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.

5 comments about Option Spread Strategies: Trading Up, Down, and Sideways Markets (Bloomberg Financial).

1. I saw that each strategy had about 30 pages of information, so I thought that the depth of discussion would be quite good. Unfortunately, the first 10 pages of each chapter is simply which options make up the strategy. Investopedia does the same job in 1 page. The next 10 pages shows pictures of the greeks, which I did not find very useful. Probably the reason why is that there is not a single options chain in the whole book. The values he picks for his greeks would seem to come out of thin air to the newer trader. Also, the pictures often times do not use the same scaling/pricing as the examples that they are supposed to be describing. Qualitatively, they are good, but it could have been much better if Saliba matched the graphs more tightly to the text. The only parts I liked was the last 10 pages when he talks about adjustments. I have had a tough time finding books about adjustments, and this one gives a good introduction to adjustments. Sometimes though, his advice is not really advice: "If your trade moves against you, then take appropriate actions to protect your capital." What can I do with that? I thought the exercises at the end were trivial. They test you to see if you understood what you read like "What does a short put vertical made of?" I would have rather seen questions about what to do in different situations, but these only make up 10 or 20% of the questions.
   
   Overall, I would describe this book as teaching the newer trader about how options work, but not how to trade them successfully. Saliba avoids complicated math and keeps it simple. As other reviewers have noted, he is perhaps a better teacher than others. However, this is really only an overview of option strategies and does not give enough real-world scenarios to equip the reader to make money by trading options.



2. If you are looking for a clearly written book on Options to understand and trade some good option strategies look no further. Anthony Saliba and his team have written this cook book style options instruction manual to educate the reader (with beginner/intermediate level options skills), so the reader can assess if the strategies are a good match to his/her risk appetite and trading philosophy and then trade them for potential profits.
   
   As the authors indicate in the `Important Disclosures', in order to trade the strategies discussed in this book the reader must have his trading account approved by a broker/dealer for that specific trading level. With this in mind, I recommend you look at three of the eight strategies discussed by the authors: Strategy 1 (Covered Write, or Covered Call or Buy Write), Strategy 2 (Bull Put Spreads with cash covered puts), Strategy 4 (Straddles and Strangles), since the level of approval required should be straight forward (for example, a level II approval at Fidelity).
   
   Any book however well written can stand some fine tuning to maximize the reader's benefits. Given the excellent exposition in the rest of the book, I would recommend that the authors could have taken greater care with the opening chapter on Covered Calls. The Profit/Loss diagram shows two profiles (Long Stock and Short Call). It would be a perfect accompaniment to the text if the authors showed the profile for the position (Long Stock + Short Call). This would better illustrate the `breakeven and Loss' on the downside, and the `profit and the opportunity loss' on the upside. The accompanying text misstates the maximum profit, which does not fit the ATM call in the example. In addition, the figure (Example 1, p 20) for original position and closing trade is introduced without any explanation in the accompanying text. Finally, to close my nit-picking mode, the authors could have included the P&L diagrams for a simple Call and Strike along with the definitions so that the book is amenable even to the rank beginner.
   
   The entire book is strewn with simple and concise advice (`nuggets of wisdom'). Example1: `Covered writes are not "fire and forget" trades. They require attention ...' Example 2: `call and put bull spreads and call and put bear spreads are synthetically equivalent... and may be used interchangeably to accomplish the same task. Deciding which one is best to use depends on the pricing of at the point of execution. Example 3: Traders looking for a "sure thing" can become addicted to short straddles and strangles. They give the appearance of making money in every direction and have unlimited profit potential.
   
   The inclusion of Greek profiles with each of the strategy discussions adds immensely to the understanding of the reader and provide the tools to assess the strategies for themselves. The authors neglect to say that the horizontal axis in the Greek chart represents `Stock Price - Strike Price'. All examples appear to be academic although explained very well. Inclusion of real ticker symbols would add greatly to the reader's feel and understanding (even if the author's may have to add one more caveat to the `Important Disclosures' section).
   
   In conclusion, this well written book belongs as a handy go-to cook book on your options reference shelf.
   Options Made Easy: Your Guide to Profitable Trading (2nd Edition)



3. I'm usually pretty open to reviewing books. Sometimes I get books that I can't do justice to in reviewing. The following two books may be examples of that:
   
   Option Spread Strategies: Trading Up, Down, and Sideways Markets
   
   Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors
   
   I'm not an options trader. Do I understand the math? Largely, yes. Do I understand how they can benefit investors? Also yes. I occasionally use options to enhance income, but for the most part, I avoid using them for personality reasons. I fear that I would make bad decisions while working at a higher level of leverage. I don't trust myself.
   
   As for the books, they are clear and well-written, giving both the common view of options, and the view using the "greeks" a la Black-Scholes. The chapters explain, and then offer tests at the end to see how well you have understood. These could be textbooks in a business school.
   
   The books explain how you can make money in any environment if your view of the world is correct. That's the catch, though. Few of us get it right within the length of time before an option expires. Be wary of the correctness of your opinions.
   
   Now, my opinion is not of the highest value here. Better to consult Adam Warner or Bill Luby, who have far more practical experience on a retail level. My experience is largely institutional with respect to options.



4. It's a good idea before buying a book, especially a book on options trading, whether you're in the audience for which the book was written. If you're a beginner, don't start here. I would recommend another book by the same author, "The Options Workbook." If you can make it through that book, you'll be more than prepared to take on this one.
   
   Learning options or anything else involves two very different types of skills: (1) knowing how to do what you're trying to learn; (2) knowing how to learn it. You can learn (1) by studying the subject itself, but not (2). And unfortunately, there are very few options-trading books on the market that will teach you. The reason is that most of their authors, while they may be great traders, don't know how to teach. In fact, when it comes to giving satisfactory explanations, many are scatter-brained. The great strength of Saliba's books is that he does know how to teach. The books are in workbook format. He gives you examples of the strategies he's discussing, gives a fairly detailed analysis of each, and then offers practice questions (with answers) after each strategy, as well as at the end of each chapter. There's also a bonus final exam at the end of the book. This is sound teaching technique; these books are almost ideal for self-study. If you're anything like me, you learn by doing, not by staring at a page in a book. Both of Saliba's books are very hands-on.
   
   Why do I say that Saliba's books are "almost ideal" for self-study? Because Saliba doesn't always spell out each of the steps that a beginner would have to know in order to justify the conclusions he draws. One thing a beginner has to know is how to construct a profit/loss table for any strategy he or she is studying, however simple or complex. And from that table, he or she must be able to construct the graph. Once this is done, he or she will know what the profit/loss picture looks like at expiration. The student will then know, for each price of the underlying at expiration, the intrinsic value of the component (long call, short call, long put, short put, long stock, short stock), and the profit/loss value for each. Once this is known, the combined profit-loss figure can easily be calculated. By looking at the table, one will know where the breakeven points are, as well as the maximum gain and maximum loss one can expect when putting on that strategy. "The Options Workbook" gives both profit-loss tables and graphs. But it doesn't make explicit how the values in the table are calculated. (Saliba probably assumes that the reader already knows this. But a beginner doesn't know this, unless he or she is told.) To close this pedagogical gap, I would recommend the beginner read James Bittman's book, "Options for the Stock Investor," especially chapters 1 and 2. While this process of constructing tables and graphs may at times be tedious, and even seemingly redundant, DON'T TRY TO SIDESTEP IT. Unless you understand the configuration of any option strategy at expiration, you really don't know what you're doing. And when you go online and click on the button to put on your position, you still won't know what you're doing. I'm convinced that a great many people who lose their shirts in the market, do so not because they were wrong in their prediction of the direction of movement in the underlying, but because their assessment of their positions were either wrong or incomplete.
   
   "Option Spread Strategies" does a fine job of integrating the option Greeks, and volatility, into the analysis I've just described. However, this means that you have a working understanding of the Greeks before you begin. Saliba's discussion of the Greeks in "The Options Workbook" is woefully inadequate. In "Option Spread Strategies," as I said, he skillfully weaves the Greeks into the fabric of the strategies he discusses. But again, he's making great demands on the reader's understanding of the Greeks. To get a working knowledge of the Greeks, I would recommend two books: (1) "Trading Option Greeks," by Dan Passarelli; (2) "Trading Options as a Professional," by James Bittman. (All the books I've mentioned are available at Amazon.) In Bittman's book, focus on chapter 4. In that chapter, pages 118 to 134 are crucial, because Bittman hammers away at the essential distinction between option delta and position delta, option gamma and position gamma, and so on, for each of the Greeks. Unhappily for the beginner, the discussion is extremely terse. But it contains everything you have to understand to work with the Greeks. After I had torn out what little hair I have left, I finally got it. So will you. And when you've got it, you will be more than well-prepared to delve into Saliba's book "Option Spread Strategies." But please keep in mind, there are no shortcuts to learning options. If you don't expend the time and effort to learn before you expose yourself to the market, you'll most certainly learn from the market itself, the school of hard knocks. And I would say that paying the price for these books is a whole lot less traumatic. If you can't explain EXACTLY what you're doing when you put on an options position, what you hope to gain, and what you stand to lose, you don't understand it. Unfortunately, there's someone else taking the other side of your trade, whose face you'll never see and name you'll never know. He too may not understand what he's doing. But is that a risk you can afford to take?



5. This book is written some of the foremost experts in the options industry. Anyone looking to take advantage of any market, not just a bull or bear market, should read this book. The "how-to" approach of this book will enable even a novice to participate in what has become THE DERIVATIVE MARKET of choice.

5 comments about Trading Stock Options: Basic Option Trading Strategies And How I've Used Them To Profit In Any Market.

1. I made 20,000 dollars. I have been involved in the market for a little four years, but really involved, as in a professional attempt for the last year. I had no idea what options were for the first six months of trading. I traded solely in the stock market and settled with using heavy amounts of margin, and occasionally making some big gains here and there (up a hundred thousand dollars), but my risk was usually bigger. I'd need fifty thousand dollars, twenty five thousand in margin, to make ten thousand dollars, two of which gets taken from me to pay the interest. I didn't like margin, I hate debt, and I hated borrowing money (It's why I've gone to the cheapest colleges I can find)... I've only had one Line of credit for a cafe I opened that was all, everything else was investors investors investors. Anyways. I decided after seeing so many books at Barnes and Nobles on Options that I should see what they are all about. Eventually, I decided I wanted to know what they were. So I bought a couple of books, since the internet told me I needed to have an advance degree in Calculus, and an understanding of greek, and all this other stuff. Well, Getting Started in Options was my first book. It laid it all out nice and simple, and was a very informative book on the options market, I read it in a day, then reread it a few days later to make sure I understood it. Then I started reading all these other books, but they seemed to be rather uninformative and they focused on how to make a living writing options, something I wasn't really all that interested in.
   
   Then I found this book. Trading Stock Options: Basic Option Trading Strategies, and How I've used them to profit in any market. This book seemed really informative. It wasn't McMillian's (which I've read), or The Bible of Options Strategy, but it was definitely the best book I think someone just starting out would like to have.
   
   If you don't have an understanding of the stock market, or what moves stocks, or how to find a stock about to break out, or is trending upwards, then this book is not for you. This book, in my opinion, is for the stock trader who wants to branch out into options. It's my opinion. Anyways, how I made twenty thousand dollars in one week. It was June 21st, the Front Month of a new options contract. Intuitive Surgical (ISRG) had just bounced from the 320's to the 359 or so. But it was closing down for the day. I decided that if it was down tomorrow I would buy some Puts at 330, I did just that about at 2.76 a contract, or 276 dollars, about 280 with commission. I bought 10 of them for a total of 2,800 dollars. Just as I thought, the stock crumbled. On the seventh day, I sold the contract for 20+ dollars, making 20,000 dollars in total on one trade.
   
   P.S. It wasn't my first trade, I've had several success and failures in the option market for months. This was a notable one for me because it's recent.
   
   Books I'd reccomend for stock moves that will help with option trading.
   All of Nicolas Darvas's Books (His books will get you into the mood of understanding that you can be successful at the stock market).
   Trend Trading for A Living by Thomas K. Carr (This book is by far one of the best)
   Trend Following by Michael Covel (especially if you're considering futures as well)
   How To Trade Stocks by Jesse Livermore (it was said that Jesse Livermore looked for stocks that would give him ten points in a week to a month, I've used his strategy several times to make a good deal of money on up and down markets)
   Stan Weinstien's Secret's for Profiting in a Bull and Bear Market by Stan Weinstein (His technical analysis is priceless
   How To Make Money In Stocks by William O'Neil (he's all about the break out buy).
   
   Options are not for everyone and just like stocks they are not for the get rich quick schemer or anything of the short. They require, just like stocks, the patience, discipline, and planning that you would give any endeavor that would cost you money.
   Good Luck, Good Trade!



2. Mr. Burns take you through the step by step. I enjoyed it and walked away with a far better understanding and concept on how to trade options.



3. I really enjoy going through the math to help me understand the procedure. I am only through 1/3 of the book and I think I have come across one error. Page 41 line 7 should be: $160.00 or 21.3%.
   The other authors just cannot understand that a picture is worth a thousand words!



4. I have found this book very helpful. Some aspects of options trading were confusing, but this book did a good job of teaching the nuts and bolts and the thought processes involved in making successful trades.



5. I LOVE Trading Stock Options. I wanted to get a basic understanding of how I might be able to use stock options to gain profit, and this was the best book I found so far. It was easy to understand and very well written. It will be helpful to just about anyone who is interested in learning the subject. What a great resource.

5 comments about Trade What You See: How To Profit from Pattern Recognition (Wiley Trading).

1. One of the best books I've read introducing Fibonacci levels, Gartley and butterfly patterns and even the basics of money management, trading plans and daily routine.
   
   This book is a must read for all beginning technical chart pattern traders.



2. I have built a small library of trading books in my search for the information needed to trade for a living. I have to say that Trade What You See and Larry Pesavento's methods is the answer I was looking for.
   
   It's different than most trading books because it focuses on pattern recognition and does not use any indicators. It took me a little while to remove the moving averages and other indicators I was using (with little success) and try this method. My win % is now over 60% consistently and for the first time I see that I will be able to trade for a living.
   
   The book covers it all from the patterns, money management, discipline and a daily routine.
   
   This book is the one publication that changed my trading career for life.



3. "Trade What you see" is a terrific trading book that will leave the reader with a complete trading plan that they can apply to any market in any time frame. In addition to being written in a style that even the most novice trader will grasp (no fuzzy industry termonology)..."trade what you see" has perhaps the most appropriate title of any trading book i've read...and i've read many. Readers are not required to learn any high level math or to understand complex financial analysis.The patterns and set ups that are covered in TWYS are very clearly explained and definitive rules for each setup are detailed within the book. I highly recommend "Trade what you see"



4. I've followed Pesavento for years, and his market calls are right on the money -- and he did it again calling the October 6th, 2008 week historic decline.
   
   It's usually the soft spoken guys that really know what is going on in the market -- and when they speak you should listen. Was listening to a radio interview with another great market technician, Bennett McDowell - he wrote "The ART of Trading" The ART of Trading: Combining the Science of Technical Analysis with the Art of Reality-Based Trading (Wiley Trading) -- McDowell was on the "Financial Wisdom" radio show on [...] the other day because Gabriel Wisdom, the host, was so impressed by how McDowell called the same decline on Friday, October 3rd, 2008 -- also right on the money.
   
   What Gabe Wisdom said in his interview with McDowell is that he also had Pesavento on his show earlier, calling the same decline, and Pesavento was hesitant to make the call on air -- since he didn't want to concern the listeners. And that is the challenge for these guys that make these calls -- they see what their analysis tells them, but don't want to overly alarm the general audience.
   
   Pesavento uses Astrology and Pattern Recognition to make his market calls and McDowell uses Elliott Wave and his ART, Applied Reality Trading, software to make his calls. Both are based on technical analysis, which some folks still are afraid to embrace. But, now more than ever, the average trader AND investor must start to learn how to use these techniques. Now more than ever we all need as much ammunition as we can get to work through the existing economic downturn.
   
   Best not to rely solely on your financial advisor and/or broker, and instead take your finances into your own hands. Pesavento's book and his approach to pattern recognition will teach you how to do just that. Recommended reading.



5. To those who would dismiss the author's writing, theories, etc. the proof is in the pudding. I have the opportunity to listen to this gentleman from time to time in radio interviews and he called the entire week of declines for the first week in October 6-10th AND last week he correctly predicted significant problems from the 24th through the 26th.
   
   If his text helps you simply avoid entering a position, he has done you a service. His analysis and logic has been spot on and I look forward to his next book.

2 comments about Financing Real Estate Investments For Dummies.

1. As a "seasoned" real estate investor, I did not expect much from this book. Considering the typical "Dummies" format, there woudn't be much in there for me, right?
   
   Wrong. I was pleasantly surprised to find a well thought-out detailed approach for evaluating investment properties, and various financing options. While time and the market have changed some of the finance options, the content on NOI and cost evaluation are right on, and the authors did a terrific job in making sure that novice investors understand that this is a BUSINESS decision, not an emotional one. The bottom line is that the numbers have to work.
   
   I have enjoyed other books by Chip and Ralph, and was glad to add this to my collection. It would be a great place to start for any individual just getting started in the real estate investment game - and there's even some good stuff for us old pros ;-)



2. Typical of a "Dummies" book, the format is easy-to-read and follow, with a LOT of great content.
   
   Authors use a lot of examples and provide good formulas for calculating value and NOI numbers. Does not go into enough detail for larger properties or more complex deals, but again, understand the "format" is for beginners.
   
   Added this to my bookshelf as I have enjoyed other books by the authors, and looking forward to more material in the future. Definitely recommend this for anyone starting out in investment real estate.

5 comments about The Mathematics of Financial Derivatives: A Student Introduction.

1. Good Book but it lacks lots of basic information to understand the material. In order to solve the problems, you will use more Google that the book if you are new to this area.



2. This book is awkwardly written. Quite summarised, the approach used for discussing the PDEs is not familiar - see other reviews. The book as a whole doesn't fill any gab, e.g. it is not a mathematical finance book, definitely not., see Shereve or Neftcie for an example. On the other hand it is not a tools or recipes book for pricing derivatives. It doesn't do any function for me, just a waste of space. For every book I have - many, I can pick something useful from time to time, apart from that book, total waste. I am surprised of the book name, and who would be the target reader!!



3. I bought this book to learn about financial derivatives by myself. It is very easy to read for a first timer, no prior knowledge is required. It is also very comprehensive in its coverage of the subject. Overall it is a very good first book for the subject.



4. Wilmott's book was one of the first to tackle options pricing from a PDE point of view. The original book (now out of print) was a little more detailed and later superseded by this cheaper "Student Edition" overview on one hand and the "Wilmott on Quantative Finance" 3-volume set on the other hand. A per its title, this is an applied mathematics book, and therefore a minimal level of math is expected from the reader (so please, do not compare with Hull...).
   
   Taking a PDE approach, the book aims at presenting various methods for pricing financial options. While the first few chapters are pretty good at skimming the surface of the theory and laying down the key principles of options pricing, the book, in general, lacks depth. Many results (prices of barrier, lookback, asian, etc...) are given without real development or simply with a little "hand-waving". As soon as things get a little complicated, Wilmott just outlines the way forward and drops buzz-words.
   
   In that sense, the book, while attempting go beyond introductory level topics in some details, does not provide great insight into the more difficult areas of option pricing and, lacking courage, simply goes through what has become the standard presentation without adding much value. Not for beginers, but not for more advanced readers either !
   
   It is nonetheless an acceptable quick overview if you are looking for a refresher of key concepts. For a more thorough mathematical introduction to options pricing, You-Lan Zhu's book (for example) does a much better job at covering the PDE approach rigorously (proving for example some of the convergence criterias for the finite difference method, covering the linear complementarity approach as well as presenting other numerical techniques) without being overly formal.



5. maps one to one with many chapters in Hull. more elaborate derivations than Hull. Fixed income area treatment is very slim though. Good Buy for the Price.

4 comments about Iron Condor: Neutral Strategy for Uncommon Profit (Power Options: Option Trading Series).

1. This book has some good information about iron condors (and by default covers credit spreads, too). BUT, it is really an infomercial for the PowerOptions website. You can not implement many of their methods without a subscription to the PowerOptions website. Not that there's anything wrong with PowerOptions or promoting it, you should just know up front, that is the thrust of the book. BTW, PowerOptions is a great service and well worth the cost for the serious options trader. So, this book gets 3 stars for the book itself and a 4th star when combined with PowerOptions.
   
   So, if you're just tinkering with options, save your money for the next commission. If you are a serious options trader, go getchya a copy!



2. This limited area of option trading is justified in having its own book, and this one is a decent start.
   
   It has these strong points: clear explanations, good charts, good explanation of managing iron condors both when they go well and when they go bad; good discussion of stops, and a short description of 2 similar strategies. It convincingly shows why the strategy is best for indices and not individual stocks. There were some valuable insights that were original to me- most importantly the value in diversifying to non-correlated products not only to reduce the risk of adverse moves, but to spread the reserve needed.
   
   It had weaknesses. First, with current book indexing software, I can't understand why it did not contain an index. Second, I feel that a discussion of volatility skews is essential in discussing option pricing and strategies, but this was never mentioned. Third, there were only a few words on using iron condors with futures options. This is an important topic for option diversification, margin, and hedging possibilities.
   
   Interestingly, there was no discussion of greeks. I did not find this a problem, but a longer book needs to at least reference them.
   
   The book did spell out an iron condor trading system, but it was too vague. Instead of "with high volatility" it would have been helpful to say "When the Implied Volatility is above X" and be more specific about entries and exits.
   
   It did show the authors' results of trading over the years 2006- 2009, but the actual system was not described in sufficient detail. A monthly performance would have been an improvement and a more detailed performance summary. (By the way, there are references to the authors website, but I found them limited and appropriate, unlike a few recent trading books that are just website promotions).
   
   From a personal perspective, I would have liked to have seen a comparison with advantages and disadvantages of iron condors to naked put selling. I note one of the authors has also written a book called Naked Puts, so a comparison would have been natural.
   
   Finally, a word of caution to those thinking of starting to trade iron condors. The authors have a website that tracks their performance since 2009. (It also tries to get paying subscribers). The website is quite poor in describing the strategy and trades, but from my reading, it shows that it has traded 3 iron condor systems. One (Meridian) did so poorly it has stopped trading, and the other 2 (Chromium and Optium) came close to being wiped out this April. (It looks to me that the systems are too focused on the stock indicies and would be better to diversify into commodities). Interestingly, their Double Diagonal System (Quantium) shows a slow and steady return. Maybe that will be their next book (smiling).
   
   The poor recent results of a particular iron condor system do not negate the value of the book, and the insights it gave me. That is why, overall, I would give it 4 stars.



3. Excellent. Down to earth. Presents a realistic, complete trading strategy which I haven't found elsewhere. Others are usually limited to definitions and limited examples.



4. The book "Iron Condor" by Ernie Zerenner and Michael Phillips is a superbly written book describing both the basics and advanced details of this neutral option trading strategy. It gently leads you to the most profitable iron condor strategy- short term selling and buying of index options. I personally have used this approach before buying the book but with limited success. This book taught me how to manage my iron condors to avoid painful in-the-money losses. It also showed me how to roll up one side of the vertical spreads to increase my profits. Since buying this book my iron condor profits have soared! I would recommend this book to all option traders who want to achieve consistent, modest, monthly profits with limited risk and don't want to spend a whole lot of time every month trading.

5 comments about The Option Trader Handbook: Strategies and Trade Adjustments (Wiley Trading).

1. Most of the time when I buy books in the hopes of learning a thing or two about trading options, they are written at a cursory level and don't really add much new to the general pool of information. This book has me pleasantly surprised.
   I have been trading options for a few years, mostly just buying or selling options or verticals. It was time to learn more. I also wanted very much to learn how to save a trade that moved against me when I wasn't paying enough attention. This was the one book I found that seemed to offer such information.
   It's not easy reading, mostly because it is so in depth. But it's not mind boggling, just deserving of a little extra time and patience, and perhaps a re-read where the info won't soak through the first time. I think it has given me greater understanding of why my good trades go well and my bad trades don't. And it has made me feel ready to perhaps try some new strategies that I had a cursory uderstanding of, but now seem to make sense in the framework of the characteristics of the options being traded.
   I think this is a must read for anyone beyond the beginner stage of options trading. It might be a bit much for anyone who hasn't got a little experience.



2. This book is not bad from the perspective of an overview of basic option strategies. I don't have any complaints but i also don't have any big compliments. This is one of many general option strategy books out there. My only big complaint is the cost -- i think the $60 list price is a bit aggressive compared to what you can get from competing books out there.



3. The other reviews point out the highlights of this book. I do think this is a worthwhile addition to any intermediate option trader, but I have to say if you are a net option seller there is little direct reference to your strategies. Still lots you can take from it, but not so much directly to your strategies. If you want to learn what to do when the call spread you sold is being threatened, you are not going to get a lot directly related to this. That being the case, buy and learn from it anyways as you will pick up or remember stuff that will make you a better trader.



4. Phil has written an outstanding piece of literature and one would do well to study and apply the concepts presented therein!



5. It's the on and only book that give me what I want to know and fallow about options. you dont nee to be an expert to understand this book.

5 comments about Volatile Markets Made Easy: Trading Stocks and Options for Increased Profits.

1. I read this book after his earlier book "Options Made Easy" ,which paved the way to get more out of this book. In adition to the well presented standard fare in options books, the author also addresses the psychological aspects which can be half the battle when trading. The examples presented were beneficial and,as a learner,the more the better. Again, a good read coupled with his earlier book.
   Although it is not necessary for an option trader to understand the mathematics behind the option models used, the author does include equations which is quite helpful in my opinion. The reason for this is that any trading strategy is used more appropriately if the trader understands the math behind it.
   I have had better profits selling options when volatility is high and moving lower and buying them when volatility is low and expected to go higher.
   His statement "if volatility in the market continues to rise , then buying these options will be rewarded by higher premiums,provided the implied volatility of the options follows suit" seems to advocate buying options when volatility is high and expected to go higher. In my experience this is a dangerous strategy since if volatility collapses the option premiums will collapse with it and you are likely to face a loss quickly.This is especially true if you bought an option during a period of high volatility.
   Also I wished the author mentioned the effect of lopsidedness in open interest between puts and calls on the likelihood of a specific option expiring worthless. I read this in another book and was amazed at the accuracy of this approach in predicting whether the puts or calls are more likely to expire worthless .
   Even with the minor critical comments the book is still worth reading.



2. If I were to characterize Guy Cohen's book 'Volatile Markets Made Easy' by a single word, it would be 'Clarity'. Investors/traders who are relatively new to Options, would be well advised to read Guy Cohen's earlier book 'Options Made Easy' (published in 2005) before reading 'Volatile Markets'.
   
   Trading is always profitable, if you get the direction right (usually Up for long Calls and Down for long Puts). When you get it right, have a plan for taking profits. For those times when you don't get it right,
   Guy has a good suggestion: Base your Stops on stock price and not on the option price.
   
   The discussion on Greeks is excellent; the graphics (screen shots) would be easier on the reader's eyes and brain if they were a bit clearer. Of course I am picky about clarity, because I am spoiled by the absolute clarity in Guy's writing. For example, while discussing implied volatility Guy writes: "If volatility in the markets continues to rise, then buying these options will be rewarded by higher premiums, provided the implied volatility of the options follows suit."
   
   Although Guy seems to prefer simple line diagrams (example Figure 4.1 Straddle Components) I would recommend a forward reference to Figure 4.6, p111 which better illustrates the relative axes positions essential for the understanding of the Straddle risk profile. The same applies to Strangle (Figure 4.2 vs. Figure 4.19).
   
   I am somewhat puzzled by the section `Adjusting Trades and Gamma Trading' (p 129), which does not appear to meet the clarity standards I expect from Guy's writing.
   
   While most authors shun using mathematical equations, I appreciate Guy's daring inclusion of Option Pricing Models (Black Scholes and the Binomial model). This will encourage at least some readers to be exposed to `what creatures these pricing models are', in spite of lack of inclination to grasp the concept in detail.
   
   Perhaps the best one learns by reading Guy's books is his simple trading philosophy: "... by taking profits early, we remove stress from our trading even if it means we don't make the maximum amount from each and every successful trade." I couldn't agree more since `no one goes broke taking profits'.
   
   Options Made Easy: Your Guide to Profitable Trading (2nd Edition)
   Option Spread Strategies: Trading Up, Down, and Sideways MarketsOption Spread Strategies: Trading Up, Down, and Sideways Markets



3. Guy Cohen has written an incredibly good book concerning today's volatile markets. Throughout the book he gives exact examples of what option strategy to use to maximize your profit and minimize your risk. He gives real insight into the psychology of the markets and how that interplays your timing of your entry and exit of a trade.
   
   The book not only explains exactly how to use well-known volatility strategies like straddles and strangles, but also compares them in detail to ratio-backspreads where he shows how risk can be even better mitigated. That is one of the unique areas of this book and one of the most valuable.
   
   Another thing I liked is the author's intimate understanding of your emotions when a trade is on, and how to manage your trade practically so you retain your sanity. He explains that the biggest losses tend to come where a trader doesn't grab the opportunity to take a profit when it presents itself. How true that is! This forms the essence of Cohen's trading plan to take some profits off at a conservative initial profit target, but allow the remainder to trail any remaining profitable movement for a potential "windfall" gain. In trending markets this trading plan is golden. In rangebound markets the trading plan will keep you out of too much trouble.
   
   I recommend this book for the beginners as well as the seasoned traders. Volatile Markets Made Easy will certainly help you make money and is a must read book for these volatile crazy markets.



4. Back in the 1980s a move in the Dow Jones of 50 points was considered big. Since the collapse in 2008 and rebound in March 2009, volatility has been constant in the marketplace and Guy Cohen's book leads the way in demonstrating how to take advantage of the wild swings in the market.
   
   If you don't know how to profit from explosive movements up or down or have a history in mutual funds or buying stock alone then this is a must-read book for you. With an established track record in making options easy and accessible to the retail trader, Guy Cohen builds on earlier work to provide key insights that every trader and investor should know. A must read for all who are seeking better control of their own financial futures.



5. I can honestly say that I was suprised how much I did not know about trading the stock market when I started reading Guy Cohen's book.
   
   I have been trading the markets for some years and have been generating quite a decent income from it just by applying a couple of very simple strategies. However, like most traders, my trading has always been plagued with some common problems: being stopped-out too early and too often, my entry order being triggered prematurely and then the market turning against me, not knowing when to take a profit and then finding myself leaving money on the table.
   
   I have to say that had I read this book ten years ago, I would not have made so many mistakes in my trading. Guy Cohen explains that there is actually indeed a solution to the problems mentioned above. For example, he explains how by trading flag patterns (in the style that he trades them) we can avoid prematurely entering a position, whether long or short. Furthermore, I am convinced that following his strategy, there is indeed a way we can significantly reduce the rate at which we are stopped-out of a trade. For example, he explains very clearly there is a science to placing your stop-loss depending on what you see on the chart. Plus I now have a clear plan as to when to take profits.

2 comments about Trading Options in Turbulent Markets: Master Uncertainty Through Active Volatility Management (Bloomberg Financial).

1. Larry Shover's "Trading Options in Turbulent Markets" provides an experienced floor-trader's savvy for handling derivatives in a marketplace when most other traders would rather run screaming for the exit. I was at an options trading firm in the fall of 2008, and the market was so chaotic we pulled our quotes for a month and sat back to watch. That's a good way to avoid losing a lot of money, I suppose, but if your goal is to make money it won't help you much.
   
   But it's that marketplace--and making money trading in that marketplace--that Shover has in mind. He carefully explains complex trading concepts for a reasonably astute audience. It helps to have a background in the financial markets for this work but you don't need a degree in calculus or engineering by any means. And the author keeps his writing lively with stories from his own years buying and selling futures and options contracts. But most important, "Trading Options in Turbulent Markets" delivers well on its title. The author details exactly how to handle complex and risky derivatives products in this new era of trading, the post-End of the World, post-Fall 2008 marketplace, where everything is volatile, everything is uncertain, everything is unpredictable.



2. Mr. Shover has done a wonderful job of discussing the uses of options for every type of market; not just turbulent ones. So the book goes beyond what it promises, but does so in a surprisingly readable style. There are many good theoretical option books on the market, but this is one of the best practical books I have seen. A must for every trader's bookshelf!