No comments about Market Expectations and Option Prices: Techniques and Applications.

5 comments about Consider Your Options: Get the Most from Your Equity Compensation, 2005 Edition.

1. I am a tax preparer and an Enrolled Agent, and this book is one of my main sources for understanding the treatment of options and explaining it to my clients. My copy of this book (the previous edition) is heavily marked up with yellow highlighter and handwritten notes. I pull it off the shelf when I sense that my client suspects I am making the rules up.
   
   While the main focus is on options, the book also does a good job on the treatment of restricted stock and of shares purchased through an employee stock purchase plan (ESPP).
   
   Also, the book does not neglect the impact of the AMT, a common fault in tax books.
   
   I gave it 4 stars (I don't give 5 lightly) because I thought some of the explanations could have been clearer. The author does not use diagrams at all; I've always found them very helpful in explaining ISOs in particular.



2. Barring an extensive endeavor to compile the various option programs offered by industry on you own, Thomas' "Consider Your Options" is an extremely helpful text for both individuals new to the options sphere as well as experienced program administrators to pick up on the nuances of the various qualified and unqualified differences. Definitely a must-have for either executives or financial advisors who work with executives to use as a tool to help establish a strategy to protect and enhance their wealth. A solid addition to your desk reference library. 4 Stars.



3. This book is good in that it covers all the basic mechanics of stock options -- Incentive and Non-Qualified, and ESPP plans. However, this basic information can easily be found on the web or from your employer.

   What is sadly lacking from this book is advice on strategy on how to manage options, e.g., ideas on when to exercise and sell. Because of this, the book is quite disappointing to me and not very useful.




4. This is the perfect book for anyone who has any stock options or who can participate in their company's Employee Stock Purchase Plan (ESPP). It starts very simply, and in a series of short, but complete chapters, covers the spectrum of stock ownership, vesting, ISOs vs. NQOs, the effect of AMT, and much more.

   Did you know that stock purchased in an ESPP is treated by the IRS in almost the same way that an ISO is? That there is usually no long-term advantage to buying and holding Non-qualified options? That you only have 30 days to file your 83b exclusion? (If you don't know what an 83b exclusion is, you need this book).

   The book does its best to explain Alternative Minimum Tax (AMT), and althought this chapter fried my brain, its because of the complexities of the AMT (simplify it IRS!), not because of the book.




5. An excellent resource for anyone seeking to understand and be involved in planning strategies to maximize the after-tax value of your stock compensation. Covers restricted stock grants, options (ISOs & NQSOs), employee stock purchase programs (ESPP). Various areas of tax planning are covered in detail: strategies to minimize AMT, effects of early exercise thru 83b election, gifting or donating options/stock, etc.

   The author describes topics in a matter that is both thorough and easy to read. The book is organized into sections devoted to specific topics making it easy to skip or skim sections that may not pertain to your particular situation (e.g. there are separate sections on NQSOs and ISOs). Additionally, the author makes good use of examples throughout the book to illustrate complex rules. This latest edition (Apr 2002) includes updated information regarding changes to tax laws as well as explanations of pitfalls that many optionees have encountered recently (e.g. ISO "wash" sales).

   This book is a must have to anyone who receives a portion of their compensation in the form of equity, whether it be stock grants, options, ESPP, or any combination of these. The book is both an informative read as well as a handy resource to keep on your bookshelf. After reading this book, most people will have all or nearly all the tools & info they need to develop their own strategies for managing their stock should they so desire. For those seeking professional advice, this book serves as a great overview so that you can understand the process and ask all the right questions. I only wish I had found this book sooner :)

3 comments about The New Option Secret.

1. This book is excellent! I've implemented most of the techniques in this book, and have made a bundle of money! This is one recommendation that you won't need to consult your broker for...BUY! If you're learning options for the first time, make sure you have a firm grasp on how the futures market works first.



2. Just another piece of junk by an author who puts out anything to make a buck. This book tells you nothing if you ever read anything about options. My eigth grader could of wrote this book if he was not dead.



3. Haven't had a chance to review it yet. Looks good though. Send me a copy and I'll look it over for you.

No comments about America's growth stocks: The 169 strongest performers.

No comments about Entry and exit decisions based on a discount factor approach [An article from: Journal of Economic Dynamics and Control].

No comments about Studies on the effect of trading volume and return volatility on call warrants and underlying stocks in Taiwan.(financial commodity call warrants): An ... Quarterly Journal of Business and Economics.

No comments about The Ultimate Lease Option Strategy: Targeting the "Tired" Landlord.

No comments about Investment under uncertainty and time-inconsistent preferences [An article from: Journal of Financial Economics].

No comments about Technical Analysis in the Options Market: The Effective Use of Computerised Trading Systems.

1 comments about Credit Risk, Capital Structure and the Pricing of Equity Options.

1. For a graduate student in finance with an interest in derivatives, this is an excellent introduction to
   * structural credit risk models (starting from Merton 1974, guiding the reader to very recent models)
   * change of numeraire techniques
   * the extension of structural credit models for option valuation.

   Although - at first sight - it seems to be very technical, this is definitely the most accessible book in this area I have ever seen!