San Francisco prior to attending the 2009 Money Show in Las Vegas. Generally well written, I finished the book over the weekend before meeting the author. On the plus side, the author emphasizes collecting your own anecdotal evidence before making a trade. This leads to an emphasis on fundamental over technical analysis. Over the past 30 years, I have made significant success using this approach. On the negative side, the stories that the author uses as examples, while good ones, tend to be repeated throughout the book. I would definitely purchase any new books published by this author. My recommendation would be that he be a little sharper in the use of techical analysis as a second step in his process. Additional recommendation: Go to hear this author speak at one of the money shows. Unlike so many salesmen at those things, he knows his business and articulates it well.