5 comments about Profit with Options: Essential Methods for Investing Success.

1. The book is for a reader with some degree of investment and trading experience. Unlike the previous books by the author (Options as a Strategic Investment and McMillan on Options), this one covers each phase of the options trading process step-by-step, reinforces individual concepts, and thus allows you to hone and refine skills--in essence, a workbook or study guide. In other words, the aim of this book is study in repetition. You will revive in memory what you already new, and will probably pay attention to some minor new tips.
   
   The unique characteristic of this book is that each chapter ends with a set of review questions and answers that will assist you in absorbing and implementing the material covered.
   
   Chapter 1 moves right into the components of option price, using historical and implied volatility
   to formulate your option trading strategy, and understanding the advantages an option model can provide. Plus, LEAPS, futures, and trading technology are each treated in detail.
   Chapters 2 and 3 explain how to use options as both direct and contrary indicators, with examples showing how each can predict market direction and help you decide which options to buy under both scenarios.
   Chapter 4 teaches you how to incorporate system trading into an overall options game plan and illustrates the value of taking the system approach. A variety of systems types are outlined that are applicable for both short-term and long-term investors.
   Chapter 5 presents powerful methods for using options as "insurance" and portfolio protection, which is one of their key strengths.
   Chapters 6 and 7 conclude with various strategies for profiting from trading volatility. I start by viewing volatility as a strategic indicator, and then move into both forward and reverse "skew" and spreading strategies. I then provide a more in-depth look at volatility analysis, the reasons behind volatility changes, and highlight the author's favorite strategy plus personal criteria for buying straddles, "follow-up" action, and selling naked options.
   Each chapter of the workbook can stand on its own, but taken together, they form the basis of a well-rounded options trading program. With the end-of-chapter questions provided, you can test your knowledge of the concepts, techniques, and systems featured in Profit with Options before you need to put them into action in the real trading world. And this learn-by-example workbook should prepare you for making the right moves at the right time, while reacting swiftly to opportunities that arise in the fast-paced options arena.
   
   As a conclusion, this hands-on guide will complement the previous two works by the author. If you didn't complete these two works, I don't recommend to start with this one.



2. This book could probably be considered the Chevy in McMillan's fleet, with McMillan on Options and Options as a Strategic Investment standing as the Cadillac and Corvette, respectively. It's a worthwhile addition, but if you're new to McMillan, you'd probably be better-served by one of his more well-known works.
   
   This is a relatively short book that provides some tools for using options as direct or contrary indicators, and actual strategies for employing options to profit off expected movement in price or volatility. The book also provides some good guidelines for evaluating indicators like the put/call ratio (index and equity-only), VIX (old VIX, now VXO), and how to interpret volume in an options chain for possible signs of predictive insider trading. Later chapters get a little more complicated, covering some strategies for volatility buying and selling, etc.
   
   The "workbook" end of this volume is rather thin, basically comprised of 12-20 questions at the end of every chapter covering what you've learned, with an answer index in back.
   
   If you're a McMillan fan or new to options, you'll probably like this book. Otherwise, check into his better-known volumes first.



3. I am jsut wondering why many people take this book as another 'Bible' leveled book. It sounds exactly like an insult to all those real 'Bible' books.
   
   Some other reviewers are right: the editting is lousy, the graphs are irresponsible,...., and some other over a thousand flaws. One can expect to learn more by simply browsing Optionetics forum.



4. I have read McMillan's other books and found them interesting and educational. But this book does not have any eyeopening material. If you are a beginner in options then this is not for you; if you are not a beginner then this book is not for you also. You probably know how volatility affects option prices etc., The author has just filled the pages with many historical charts of stocks. Instead he could have just illustrated his points with a couple of charts for each topic. Instead of a book this just deserves to be a booklet.



5. Profit with Options seems to have been thrown together from a series of talks, with little attempt at editing. The book is replete with mistakes that render the book useless to a novice options trader and frustrating to read for an expert.

   The figures are particularly bad, with incomplete or incorrect legends. On page 9, for example, are shown profit graphs for puts and calls. One problem is that the graph for calls is labeled "Put purchase" and the graph for puts refers to buying a call. This is worse than useless to a beginner because it is flat out wrong, and makes the expert wonder whether anything else in the book is sufficiently reliable to trust. Another problem with this figure is that neither graph has any numbers on the axes.

   Poor labeling of figures renders indecipherable many of the figures in Chapter 2, which deals with options as direct indicators. Figure 2.1, for instance, does not provide dates on the X-axis, so when the text says something about what happened on July 29, it's difficult to know where to look on the chart. Many of the charts in this chapter include several data plots, apparently including price and option volume, but the plots are not labeled. Sometimes the text refers to put volume and call volume, but the charts don't indicate which is which.

   The text often is no more clear than the figures. The discussion on stops on page 133, for example, states: "So you gave back a lot by waiting for your stop to be hit. Or did you Will, in this case you did, but what if the S&Ps had gone on to 1335?" Who the heck is Will, and what does he have to do with anything?

   The "review" questions are not really review questions. I expected them to review subject matter that was covered in the preceding chapter. However, the questions are directed to material is not covered in the chapter.

   I'm going to try a different book on options. It's just too frustrating to get anything useful out of this one.

5 comments about LEAPS: Long-Term Equity Anticipation Securites: What They Are and How to Use Them for Profit and Protection.

1. If you want to learn about the many LEAPS trading strategies in existence, this book is for you. If you want to learn the theory behind LEAPS (and options) then you have to buy a different book.



2. This is probably the worst written book I have ever read. The author obviously understands the topic but it is one thing to know a subject and another thing to teach it. I am a physician and I have read my share of books.



3. This book, published in 1993, is now a classic and the definitive guide to trading LEAPS. It provides an excellent introduction to LEAPS and takes the pain to explain how LEAPS differ from traditional options. If you already have knowledge of options, this book will be a breeze to you, thanks to the author's lucid and humorous writing style. Do keep in mind that LEAPS are more than just longer-term options; pricing them using BS, for example, would be quite wrong.

   Which brings us to the drawback of this book from the early 90s. Much as changed to LEAPS -- the demand, the valuation methods, the trading mechanics -- since 1993, and this book would have remained great had it been updated. As it stands, you should definitely use it in conjunction with the web to make sure you get the latest info on these securities.

   One last thing: if you are set on trading LEAPS, make sure your broker can accommodate it. My online broker is great for trading options, but it turns out they won't allow LEAPS for accounts less than $50k, which include mine.

   In short, I recommend this book highly as a primer to LEAPS. Read it from cover to cover and make sure you duly understand all the RISKS involved, not just the potential gains. Good luck!




4. LEAPS is a helpful manual and it can be followed by readers who have basic knowledge on options. Roth analyzes in a very vivid and enjoyable way LEAPS and offers to the investor all the necessary background. I really enjoyed reading it.



5. This book is clearly written and was well worth buying. I wish I could benefit further from this man's work and knowledge, but unfortunately he died several years ago.

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 Real Options, Revised Edition: A Practitioner's Guide.

1. Is a good book, however, be aware that you need a very good foundation in finance and valuation. Do not pretend to learn ROA with gaps doing a simple NPV excersice. THE BAD its really a shame been a Practitioner's guide not found the end chapter solutions to the problems, even giving you a supposed internet address to obtain it. The address does not exists.



2. The book satisfies someone who is interested in alternative concepts on how whether widely accepted view of calculating the estimate of future project or ROA gives more precise estimation.
   
   Good graphs, easy to read but good to know simple concepts like SML and CAPM model before reading the book



3. This book is a little confusing but if you have a background in finance, it is very helpful. It is also a valuable book for anyone, especially with the way the market is.



4. I'm feeling very frustrated with this book, and here's why. The text contains sample questions, and directs to a website for the solutions. The website requires registration in order to access the material. After filling out the necessary details, I received an email from the publisher stating that I did not qualify as I am not a lecturer. I pointed out that the text claims to be a practitioners guide, not a lecturers guide. After numerour emails back and forth I've given up - I'll return it instead.
   
   Most curiously I was never offered to purchase the material, so I can't even feel conned - just pissed-off.



5. I regret not requiring this text for my students this semester. While there are a few typo's, that is not the point, as the problems are all easy to work out and solve.
   
   A very, very good book. If you are teaching a senior level course that uses even just a few weeks of real options (like my engineering economy course) use this book! You can cover the whole book in 10 or 12 lectures. The end of chapter problems (while a trifle scant) are well done!

5 comments about Martingale Methods in Financial Modelling (Stochastic Modelling and Applied Probability).

1. It was good condition same as described and good cost.
   Also, it takes exactly what they said to be shipped.
   Thank you.



2. This book takes you through the math of finance step-by-step, passing through very simple examples first and then slowly adding complexity to the models studied. It is written very clearly and the prerequisites to reading this book are only some basic notions of probabilities (sigma-fields, probability measures).
   
   Sometimes, the problem with math books is that they are "dry" and contain only a succession of theorems and proofs. In this one, the authors make a point of explaining in detail how different theorems and models relate to each other, and make extensive comparisons between them so that you get a better feel for how they work in practice.
   
   The book is primarily a math book and can be light on market specifics. Do not buy this book as a practical "howto" in derivatives trading.



3. This advanced text provides an excellent account of the current state-of-the art of options pricing/hedging models and interest rate term structure models. The book is accessible to both advanced practitioners of mathematical finance as well as to pure researchers in the field.
   
   The book is in written in a mathematical style and contains rigorous proofs of many results. However, the main focus of the text is to describe the frontier of knowledge in the subject. Each section contains copious references to the literature and is so current that several references are to working papers. Many sections detail open problems and other areas suitable for scholarly research.
   
   In their second edition, the authors provide an extremely useful critique of each modeling paradigm that they investigate. They also provide evidence for their position in the form of literature references which instruct the reader as to the shortcomings/limitations of a particular model. This information should prove quite valuable to model practitioners and implementers.
   
   The authors assume an advanced background from the field of stochastic analysis, although they do provide an appendix which summarizes key results needed from the field. For the stochastic calculus prerequisites, I recommend Rogers & Williams Diffusions, Markov Processes, and Martingales: Volume 1, Foundations and Diffusions, Markov Processes and Martingales: Volume 2, Itô Calculus. Suitable prerequisites are also covered by Karatzas and Shreve in Brownian Motion and Stochastic Calculus. A good foundation in arbitrage pricing theory is also needed. I recommend the nice treatment by Bjork in Arbitrage Theory in Continuous Time.
   
   The book is divided into two parts. The first part deals with options pricing in equity markets. Chapter 1 sets premlinaries required for the arbitrage theoretic framework, while Chapter 2 has a very nice treatment of discrete time models and finite financial markets.
   
   In Chapter 3, the authors develop the Black-Scholes model along with the Bachelier model using arbitrage techniques. The models are compared and used as benchmark continuous time models and form the basis for all subsequent analysis.
   
   Chapter 4 provides a nice survey of techniques used to price/hedge options in foreign equity and currency markets. The authors assume familarity of the basic workings of foriegn markets.
   
   Chapter 5 is a terrific chapter on valuing American-style options. The American call option is thoroughly studied and approximation techniques for the American put option are introduced. The explicit derivations of the formulas are referenced to the literature.
   
   Chapter 6 provides an introduction to exotic options, although the authors vary their use of the term 'exotic' to meaning 'not a standard European-style or American-style' in this chapter to meaning 'no readily available liquid market' in Chapter 7. The descriptions are quite accessible and the basic properties of the options are described along with pricing formulas (assuming the Black-Scholes framework).
   
   Chapter 7 provides as complete an accounting as I have ever seen of the generalizations of the Black-Scholes model and motivates this from the point of view of volatility surfaces. Many of the well-known models are studied in detail, such as CEV, local volatility, and mixture models. The strengths and weaknesses of each model are analyzed. The stochastic volatility models of Wiggins (via Orenstien-Uhlenbeck processes), Hull-White, and Heston are studied, as is the SABR model. The chapter wraps up with a study of the SIV models, describes how the stochastic volatility models can be obtained via limits of GARCH models and surveys Jump-diffusion processes and Levy processes.
   
   The second part of the book is concerned with term structure models and interest rate derivatives. The authors are quite well-know for their many contributions to this study and their treatment is authoritative.



4. I have used this book for two courses in my MSc degree in Financial Maths...well this book is hard to understand at first glance, but, once you are introduced with a good course on stochastic analysis and applied probability, this is an illuminating book...I particularly enjoyed the part on foreing equity derivatives and exotic derivatives.....Harmed with patience this is definitely the book by which you can effectively gain a sound a knowledge on modern mathematical finance theory....reading in conjunction with Bingham-Kiesel book, could help understanding the foundation of the subject.



5. I've been using this book on and off over the last year. At first I was very impressed with the level of detail in the mathematics, especially as it was the only book at the time focussing on risk-neutral methods and covering BGM. But I've become increasing disillusioned with it of late. It's difficult to explain, but although the whole book is written in traditional theorem-proof style, there are no real proofs! (I have a PhD in math and have done research for 10 years so I should know a little about proofs.) The only "proofs" provided are basically symbol shifting, but the heart of the math is strangely absent. This is especially strange given the Springer series in which it appears.

   In short, if you want a catalogue of methods this book does the job, but if you want a deeper understanding try Lars Nielsens book.

No comments about The Stock Option Income Generator: How To Make Steady Profits by Renting Your Stocks (Wiley Trading).

5 comments about Project Valuation Using Real Options: A Practitioner's Guide.

1. I purchased and used this book as part of my research on contemporary investment analysis techniques. Kodukula and Papudesu do a very good job of placing ROA in context with general valuation approaches, and explaining how it is accomplished in enough detail to equip working investment analysts to exercise the technique.
   
   Lets face it, no matter how you approach it, this is a tough and sophisticated topic to write about. While I was braced for a painful experience, I found this to be a surprisingly digestible piece of work, with good analogies used to keep the reader connected.
   
   As an added bonus, the beginning of the guide offers a useful review of other common valuation methods, their formulas, uses and shortcomings. I recommend this as a reference to anyone who must calculate valuation of complex initiatives - even if you don't think you will do ROA.



2. Some good material but I really found the writing style to be hard to follow and at times confusing. This is a bit of an obscure topic to begin with in my opinion but I think the authors could have done a better job of making the book more readable.



3. I have read a few other options books for "practitioners" and this book is the best. Very practical and usable. In fact, I read it in small pieces and still get a lot out of it. I thank the others for sparing us on the theory and not trying to sell something.



4. Dr. Kodukula and his associate have written a concise, understandable and interesting book discussing project valuation. I routinely recommend this book to my associates and students, and higly recommend it for students in the MBA tract.



5. Starting with an introduction to the real options analysis the authors take us through the traditional project valuations tools (which is a bonus) to the process used to value projects using real options analysis, on the way explaining the methods and computational techniques employed to solve real option problems and how real options analysis supplements the traditional tools.
   
   The detailed solutions provided for the various examples using ample figures and tables really help in understanding the application of real options analysis technique to project valuation.
   
   This book will be of great help to corporate executives, senior managers, portfolio, program and project managers who want to go beyond the application of traditional tools of project valuation, searching for newer techniques.

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.

2 comments about Options for the Stock Investor: How to Use Options to Enhance and Protect Returns.

1. This book was recommended by an old-timer at Schwab. Worth the price but gives a false impression of how options actually work. Prevailing prices make most spreads, "stock price recovery" schemes worthless. I'm a Newbie, so use Salt.



2. In the past I had lost money virtually every time I ventured into the option's market. Thanks to this book I now understand what I had been doing wrong. It completely opened my eyes. I now understand how the market works. More importantly, I now know how to use options to my advantage. I still don't score a hit every time, but since reading the book I have realized a substantial net profit.

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.