5 comments about The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets.

1. Those hoping to find the way to everlasting riches should read this book and continue their journey. This book is a key first step to understanding and trading the options market in a different way. It is NOT a how to book. When you have finished this book and understand the basics, read his others. Then, if you are serious about learning how to use his ideas in a practical way (the 'HOW TO'), enroll in his course(s) in NYC. I did and got the chance to ask Augen how one should use his ideas for making trades (Augen is brilliant and a great teacher). I was rewarded; I continue to enjoy options trading and the intellectual stimulation that is part of Augen's methods. I have already read this book four times and find something new every time. If you are looking for a way to enjoy options trading, want to lower your risk, avoid sitting in front of a screen all day and are willing to put in the time to understand some elementary options math, get this book. The rest of the journey is yours for the asking.



2. Buying this book was an easy choice for me with the markets being as volatile as they have been. Before I was through the introduction I knew it was a great buy at twice the price.
   
   The author, Jeff Augen, takes what could have been a very difficult topic and presents it so that even the uninitiated will have an intuitive grasp for options pricing and volatility issues.
   
   I strongly recommend this text to anybody interested in options and the impact volatility has on strategies. Volatility will no longer be just some "Kentucky Windage" for Black-Scholes.



3. For those who understand math this is a good book. For the rest of us, there are a few helpful pieces of information but it's a hard read unless you REALLY enjoy math and want to understand your edge with options by doing the math.



4. Not for beginners or intermediate option players. Hard to understand, but there are true gems in this book. It formed my view about options tremendously.



5. Jeff Augen has provided an elegant, effective, analytical presentation of Option trading strategies without eschewing mathematical rigor. Because of its focus on practical trading, this book is readable by most equity and index option traders except those who are allergic to the mere mention of mathematical equations.
   
   The author has provided `statistical insight into the dynamics of price change behavior and volatility', which is useful information for the serious trader. This is true of every chapter except the last one, where the author has indulged himself in a presentation of `Building the Toolset' (an overview of the author's creation of thousands of lines of computer code).
   
   I agree with the author's lament that `the financial world has chosen to substitute careful scientific analysis with something far less precise - the opinions of financial analysts, who tend to be short on accurate predictions but long on after-the-fact analysis. Such an over reliance on `expert opinions' is not all that bad, since it served as the motivation for the author's excellent work.
   
   If you are new to option trading, you would not find the brief 4-page discussion of `Background and Terms' adequate. You might want to read a book such as Guy Cohen's `Options Made easy' before continuing on with Augen's book.
   
   In chapter 1, the author proposes the use of standard deviations to represent price changes in place of usual closing price chart and in the next several chapters makes a clear presentation of why such (standard deviation) charts are superior from a trader's point of view. Although I enjoyed the rigorous presentation of equations for the Black Scholes pricing model, this discussion may not be every reader's `cup of tea'. Such a reader may find Dan Passarelli's book `Trading Option Greeks' more amenable.
   
   Chapter 3 on `Volatility' notes how in falling markets volatility tends to rise and in rising markets volatility tends to fall. However, volatility alone is a poor indicator of price change behavior. Therefore, it is important to have a balanced view of historical volatility and price change behavior in terms of size and frequency of spikes (large standard deviations).
   
   Chapter 4 `General Considerations' includes valuable information such as this: ` an interesting strategy involves structuring a long position that benefits from increasing volatility and closing the trade just before earnings are released.' This chapter also illustrates with a clear example how `much information can be gleaned from a level II quote'. After reading this chapter, traders should no longer be surprised if call prices drop despite a rise in the underlying stock, since they would learn to attribute such effect to falling volatility that accompanies an increasingly stable rising stock.
   
   In Chapter 5 `Managing Basic Option Positions' the author makes another excellent point: `Treating option positions as static entities that have a range of values at expiration has been the downfall of many books on the subject'. Despite this view, I wish the author chose to include Profit & Loss profile diagrams (such as the ones in Passarelli's book), for at least the basic option positions, indicating the profile at trade date, an intermediate date and at expiry. I hold this view despite my total agreement with the author's statement that `opening a position and leaving it until expiration is rarely the best strategy.' The author's admonition to `focus on trading the option and not the underlying' does not necessarily apply to (my favorite strategy) deep in the money calls, which behave like synthetic stocks at a fraction of the cost. Of course, the author is well aware of this, since he observes that long call positions perform better than short put positions as a (synthetic) replacement for stock.
   
   The author goes on to discuss `Managing Complex Option Positions', and how to trade the earnings cycle and expiration cycle. I believe that a trader should trade only at the level of complexity that he can fully understand and profit from. If he wishes to indulge in more complex positions he should thoroughly soak in the knowledge exhibited in Augen's book before venturing beyond his normal reach.
   
   Ultimately, a trader wins if he is right (whether he bets on higher/lower prices or higher/lower volatility) and loses if he is wrong. The only thing he can do is improve the odds of being right and hold the losses to manageable levels when he is wrong.
   Options Made Easy: Your Guide to Profitable Trading (2nd Edition)Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit

5 comments about The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies.

1. At first glance, this book appears as though it would be useful until one actually tries to make use of the information it provides. This book is not good as a reference due the errors which are such as to make the explanations incorrect in some parts. One statement which I especially disliked which appears throughout the book as a means to exit is "Manage your position according to the rules defined in your Trading Plan." This book is also not good for learning either. As early in the text as the first twenty pages, the author uses terms which he does not explain. I would recommend that you buy other books.



2. A good read overall if you understand options already and are looking for supplemental strategies. I read all the strategy books I can find, and I subscribe to OptionsMonster and [...] and I've been doing very, very well trading options.



3. This book explains the theory and logic behind the more than sixty option strategies available to the option trader, from the simple to the highly complex. The author touches on the advantages of each strategy,risk profile, greeks, time decay and entry and exit.Often an example is given for each of the strategies discussed.
   Although it is alway good to be familiar with as many of the option techniqus as possible, most individual traders only focus on few simple option instruments in practice.To execute such trades successfully, it is critical to be at least qualitatively familiar with option behavior.This includes factors such as short interest on the stock, how close the stock price is to the strike, volatility of the stock and implies volatility of the option,open interest ratio.
   These factors are key in deciding what trade to take. As an example consider a stock with the call to put ratio of 3:1 with few days left to expiration, what option is more likey to expire worthless?. Or A highly volatile stock pinned at strike near earnings, what strategy will you use to trade options in this case? etc. The answers to such questions are critical in deciding how to trade. Some traders use options to mitigate losses on their stock trades or increase profits. In such cases where stock /option trade combinations are executed, technical analysis in addition to option behavior becomes critical. These are areas that this book does not touch on, probably because they were not within its intended scope . I would suggest for advanced option traders reading The Volatility Edge in Options Trading or Trading Options at Expiration. Beginning and intermediate traders that are more interested in simple option strategies combined with trading stocks, I would suggest Generate Thousands in Cash on your Stocks Before Buying or Selling Them: Third Edition.
   Using these books in combination with " the bible of option strategies" allowed me to translate theoretical knowledge to money making trades, which I assume is the goal of most traders.



4. It is hard to find a book that shows you the different ways to trade options in combination as well as the risks, rewards, and special considerations of each one. It is not a long tutorial but rather a set of logical groupings of related types of trades to choose between for a specific situation. It is more like a recipe book so you can quickly look up the the types of options that are good choices for a situation. It also defines each type of option strategy in a similar layout in just a few pages each. Very helpful!



5. I am a pretty experienced stock trader but I must admit trading options is much more challenging. The good news is once you start understanding options you won't want to trade stocks again. This a very well structured book, a bit repetitive here and there but overall I liked it. Despite the title I won't consider this book the "Bible" of options, if you really want a "Bible" I would recommend "Options as a Strategic Investment" by McMillan. However, this the best book to start learning options. It gives you the basics, it explains all the strategies out there and in which conditions you should use them.

1 comments about Fundamentals of Futures and Options Markets (Solutions Manual and Study Guide).

1. The problems at the end of each chapter in the textbook consist of three sections: quiz, questions & problems, and assignment questions. The solutions to the quiz section are in the back of the textbook. The solutions manual only covers the questions & problems section. As for the assignment questions, you'll have to go to your professor's office hours for help with those. The manual has a brief review for each chapter and then states each question followed by a completely worked out answer. This will save you alot of time. The textbook itself isn't bad either. I plan on keeping both the text and the solutions manual in case I go to grad school.

5 comments about The Complete Guide to Option Selling, Second Edition.

1. This second edition book is a very easy to follow guide to writing options.
   It is logically organized and the authors used very current situations and information to get their messages across.
   
   Probably the best sub-$50 I have ever spent.
   Made my money back 20 fold in the first month.



2. This is an excellent book on selling options on futures contracts. It explains the differences in Stock Options and Futures Options. Most investors never hear anything positive about selling options, this book uncovers the secrets--- the brokers want you to buy, because they are selling them.
   With no thought at all on what option to pick or at what price you have an 80% chance of being correct. With very little analysis and planing you can make a good income by selling options.
   The difference with this type of investment is that it is an investment, not trading. It is slow and boring, but it does have good rewards. I recommend this book for anyone who thinks they want to control their own investments.



3. This book is a general description of option selling.
   I would not suggest to spend any money with it.
   You can learn the same things decribed in this book, if you surf the internet.
   The only book that I found very useful to start this businness is "Trading Options to Win" of S.A. Johnston,
   wich focus on all the aspect of option selling with pratical and real life example.



4. James Cordier & Michael Gross have put together one of the most complete explanations on options selling on futures ever written that even the layman can understand. Once you read this book you may well switch your portfolio from buying options on equities to the selling of commodity options....I know I did.
   
   These are knowledgeable & most importantly honest brokers who have my enormous respect. Their firm Liberty Trading Group offers managed accounts to individuals & I can verify that they can bring you consistant returns rarely found in any other investment vehicle.
   
   Read the book, it may be one of the smartest moves you can make this year!



5. Book focuses on options on futures which is good as most texts focus on stock options. So if you're looking for something about stock options, this isn't for you although the techniques, in theory, can be applied to any underlying.
   My main criticism with the book has to do with the fact that its central premise, selling of options, is not discussed in sufficient detail, or at least won't explain the clear gap between the book's thesis and reality.
   The idea to sell far out of the money options with long durations is a good idea in principle. However, finding a market which has sufficient premium at 75-100% OTM in ANY month, no matter how far out you go, is nearly impossible, inspite of the author's claims.
   I have tried to raise a number of issues/questions I have had about the book and it's recommended techniques with the authors directly, wondering if I was missing something. They have not honored me with an answer.
   The authors try to avoid advertising their brokerage business but I couldn't help but think that in addition to lacking real substance, this book was more of a vehicle to get people interested in becoming their clients. Given that they claim to run a business managing 100s of accounts using the book's advertised method, I cannot help but wonder what they're NOT telling the reader. Their unwillingness to answer more specific questions probably means they want you to become their client first.
   In short, don't buy this book if you really want to learn a practical approach to options trading. Instead, I would recommend David Caplan's classic The New Options Advantage.

5 comments about Trading Options For Dummies.

1. Having already been educated in trading options, I found this book to be a good "review" and a great book to share with others interested in knowing what Options are all about. Like most Dummy books, it is easy to read and reference - and filled with excellent charts and real world trade examples. I would recommend it to beginners wholeheartedly.



2. Options is an area that is very complex, and, if anything, the author dumbed it down too much. There are a lot of ways to make mistakes with options.
   
   This book does a good job of covering the basics and beyond. If you are having trouble understanding parts of it, don't blame the book. The subject matter is difficult for those new to it. Take your time with this material. Unlike other areas of study, being wrong in options can cost you money. While the author lists some pros and cons with paper trading, I found it to be useful for my own learning. Look for a brokerage that offers this. This will also help you get used to the mechanics of opening and closing positions without risking actual money.
   
   Also, you do not have to master the numerous strategies discussed in the book to make use of options. You can buy single calls and puts and gain leverage while keeping thigs simple.
   
   The author has written more advanced books when you are ready to dig into the statistics more deeply.



3. I picked up this book to learn about options as a supplement to my stock investing. The first three times I tried to read the book I thought I was just too tired to "get it." Yesterday I became absolutely certain that this book is so poorly organized and edited that YOU WILL NEVER UNDERSTAND options and their strategies from reading the text. Moreover, the glossary in the back of the book is incomplete.
   
   Don't even think about buying this text. It is worthless. I just threw my copy away this morning to insure that no one else would have it inflicted on them.



4. I've read many books written for the Dummies series and this one is by far the worst. Fontanills seems to have a very strong personal understanding of options and what it takes to trade them successfully but NO idea of how to teach the basics successfully to others through the written word. I've spent entirely too much time going back to reread pages as he glosses over important information, information that is then required to continue to understand the following concepts. After barely highlighting key terms he often then only refers to them by their acronyms, again requiring you to page backward to find the info. Charts are frequently impossible to read and very few walk-through examples are given. He never stops to gather and go over the important information in a chapter or section and often leaves you clueless as to how things apply to the average day trader sitting at home in front of his computer. I like to think that I have more than a basic knowledge of the stock market and how it works but, with that said, way too much prior knowledge is assumed on his part for this too be an introductory book into anything.
   
   These books are not cheap and, as far as I'm concerned, Fontanills owes me some money back!



5. Options for idiots is one of the poorest written books of this series. Its set-up is confusing; there are no sections that delineate options strategies. Half the book is spent reviewing options basics, which is far too long. I think most people buy this book to learn basic option strategies, when to use what strategy, the advantage and disadvantage of each. This type of information is either buried in the book or just not present. This is a "dummies" book I would pass on, you should be able to find far better basic reviews.

5 comments about Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor (Agora Series).

1. First of all I would like to point out, that I would not recommend options trading to anyone except a highly sophisticated investor who has a lot of time on his/her hands for research. Options trading can be extremely volatile and risky and one can quickly loose one's entire investment.
   
   With that out of the way, I would say this is one of the easier books to read if one wants to gain some knowledge of options. It will provide you with a few basic options strategies. Selling covered calls, and DITM (Deep in the money) calls are probably the two best ones. Please do not however jump into options trading without first paper trading and back testing.
   
   In my opinion the best course is to stay away from options altogether.



2. Lee Lowell knows options, but his book does not convey the information whereby one could "Get Rich with Options". He describes four winning strategies, but provides the least information on the one strategy, spreads, that comprises 90% of his trades. Although I found some useful information on spreads, it was scattered throughout the book mixed with repetitive and wordy text on the more basic strategies of puts, calls and covered calls.
   
   Lowell appears to have written this book for beginners, but all his example trades are with commodities which most beginners do not trade. He also leads the reader to believe that its OK to make trades where you could loose far more money than you could make as long as the profit probability - calculated from a normal distribution of prices - is above 50%. He does not explain that price movements of stocks and commodities do not follow a normal distribution particularly in the volatile markets that we have today. In other words, Lowell's book makes option-trading appear to be more predictable than it really is.



3. This book is a serious must read for people who want to create wealth, to gain financial independence. Everyone who serious about making money read this. Strategies are clearly detailed and easy to follow.



4. Very easy to read and understand. The author stays focused on a few high percentage winning strategies. The reviews that are critical of the books superficial descriptions have some validity. I would think the book is aimed at beginner to intermediate level investors/traders.
   
   Lots of examples and although he could have gone into more depth about losing trades, reasons for high winning percentage but low profit:loss ratio, and more depth about the Greeks, I found the book to be informative and worthwhile.



5. I had traded equities for years. Making money when everyone else did and losing some too. I wanted to get into options so that I could leverage my money. I had already been buying and selling a few options before I read this book. I found great advice in inside that I put to use almost immediately. Deep in the money, that's what I took away from this book. Also before I read this book I would never have sold a naked put. Now I think its a great idea that has its place. I even tried to sell some naked puts but my brokerage would not allow it. They would have made me money. Read the book. Think about what Lowell writes. It might wake you up to some new ideas.

5 comments about Getting Started in Options (Getting Started In.....).

1. Thomsett's wordy and repetitive explanations of buying Puts and Calls and selling Covered Calls fills about 180 pages of his 210 - page text. He relegates the more interesting discussion of combined techniques to the last 20 pages. Here he gives you enough information to perk your interest, but not enough to motivate you to try these techniques. For example none of the figures in Chapter 9 suggest that you can loose money trading spreads, straddles and strangles



2. I loved this book. I gave it to my mother when she was interested in options after she saw my success. My success has come from a year and a half of study of the markets, small time investments, and a dead on focus of the securities market, though I am beginning to expand out there into futures contracts, which I've gotten the Getting Started in Futures book, which I think is average compared to others, but that's a different review.
   
   Getting Started with Options is your basic guide to what you need to know about options before you start using them. For the every day investor, they're a great tool for speculation when your capital is tied up, or it's a, "if this happens" moment, and you don't want to risk a lot of capital for what will surely be a gap up or gap down scenario. This was one of the first books I got on options, and though I wouldn't accredit it with my first twenty thousand dollar trade that cost me a total of two thousand dollars, or my ten thousand dollar trade that cost me a little more than a hundred and fifty dollars, counting commission, Brian Burns book, and Lawerence McMillians book are to thank for that, I accredit this book with giving me all the preliminary knowledge in easy to understand writing that didn't complicate, or make Options look scary.
   
   I would feel wrong if I didn't say that I consider stock options less risky than stocks as a "Trading" tool (as an investment, the risk is about equal). Unlike stocks where you need a massive amount of capital, 2,000 dollars to buy a hundred shares of a twenty dollar stock. 5,000 for a fifty dollar stock, in which case, you might tell yourself that if it goes down three points (300 dollars) you'll sell, but one day, wake up in the morning to discover that some news has driven the stock way down in the pre-market, and be out a thousand (any long term investors or intermediate trader has been there once or twice I'm sure) with options, you know your loss right off the bat, and need limited capital. That to me has always been the one thing I hated about stocks (I learned to manage the risk, but I now much prefer options), so little control over how much I'm willing to lose, since I don't want to lose the entire investment in a stock. 90% of the time, that doesn't happen, if a stock goes down, you get stopped out, or you can choose to sell, but it's that other ten percent that can leave a pit in your stomach, wondering how you missed it. Options to me, if you're trading the contracts and treating them like a trade, with position sizing, money management, and a systematic strategy, options become one of the safest things to trade, and get a bad name because your investment can become worthless (which to me is ridiculous since you can trade with so little money). But the risk/reward ratio is much better. An example, than back to the review. You buy a .25 cent ($25) July option that XYZ is going to 30 dollars. It's at 27, the next day, the stock goes up to 29 dollars, the contract is now worth .40 ($40), then the next day it goes up to 30.10 cents, the contract is worth .80 cents ($80) that's a 220 percent gain on investment. Had you bought a hundred shares at 27.00 you would spend $2,700, the stock moves up 3.10, you now have 3,010, it's about a 12% gain. Let's say you were willing to lose eight percent before selling your stock. Thus the stock goes down to 24.50. A 250 dollar loss before you sell. If you invested that 250 into the options at .25, you would get 10 contracts, you would make 800 dollars, or... it becomes worthless, and you lost exactly what you would have lost, had you invested in the stock and the stock went against you. That was a real trade I made, in NETL, that's still on going, I bought a hundred contracts, sold fifty, which made me a profit, and makes the rest of the trade, whether successful or not, free. I have a realized profit of fifteen hundred dollars in two days, with another 2,000 in contract value (the stock dropped to twenty nine and the contract became .40).
   
   Getting Started in Options is a great book that will get you started in options. Another Getting Started book I would suggest would be Getting Started in Chart Patterns by Thomas N. Bulkowski, also I would suggest Trader Vic's two books, Stan Weinstein book, William O'Neil's books, Martin Zweig, and Nicolas Darvas, since they all focus on break outs, which, in the options world, is a cash cow if you know how to play it right. If you know what you're doing, you're willing to speculate on market conditions, Trend Following by Michael Covel can help with that, and you're willing to speculate with the fundementals and technical moves of a stock (William O'Neil will help with that), and understand how the world effects things (Trader Vic, and Martin Zweig will help you there), then you can not only trade options as an added investment, but as a job with great returns.
   
   For my top eight Call Option picks, they're stocks I used to be long before deciding to trade options almost exclusively, look in the comment section if interested. Of course, I give warning, it's only my opinion.



3. I am an engineer by day, an aspiring options trader by night. Having read this book for the past week and finished it today, I have mixed feelings about it.
   
   On one hand, I believe the author covered everything. He discusses the foundation of options, the terminology, a lot about the possible strategies, tax treatment, and even spends time on the fundamental and technical analysis of underlying equities. The diagrams are very helpful. I am very pleased with how thorough the book is.
   
   On the other hand, I couldn't help but feel that the author feels that the more pages the book has, the better. All the content could be squeezed into two thirds of the pages without losing any value. In the first chapter the author states that as a call buyer, you acquire the right to buy 100 shares of stock at a fixed price per share. Hundreds of pages later, the author continues repeating this fact as if this is new information. The examples reiterate at least two dozen times that the premium is measured in hundreds of dollars.
   
   I know that it is not easy to make options accessible to newbies, but sometimes the author goes overboard with repetitiveness. If an editor could go through and tighten the next edition, I believe this book would be an invaluable tutorial and later a reference to a wide audience.



4. GETTING STARTED IN OPTIONS Getting Started in Options (Getting Started In.....) as an introductory guide to the potentially risky and complicated world of options trading; this book written by MICHAEL C THOMSETT makes learning the language and possibilities SIMPLY UNDERSTOOD!!! purchased this book after previous reading as permanent reference in my library of financial tools along with GETTING STARTED IN FUNDAMENTAL ANALYSIS Getting Started in Fundamental Analysis also titled by MICHAEL C THOMSETT as another well written financial reference source!!!



5. The good part is that he covers all the basic and advanced option trades. He gives useful and good ideas about trading, and many warnings. However, the writing is choppy because he constantly inserts examples, sidebars and graphs which are not integrated into the flow of the text and are annoying. I don't get why he calls the exercise or strike price a 'striking price,' or why he insists on trades as whole-dollar amounts ($1.00, $2,00, etc.) when everyone trades in dollars and cents ($1.26, $3.71, etc.). The book is certainly worth the time and money to study, and as a reference.

5 comments about Investing in Real Estate With Lease Options and "Subject-To" Deals : Powerful Strategies for Getting More When You Sell, and Paying Less When You Buy.

1. Watch Video Here: http://www.amazon.com/review/R3W1PAZHRXHWJX I'm a big fan of this book from Wendy on Lease Options! It got me started on my Real Estate Investing Career. I consider Wendy a great friend and one who operates in this business with integrity and honor - which few actually do. This book is in the top 3 books I have ever read on real estate investing. Wendy is the authority on Lease Options! Get the book! - Joe McCall [...]



2. This is a very good comprehensive book for beginners or seasoned real estate investors who focus on lease options as part of their strategy. I highly recommend this book. Wendy Patton's seminars and boot camps are great!
   
   Jack - arizonahousehelp.com



3. Wendy's book is packed full of important information about lease options. I read it and then went back to specific parts as I implemented my first lease option.
   
   I attended a 1-day workshop of hers and this book really supports and even surpasses what she was able to teach in a day. Any of her materials are worth purchasing!



4. Considering that virtually all mortgages have due on sale clauses, and it is a deception of the lender if the property is sold without notifying the lender, how is this not fraud...simply because the lender might not know for long enough that the property gets resold again and the mortgage is paid off? Does that mean that robbery is OK as long as one gets away with it? There is only one reason to leave the original borrower on the note...and that is because it is one more way to make it unlikely for the lender to realize that the due on sale clause have been violated, because no filed document will find its way back to the lender. Aside for the fact that the original borrower is still legally responsible for a mortgage on a property that they no longer own, their total debt to income is also higher than it should be. And, if the were to disclose what they had done to a new lender for a different property, that lender wouldn't approve them for a loan...they might report them for fraud. You simply can't decide for yourself that you are assigning a mortgage. This goes beyond fraud, in my opinion: Because the original borrower and the buyer are joining together to defraud the original lender, it could be considered conspiracy. For all I know this practice may be a violation of the RICO statute. That will get you a place in a federal facility for a long time! If anyone can prove that I am wrong, please feel free to write me at mail AT questfundingservices DOT us.



5. Great Book. Wendy is the Queen of lease options, having done hundreds of them in her career. If lease options is something you want to learn, this is a great book to Read.

5 comments about Sell and Sell Short (Wiley Trading).

1. A lot of this book retraces Trading for a Living and Come Into My Trading Room but this in no way detracts from it in its own right....examples from the earlier books reinforce Dr Elder's methods and how he applies them when going short as opposed to going long. It is easy to read, thought provoking and has material that is applicable to both day traders and position traders. I haven't and won't adopt every idea in this book as many do not suit my method of trading but there were a few gems that I've added to my arsenal. One good idea can make you a fortune in the markets and there's far more than one good idea in this excellent work.



2. In my way of thinking, Dr Elder has really written a book on how to manage your trade. I have asked people, how do you manage your trade after entry? The answer usually is, it depends. I think Dr. Elder's book gives concrete actionable answers to that question.



3. Greatbook and leads on from some of the other works. Written in a simple and understandble way and an essential one that you will return to from time to time



4. I work with several colleagues of mine in late 30's and early 40's studying their MBA. They spend quiet a bit of money, time and family time ( cases where kid's tv addiction linked to parents doing their MBA). Few of them managed to get promotion,some had their titles changed, some moved to different companies doing similar jobs etc. I asked some of them what was their objective of studying MBA at this age. Most have a vague objective,but as Dr.Elder quotes "A caged animal trying to grab it's tail"!. All of them have invariably tried their hand in stock market, got burnt and move back to the comfort of 'cubicle jungles'.
   
   Had they spend the $20,000 or $30,000 they spend on MBA with proper training on trading, losses, trial and error in stock market, software many would have come far ahead in trading and 'self reliance' and 'early retirement' . Instead they fear the corporate layoffs and meaningless promotions that involve travel and less family time and divorce and rebellious kids. I have started the trading career like most others and lost money and thankfully got access to Dr.Alexander Elder's materials before a wipe off!
   
   So now, we have a better way of self graduating to "MBA of trading' where you can be self reliant and retire by simply digesting Elder's books, his suggested reading materials, software ( ex : Metastock , tradestation), bite the painful bullet of losses, enjoy the pleasure of successful trade and slowly evolve to a mature trader. If you are a working professional, you will spend as much ( or more) time as a regular MBA Course, but at least if you happen to be a person fit for becoming an "MBA In Trading", you will be far better off than a MBA in a corporate culdesac.
   
   
   Here is the suggested order to graduate yourself to an "MBA in Trading".
   
   1. Trading for a Living: Psychology, Trading Tactics, Money Management ( You will need to read it twice)
   2. Start making journals and learn from your on trading experiences
   3. Come Into My Trading Room: A Complete Guide to Trading (Masterpiece...Read 4 or 5 times to absorb the spirit and content of the book.)
   4. Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading) (Read couple of times)
   5. Sell and Sell Short (Wiley Trading) (Read couple of times)
   6. Read the books mentioned by other full time traders in "entries and exits" ( ex: Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude)
   7. Understand Metastock, Tradestation, esignal type tools.
   8. Attend his seminar if you can afford it.
   
   Think about all the time ,money and effort you are going to put into it, it will be similar to the money spent on an MBA...and your title might be "Work from home CEO" with your job description like Self reliant full time trader who looks forward to Monday Mornings and for whom work is an everyday vacation and will work during a vacation also. He is available when kids need him
   
   Reviewing his book in solitude will not serve the reader since it is a sequence of learning material in a tough world and should be treated as such.
   
   I would call Come Into My Trading Room: A Complete Guide to Tradingas his masterpiece,but Trading for a Living: Psychology, Trading Tactics, Money Management is highly recommended because of the sections like all technical indicators explained. Some tools might be tailor made for you. In Come Into My Trading Room: A Complete Guide to Trading, the book has narrowed down to exact trading tools Elder uses which is great,but for a newbie , it is better to read the entire menu ( Trading for living) and then chose your dinner ( Come Into My trading room). In trading parlance, The above two books will have to be your "core" positions .
   
   Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading) And Sell and Sell Short (Wiley Trading) are the perfect desserts.E and E is a classic which walks through some sample trades and also a glimpse of tools those users use. All of the traders are trading for living, some with less than 250k equity . Elder looks at their trade and see how simple he makes his trading decision . Sell and Selling short is more like an addendum to his previous books with focus on exit strategies.
   
   I know there are plenty of readers who read financial (and wealth making) books for entertainment. If you are one of them ( The way to check is if you read financial books constantly AND do trading BUT do not have proper records), still this book will fit your case. Choice of words all along the book and subtle comedy makes it an equally interesting read.
   
   EXAMPLES of some punch lines (not verbatim):
   > A person who pees against the wind has no right to complain of laundry bills
   > Newbies swarm to options to get more bang for their bucks,but it is usually their head that gets banged.
   > What beginners call gut feel is usually an urge to gamble, and i tell them they have no right to a gut feel.
   > If you pay high above EMA, you will find a greater fool who will pay even more
   > Traders dream of profits but often freeze like deer in the headlight when a loss hits them
   
   Whichever book you read in whatever order, make sure to read it, read again and read again .. tread carefully on stockmarket.You might win and in small and subtle ways it is happening to me!



5. I'm just adding my voice to the chorus of people who unreservedly recommend this book.
   
   I have finished "Sell and Sell Short" and have found it to be the most cogent and useful manual for a new trader. I have read several books, but this is the one that stands head and shoulders above a very crowded field.
   
   It gives the impression of several detailed discussions with an elder (pun intended) and wiser trader who has graciously imparted his experiences in order to save you the time and pain of doing the same.
   
   Furthermore, the book is worth the text-book like higher price, because the color graphics make a big difference. I've read books where they will refer to "colored" chart information in a black and white chart. It undermines the entire purpose of the chart.
   
   If you're looking for one sensible trading guide that covers all the main bases, this is the one.

5 comments about Dynamic Hedging: Managing Vanilla and Exotic Options (Wiley Finance).

1. This is a fairly advanced Text on options. Taleb jumps right into option Greeks from the introduction.
   
   It is mostly oriented towards institutional traders and as a person with exposure just to equity options it goes right above me. So I had to go back and forth with Wiki to understand what he is talking about.
   
   You could see traces of Fooled by Randomness and Black Swan as he deals with various risk issues.
   
   Little bit pricey but goes to show even professional traders use broken models to invest millions of client money.
   
   My personal experience is Fundamentals of an equity affect its option pricing more than Vega/Theta/Row. Delta and Gama are somewhat in play. Taleb calls them liquidity holes but mostly it is Fundamental analysis.
   
   If a company has a massive debt restructuring coming up then options will behave differently before and after the event. Even Beta changes after the event.
   
   
   
   



2. Although this book was published over ten years ago, it is still a very excellent book about risk management rlated to exotic options. This book shares many insight ideas from practioner's point of view, which is seldom seen in other books. The only pity is that there are some minor typo. However, if the reader has some understanding of option theory, it is easily corrected by reader themselves. As a word, this book is very worth reading!



3. I still haven't received this book yet. I have already raised complaint and requested the book seller to re-ship this book



4. I'm pretty savvy, but don't have a background in finance. This book is way over my head, but I'm struggling through it. I wouldn't recommend it for casual reading. It's more like a text book. There are a few formulas but it's not overwhelming, there are short informational sections called "Option Wizard" which are helpful at explaining things.



5. Very academic, but extremely insightful. I was a music major, and with a little patience, I was able to understand everything in the book. I would recommend this book to anyone looking to get past just the basics.