2 comments about In the Company of Owners: The Truth about Stock Options (And Why Every Employee Should Have Them).

1. There have been a number of slams against stock options by people who think they are at the heart of corporate scandals. This readable and thorough book points out that sharing ownership broadly has been a tremendous benefit to many companies, although a few have abused it. Those of us who have seen companies grow dramatically through the efforts of incentived employees know that options are the best system devised for sharing ownership broadly, and that current attempts to restrict them will do more harm than good for the US economy. This book carefully documents both the benefits and abuses, and should be useful for entrepreneurs who want to build companies, and for regulators who want to really curb abuses while saving the benefits -- and chance for broad based wealth creation -- that employee ownership represents.



2. This is a very carefully crafted and persuasive book. The authors do a great job of laying out the argument for why sharing ownership broadly with employees is good for companies, shareholders, and employees, while concentrating ownership in just a few executives is a bad idea.The book is especially important now with all the debate going on about stock options, which they point out are just one of the ways companies can share ownership. The book provides the most comprehensive data on this subject to date, so its arguments are not just based on preconceived notions. It deserves a wide audience, especially among corporate decision makers.

5 comments about Options For The Stock Investor: How Any Investor Can Use Options to Enhance and Protect their Return.

1. From the beginning pages, the explanations are flowing and account for all levels of competency in options. When you finish the very readable book, you will no longer need to depend on others for advice; you become your own advisor. The graphs are excellent while the mathematical concepts are carefully explained. I now have confidence in my knowledge and my decisions. Hats off to Mr. Bittman! Only downside is that the software is out dated, but it was written in 97.



2. Despite being an author, I do not buy many books, but I snatched this one up. The book clearly describes options, how they work, how to use them, and includes software I find invaluable for evaluating them. In my mind, this is the best book I've read on options and it is well worth considering.

   Thomas N. Bulkowski, author, "Encyclopedia of Chart Patterns," (Wiley, 2000) and "Trading Classic Chart Patterns" (Wiley, due in spring 2002)




3. There are things you can do with options that you can not do with any other investment tool. This book, and most of the others, do a good job of explaining the theory behind options and their math. This book is no exception, and neither is the software.



4. I picked up the book this morning and found it contained the same info you can get for free at the Chicago Board Options Exchange website. Furthermore, you can download the options calculator (Windows version), along with a slew of other training material, for free. I gave it two stars because it's in bound form, while the 300+ pages I printed off the cboe website aren't.



5. "reads great, and it's less filling" Basic option theory is presented in a clear, concise way; however, because it lacks the theory, a novice investor would probably have his lunch eaten if he entered the fray with this book as his only background. And, good lord, do not be swayed into buying the book for its accompanying software: it's @#$%^. The book was published in 1997, and the software is a @#$%^ DOS program. ???

5 comments about Using Options to Buy Stocks: Build Wealth With Little Risk and No Capital.

1. In his book, Dennis Eisen describes exactly one way to trade options: Selling Puts, namely LEAPS (Long-term Equity Anticipation Securities). What makes this book so interesting to read is that Eisen starts with a general overview and then goes into a level of useful detail which I have not seen in any other book on options yet. He explains how options are taxed, how the margin requirement is calculated, and what actually happens when options are exercised/assigned. This knowledge you normally have to acquire in years of practice but Eisen just spreads it out in front of the reader. Despite the level of detail the book is easy to follow, and I finished it in two days.
   What makes the author very likable is that he writes in the "I" form, i.e. he writes from his experience, and not with the claim to know the absolute truth.
   The book is divided in three main parts: Part one covers the basics, part two takes a quantitative look at the risk and reward of an actual system, and how you can improve your odds, and part three lists formulas and computer codes. There is also a big appendix with over a hundred tables of put premiums calculated with the Black-Scholes-Formula. The book is rounded off by a bibliography and Eisen's favorite web sites (some of them are outdated).
   The main reason why Eisen prefers long-term puts (and long-term meaning up to 30 months) is that they are less risky. Due to inflation and the fact that good companies increase their earnings over time thus driving their share price up, he feels that long-term options are less likely to be assigned. For this, he is willing to sacrifice quite some put premium as the following example shows: For an American Option (stock price = strike price, volatility 0.3, dividend rate 3%) the premium for a 15 months-put is $11.46 yet for the 30 months-put it is only $15.06. In other words, although the time is twice as long until expiration, the premium increases by only 31%. In proportion, the premium for a 6-months-put is even higher, at $7.71. This is because options lose most of their value in the last months before expiration.
   Here I would deviate from the author's system, I would always prefer to sell two consecutive 15-months-puts for $22.92 or even five consecutive 6-months-puts for $38.53 rather than one 30-months-put for $15.06. By rolling them out and down I would try to prevent being assigned too many stocks.
   Are there any downsides to this book? Not really. One thing I did not understand is how Eisen can put the premium which he earns into a cash market account at 6% interest rate. (This contributes an important part to the profitability of his system). In chapter 4 he explains how much margin is required: The whole put premium plus 10 or 20% of the underlying stock price. So how can he put the premium into a cash market account when he has to keep it as a margin? My online broker will give me less than 1% on my margin account.
   And one thing I would be looking forward to: Since this book was written in 2000, it could use an update. Then Eisen could test his strategy with a longer history and real data (he had to calculate backdated data because LEAPS had only been existing for seven years at the time this book was written), and update some of the web sites and bibliographic data.
   But altogether this is a great book, and it deserves five stars.



2. I really enjoyed reading this book. First, it's very condensed and well structured. The author gives a very good overview of stock options, then he explains his strategy (basically it's selling long term naked puts). Because in general selling naked options is considered to be risky, the author explains in details why his strategy is actually a low risk one. He includes the raw data he used, the programs and formulas and the results and their interpretation. The books is written from an individual investor point of view. What I really like about the book is that the author is not trying to avoid or downplay the areas of concerns. Actually he is doing exactly the opposite. He is trying to find and address the weakest points of his strategy and prove his points. Overall, it's a great book to learn about stock options, especially the LEAP puts strategy.



3. I trade equity options. I have read a lot of books about options. Basically, once you have read McMillan's book, none of the other option books have anything to add. Except this book.
   This book shows some original thinking; it's not just the same old thing about bull spreads, etc. The book advocates more than just selling puts to get premium or to use as a method of buying stock at a discount. He explains how you can sell puts on solid companies and buy stock of other companies with the premium you brought in. He really got me thinking, and I have gone from his ideas to developing some of my own.
   This book is well worth reading. Read it to get ideas on how to use puts for your own advantage. Learn something new.



4. I picked this up ... at a book clearance sale, if you have to pay more pick another title. First of all the author says he sells puts (contracts agreeing to buy a stock or index at a set price until a specific date for which you receive a premium) to buy stocks in his investment account. There is not a single example in the book of a trade he executed this way. Instead he fills about 1/4 of the book with hypothetical computer runs assuming you had sold every LEAP contract over a multi year period. That is just a silly example for the individual investor. That is akin to comparing all of the insurance coverage written by Prudential with you writing a policy on your grandma.

   Second he gives you numerous pages on how to calculate Volatility and Black-Scholes, etc. What is missed is that you want to be selling Puts and Calls when Volatility is High, and most option brokers do this calculation with a computer. As for Black-Sholes, the calculation is easy to find on the web, but any "advantage" that it may provide is used by insititutions who can rapidly scan the whole market and quickly correct any price imbalances. Unless you enjoy crunching financial formulas by hand, this section is filler at best.

   Finally, his stock selection and risk control methods are questionable at best. Think Enron and realize that even "independent" reviewers like Morningstar and Value Line had it well rated up until the bitter end. If you dont already have a solid stock picking methodology, you should not start buy selling options. The notion that a reader should do anything other than sell an option that is 100% covered by CASH is the same as endorsing the methods that bankrupted many very large traders, banks and hedge-funds.

   If you are looking for investment ideas Getting Started in Options may be a good place to START. Throw in Peter Lynch, Justin Mamis, and Andrew Tobias for good measure.




5. I saw this book in the book store, and spent some time there reading the first few chapters. I was so interested in his ideas, that I purchased the book. It's well-written and not at all dry, unlike some other investment books.

   The author starts off by telling us how he had been able to amass a decent-sized portfolio over the years. He had a couple of hundred thousand dollars saved away, all invested in good long-term stock investments. He wished there was a way he could generate more income on-top of his already solid investments.

   He started out by selling covered calls on some of his stock portfolio. That worked for a while, but he soon became frustrated that some of his best performing stocks were being called away, while he was left with a portfolio of poorly performing stocks. That is one of the down sides to covered call investing.

   So he tried selling put options instead. Selling a put option is when you promise to purchase a stock at a specific price. In exchange for this promise you get paid a premium up front.

   The author has found a lot of success picking solid companies, with sales and earnings growth, and selling put options one or two years out (LEAPs). Most of the LEAP puts he sells expires worthless, thus allowing him to keep the premium as profit, and sell some more long-term puts for more premium.

   Most of the book deals with his back-testing data for this theory. He tests different quality stocks, different expiry dates, and different strikes. All in an effort to find the best overall results. In the end, some of his data suggests that selling long term puts at a strike price below the current price on the highest quality stocks has a 95% plus success rate.

   If this type of theory interests you, I suggest getting this book and studying the theory and data for yourself.

5 comments about Covered Calls and Naked Puts: Create Your Own Stock Options Money Tree.

1. THE BOOK IS EASY TO READ, AND COVERS SOME FUNDAMENTALS...
   
   I BELIEVE IT'S TOO SIMPLISTIC... DOESN'T COVER THE GREAT VOLATILITY THAT EXISTS IN THE STOCK MARKET - AND OPTIONS MARKETS - TODAY.



2. The book came within 7 days and came as described. I would deal with this seller again.



3. This book was horrible. Spoke more about the Rotary club than option strategies. Don't waste your money like I did. If you have never heard of an option before ....you might learn something. This book was an advertisement for their software.
   
   chuck



4. If you are in High School and want to learn about Covered Calls, great, this is for you.
   
   Otherwise this book was way too elementary. They added a silly storyline to make the 1/2 inch thick book thicker. Something about a long lost professor who shows his old former student "come with me on a journey" type explanation of covered calls.
   
   The book barely talks about Naked Puts, which is why I bought it.
   
   It talks about a system to pick the right stocks. This is still WAY too risky. I think one should only do covered calls on an index like SPY, and skip his system for picking the right stocks (but that is my bias).
   
   Oh yeah, the entire book is an infomercial for a software they want to sell you.
   
   Also he tries to pick the direction of the market, as opposed to making money regardless of the market.
   
   The only good thing was this chart that he had that predicted a collapse in 2007 of the stock market. That was dead on.
   
   I would stick to getting your info on the web for free. Unless you want a very 101 background. No actual investor would use this book and start doing covered calls.



5. I have ordered twice of these books, but I have not received them yet for some reasons. Please check it for me about my order. Thanks

2 comments about Pricing, Hedging, and Trading Exotic Options: Understand the Intricacies of Exotic Options and How to Use Them to Maximum Advantage (Irwin Library of Investment & Finance).

1. good functional book. keeps things simple



2. This book does a very nice job of both explaining how exotic options work and one's motivation for using complex derivatives. Good graphs, appropriate use of equations, and plenty of actual market-based examples.

5 comments about Pricing and Hedging of Derivative Securities.

1. Learn continuous time finance from this book: you won't be disappointed. I have read almost all the most famous finance books and I must say that this is by far the best one of them. Although somewhat limited in scope, it is masterfully written: everything is explained clearly and carefully. All statements are rigorously proved. I would say it is suitable both for beginners, having a minimum exposure to measure-theoretic probability and willing to spend some time on it, and for advanced students. Personally, I first read the book as a beginner and found it extremely useful, but even now, that I understand and know most of the material, I find it to be an invaluable reference. The level of mathematical sophistication is quite high, so don't expect anything like Neftci, Baxter and Rennie, Mikosch or Bjork. The level is the same of Duffie, but, while Duffie presents a lot of material and most of the time he doesn't provide proofs and explanations (which, personally, I find irritating), this book is limited to few selected topics, but they are explained at length.
   Unfortunately, the perfect finance book has not yet been written (finance professionals seem to be too busy and well paid to write good books), but this one is almost perfect. If you really want to understand quantitative finance, I strongly recommend that you invest a good amount of hours in studying this book. Two good books to acompany this one might be Resnick's book on probability and Steele's book on stochastic calculus.



2. Nielsen has written a virtually self-contained treatise on the subject. Reading this book was a beautiful learning experience: The author's clarity of thought was striking; the examples made particular points transparent; and the exercises made invaluable contributions to understanding.
   The three appendices (on measure and probability, the Lebesque integral, and the heat equation), and the first three chapters make the book as self-contained as is possible.
   Synopsis: I do not know of a better book on this subject.



3. This is an excellent textbook on financial mathematics. It is quite mathematical, but self contained, clearly and carefully written. The appendices are very well written condensed reviews of basic technical facts. The book also contains discussions of a topics that I've never seen anywhere else, such as "Arbitrage and Admissibility" and "The doubling strategy". As mentioned in the preface, the book is based on a doctoral-level course, and the author clearly had the benefit of a large amount of feedback from students. Reading it, one can't help notice the presence of a very large number of extra remarks and hints, inserted on every page in order to clarify what must have been a denser original text. Finally, I have to mention the excellent editorial work done by Oxford University Press in producing this book, as compared to similar books published by Wiley.



4. This book is excellent. As anyone interested in this field knows, there is a lot of high-level math. The author has included several appendices which cover the required background, and he only includes proofs that are helpful to overall understanding. All theorems without proofs have references to the standard math texts.

   In comparison to other texts, it does not leave many important ideas to intuition like Neftci's book. Baxter & Rennie is better than Neftci, but not as good as Elliot & Kopp or Lamberton & Laperyre. All of the above I have studied to some extent, and Nielsen's book seemed to include all that these did AND to fill in the gaps. This is the first book I have seen to actually define 'numeraire'.

   Make no mistake, to truly understand this material one has to make an investment in learning a good amount of math. The texts I recommend for real analysis are Royden (tops among all for ease and clarity) and Folland (more comprehensive, but very well written); for probability I recommend Resnick's new book which includes a good chapter on discrete-time martingales (much more readable than Chung) and the legendary text by Billingsley.

   If you are willing to learn about 4 chapters of Royden and keep Resnick at your side, then this is the only book you need. If not, then start with Baxter and Rennie.




5. I read it with Rudin's"Principle of Mathematical Analysis" & Royden's "Real Analysis" by self-study.In my view,you can replace Lamberton & Lapeyre with it.It is rigorous yet accessible for non-math major who is interested in derivatives pricing but frustrated with the high-level mathematics.Buy it and read it with your patience.It won't make you disappointed.

5 comments about The Complete Guide to Real Estate Options: What Smart Investors Need to Know - Explained Simply.

1. After reading this book, I gave it a low rating for two reasons. The first is that the title is misleading. I expected a book titled "The Complete Guide to Real Estate Options" to have at least 70% of its total content focused on matters of the title "Real Estate Options". I was very disappointed to discover this book full of decent advice and instruction for the person thinking of investing having never purchased an investment property. In fact, only pages 13-17, 27-30 and 175-183 are specific to lease options. The rest of the book covers general financial common sense advice that may be good for the inexperienced investor but not for an experienced investor looking for advanced investment strategies like options. The second reason for only 2 stars was that the book suggested hiring tenants to perform property upkeep / maintenance functions. I have tried this and know from experience that tenants should be discouraged from performing any work or maintenance on your usually expensive investment. This is potentially costly bad advice. But to this author' credit, pages 265 and 266 are resource pages that list several other books that are specific to Real Estate Options. How to Make Money With Real Estate Options: Low-Cost, Low-Risk, High-Profit Strategies for Controlling Undervalued Property....Without the Burdens of Ownership!



2. For those who have the drive to make money in the complex world of real estate investing, Steven D. Fisher's "The Complete Guide to Real Estate Options, What Smart Investors Need to Know --Explained Simply," is a useful guide for the journey. Throughout the book's 288 pages, Fisher walks interested investors through the process, explaining it in rich detail, accented by bullet points and screened text boxes.
   
   If you're unfamiliar with the options process, in a nutshell, it provides a means to produce an income steam without the high amounts of money that property buying and selling require. Options can be undertaken as a part-time or full-time endeavor and by both beginning and long-time investors.
   
   One of the best parts of this book is its clear writing, outlining everything in a step-by-step process. It's as if a friend who has knowledge in this field was sitting next to you, explaining the subject, but without going off on tangents.
   
   Fisher is clear that this investment route is not for everyone. It takes a highly motivated self-starter, akin to a salesperson or entrepreneur, to succeed. Fisher also is a major believer of research, such as completely examining a property's history. As he puts it: "Lease options are a great way to build income and future wealth as long as a person is knowledgeable and performs due diligence."
   
   The book also provides handy tools, such as sample letters, to permit investors to get under way. One section, which deals with how to find and keep good renters, and what to do about problems renters, is particularly useful for any landlord. Fisher also has helpful information on organization and office procedures, such as obtaining the right property management software.
   
   The sole shortfall with this otherwise highly informative book is the lack of data provided in dealing with any unfortunate losses. Fisher is great at speculating what one's potential profits are, and how to realize them, but as any savvy investor knows, losses are as much a part of the game -- especially in today's volatile real estate market -- as profits are.
   
   One simply cannot assume property values will increase, or be problem-free. Had Fisher spent a bit more effort in this area, other that a brief mention of it, his book would have been much improved. Aside from that oversight, however, "Real Estate Options" packs a powerful informational punch to set investors on the road to success.



3. The Complete Guide to Real Estate Options (what smart investors need to know - explained simply) by Steven D. Fisher is a truly holistic and complete look at real estate lease option in a detailed, well-ordered format. Mr. Fisher does an excellent, forthright job of explaining the lease market in terms that even a novice can grasp.
   
   The best part about the book is that it emphasizes everything the reader needs to be aware of, especially knowing themselves. The importance of attitude, perseverance, research and even ethical considerations get tackled in a no-nonsense manner, including pointing out personality traits that make for less-than-successful adventure into leasing. Additionally Mr. Fisher doesn't leave the reader hanging after they've entered the lease market. He goes on to provide concrete advice for everything from property improvements to finding good tenants. My rating 4 Stars.



4. The contemporary real estate market has left a wake of uncertainty in the minds of many investors. Though risk is inherent in any investment decision, the real estate market reflects real-world conditions as well as individual perception of market conditions.
   
   The Complete Guide to Real Estate Options: What Smart Investors Need to Know - Explained Simply is a non-nonsense guide to a specific type of real estate transaction: the real estate lease option. As explained by Steven Fisher, the book's author, the lease option is a lower-risk approach. As contrasted against the real estate purchase option, the lease option requires less money and limits exposure to the risks associated with property ownership.
   
   The Complete Guide offers strategies for researching, marketing and developing the necessary attributes to become a successful entrepreneurial investor. It also gives templates for sample letters and exercises that help build the skills required to build your own real estate business. The Complete Guide is a must for anyone interested in being successful in today's real estate market. It is a practical read as well as a handy reference for lease option investing. An added benefit: the publisher is donating a portion of their profits to the Humane Society, on behalf of the passing of their beloved office canine, Bear.



5. If you've been tempted to invest in real estate but the jargon, the paperwork and the cost seem a little scary, pick up a copy of Steven D. Fisher's handy book. This well-written volume offers a clear and concise picture of some of the basic tools you'll need to gain a foothold in the field. Whether your goal is to purchase just one investment property or create a massive portfolio, Fisher offers an understandable, common-sense approach to buying real estate.
   
   He begins by explaining both the advantages and disadvantages of real estate lease options, a method that allows potential buyers to invest only a fraction of their funds in a property. The examples provided by the author allow beginners to visualize how the process works. One of his most valuable chapters offers readers the opportunity to create their own "action plan," which outlines all the goals they seek to accomplish. Planning is key, Fisher advises, along with a positive attitude and the willingness to learn more about changes in the real estate market. Don't overlook basics like knowing your financial limitations and credit rating before you attempt to invest.
   
   But, Fisher does more than walk the reader to the front door of that new property. Once your purchase is complete, he takes you inside by explaining how to work with repairmen, how to find good tenants, and also provides an inside look at relevant matters such as taxes and maintaining your property. So, whether you're a newcomer to the field or someone who wants to brush up on investment techniques, let this clearly-written practical handbook be your guide.

2 comments about Understanding Options.

1. This book assumes that you have familiarity with the stock market but didn't trade options, so it carefully describes what option is and why it can be useful. It progresses from the simplest to the most complex strategies. The book is mostly theoretic, it doesn't have real-life examples. If you need them, get "McMillan on Options" by Lawrence G. McMillan. An important technique of selling puts as a way of buying the underlying security is also not covered in this book. Warren Buffett obtains most of his stock holdings through selling puts. He got most of his Coca-Cola Holdings this way, and, recently, Burlington Northern Santa Fe. If you are interested in this technique, read chapter 19 of "Options as a Strategic Investment" by Lawrence G. McMillan.
   
   A good characteristic of "Understanding options" is that each chapter ends with a set of review questions and answers that will assist you in absorbing and implementing the material covered. It can also be useful if you are teaching options and would like to prepare a questionnaire for your students. Another book that may also be useful for that purpose is "Profit with Options" by Lawrence G. McMillan, it also have questions and answers for each chapter.
   
   If you are new to the stock market, you may instead get "Options Made Easy" by Guy Cohen or "The Options Course" by George A. Fontanills.



2. A very helpful book for understanding options. I would say a must have for any person dealing with options.

5 comments about Options: Trading Strategy and Risk Management (Wiley Finance).

1. It's always refreshing to find a book written by a trader! Most of us in the industry have too many books authored by academics who have never managed risk for a living. This book would be very helpful for beginners looking to get into trading. It's a nice complement to find a text that can go beyond theoretical pricing mechanics and give you a feel for the market. Nice bite size chapters, good ideas, practical examples.



2. I have worked at futures market for quite a long time, but until recently options remained a very obscure and complex instrument for me. Some time ago I decided to master option market. So I bought several books on the subject, but none of them was as helpful as the one by Simon Vine. The book is clearly written by a practical expert who knows market realities.



3. Sorry Simon.
   
   Been meaning to find the time to write a re-review... with a slight improvement in the rating! haha
   
   I didn't finish the book at the time I wrote the last review.
   
   To date, I have, in fact, finished your book. And overall, the book was actually quite helpful. I must've had an off-day the day I reviewed it the first time.
   
   Anyway, I figured you're just a (good?) trader after all, not a writer. A lot of options texts in the market nowadays are just a lot of marketing blather. So I'll forgive your minor short-comings.
   
   To recap: overall, your book had a lot of good ideas. Your options examples were practical and relevant to the beginner institutional trader/risk manager. For me, the real meat of your book came from Parts 3 to 7.
   
   I liked that your book is not US-centric, futures-centric, equities-centric, or even day-trader-centric.
   
   And I liked the fact that all of your chapters were bite-sizes and a whole lot easier to digest.
   
   Methinks this is the only book of its kind that I know of that caters to institutional traders/salespersons (regardless how Amazon is marketing the book), and (to a certain extent) beginner risk managers.
   
   I won't recommend this book to a rank outsider or even Investors. I can, however, recommend this to novice traders/salespersons who would've have cut their teeth for at least 6 months before they can go into general resource books like these (and being able to recognize the difference between the mistakes I mentioned in my last review and gaps in their own knowledge! haha)
   
   For your next edition, you might want to cover the latest exotic FX structures in more depth. And maybe you could convert your notes at the end of the book as end-of-chapter footnotes instead.
   
   For your next book, if you can write something like the RiskDoctor Charles Cottle's latest book, but with plenty of FX options management examples (from directional trader's and/or market maker's POV) plus a CD-ROM with Excel spreadsheets and calculators, that would be great! haha
   
   Erm... No need for a refund. Your book and Cottle's are the only desk references I use on a regular basis.
   
   My other issues with this book:
   
   The book is being marketed (either by the inside flaps or Editorial Reviews) as a "step-by-step" "practical guide" for "investors". Methinks while the book does have practical examples, it's not really a "practical" book over-all for the investor class. Institutional traders, maybe, but not investors.
   
   And the book would really have to go that extra mile before it can claim the 'step-by-step" bit for investors. Can't say off-hand what that extra mile would entail; just that I don't see it yet.
   
   However, I CAN say the book turned out to be a valuable resource.
   
   My two cents anyway. "Step-by-step" is a very important standard for me. Hence, 4 stars, instead of 5 stars.



4. Exercises is the highlight of the book. It made many points much clearer.
   Actually I did not find mistakes the previous review mentions.
   I'd like to see more books from this author.



5. This is an excellent book on the strategy. Specifically recommended to the young audience who just joined the market

No comments about Quantum Finance: Path Integrals and Hamiltonians for Options and Interest Rates.