5 comments about McMillan on Options, Second Edition (Wiley Trading).

1. This second edition of McMillan on Options has some useful additions. Also the number of examples has increased. Everyone wanting to sell volatility can find everything he or she needs in this book.
   
   Jan van der Peet



2. Excellent book on options. Talks about trading systems in which to use options and what strategies to use.



3. Excellent book but you must have a good background on options to benefit. The best book ever on options. AAA+++



4. Lawrence G. McMillan is the author of the famous title "Options as a Strategic Investment". What's the difference between the two books? This one is entirely different: it teaches option trading in actual examples, and is not intended to be a complete definition of strategies. This is a book in which the application of options to actual trading situations is discussed. It assumes that you are already familiar with the stock market to some extent and have traded stocks but not options. There are plenty of real trading examples, many of them taken from the author's trading experience. In addition, there are a number of stories--some humorous, some more on the tragic side, that illustrate the rewards and pitfalls of trading, especially trading options. If you like the analysis of historic events in the markets, I can also recommend "The Only Three Questions That Count" by Ken Fisher, in addition to this book. If you like the history even more, I can recommend the trilogy: Financier, Titan and The Stoic by Theodore Dreiser. Seriously!
   
   Pros:
   - explains in a very interesting way the history of listed options and other historic events;
   - humorous, vivid, entertaining and amusing;
   - unique advises from the author's experience;
   - uncovers the predictive power of options in a very detailed manner with lots of case studies
   - analyses the seasonality of volatility, The January effect, Late-October Buy Point, and other patterns and dependences;
   - excellent chapters about the trading philosophy;
   
   Cons:
   - Chapters about selecting the right broker, getting the quotes and understanding the order flow are outdated;
   - An important technique of selling puts as a way of buying the underlying security is not covered in this book, but covered in the others first book "Options as a Strategic Investment". Warren Buffett obtains most of his stock holdings through selling puts. He got most of his Coca-Cola Holdings this way, and, recently, Burlington Northern Santa Fe. If you are interested in this technique, read chapter 19 of "Options as a Strategic Investment";
   - Doesn't have a single references to other books.
   
   There are many books about options, but this is a must read.



5. I haven't read much on options, but wanted a book about trading options (with all complexity that involves). This book feels a bit dated. It does a fair job describing different strategies; straddles, butterflies, etc. But it doesn't do a good job describing different technical measures. It does cover the put-call ratio, but you do not get a feel for how useful the measure is. Implied volatility is hardly covered at all and ditto for VIX. That is just not acceptable. Note that this is a second edition so the original book is quite old. I don't think there is much change between the editions.
   
   I don't have a better suggestion because options are not really my thing, but I would love if somebody has a better book to recommend. Please add in the comments section.

5 comments about Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames.

1. Options are not easy at all. Wisely the author does not make it easy either, and the book gives some hard time to a reader. Instead of simple strategies and directional guesswork in turbulent markets the author proposes serious work based on mathematics and deep understanding the subject. The book argues for solid systemic risk/reward calculations, experimentation, model fine tuning and your own efforts. The book also gives crucial background information on price dynamics in current markets and warns about numerous pitfalls and common oversimplifications.
   
   Using some mathematics and spreadsheet programming you can get test models and simulations working to begin with. The book leaves the final work to the readers because in the market the investor and trader oneself must be responsible. It does not make it easy for novices but author's earlier books follow the same pattern of thinking and they are of great help on the way. Especially clearly we can learn how to approach the central and difficult factor of implied volatility. You have to invest your time to get into this multidimensional problematic. The book is about very brief time frames which may cut down the interested audience but the same models work in any time frame. The book is an important contribution to investor community and it is a must reading for anybody serious about stocks or options.



2. 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.



3. This book does not contain as much math and theory as I expected, so I could understand its contents well. However, it is very short, and really only discusses in detail his method using standard deviations, which is not bad.
   
   Unfortunately, this book lacks more explanation on how to implement the method described(downloadable .xls ?). For the price it is worth it, but keep in mind that it has a limited amount of information that may be helpful.



4. Volatility trading is an elusive subject with few practical texts. Retired floor trader techniques usually don't work well for retail traders and the available books on volatility are theoretical lacking practicality. Augen's book should really be considered a textbook written from the perspective of an active retail trader who thoroughly understands volatility and trades volatility both long and short. This book argues subtly but powerfully against time decay strategies such as condors and butterflies. Too often volatility spoils these trades. Augen's book presents concrete examples of price anomalies and market distortions where volatility yields profitable trades in short periods of time. The book describes real trades and discusses the theoretical underpinnings. The information is put into perspective with discussion of volatility with nuance and texture absent in other books. To capitalize on this short book requires copious note taking, case based reasoning and modeling software to visualize both the many concepts and the risks associated with placing and maintaining the positions. This book is not intended for a passive reader. It is most rewarding to those who are knowledgeable about option theory, and option trading experience. The option strategies that are described in detail in this book are rarely or only briefly mentioned in passing elsewhere, and include ratio backspreads among others. One of the most compelling concepts is modeling price movement in terms of volatility, i.e. as standard deviations. . This book affirms Augen as the ultimate preceptor in Option Volatility.



5. I manage a hedge fund that trades equity and index options. Augen's books are required reading for all our traders. The current book is by far the best. The most important sections for us have been the discussion about calculating volatility in different time frames and the detailed trend analysis using minute-by-minute price changes expressed in standard deviations.
   
   Following the approach outlined in this book, we now calculate a stock's overnight, intraday, and close-to-close volatility. Comparing these values allows us to identify stocks that have large overnight risk or stocks whose options are underpriced during the trading session. We use this information exactly the way the book describes along with our own knowledge to structure trades that are statistically advantaged.
   
   The trend analysis using minute-by-minute price spikes calculated in standard deviations is equally valuable. This approach has dramatically improved our day trading capability. We've been building on the idea using other indicators and time frames longer than 1 minute.
   
   The book is a fine piece of academic quality work. It's far superior to the more common "get rich quick" style investment books that have little value for serious investors. But it's not for beginners. Like the other books in the series, it was written for serious option traders.

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.

5 comments about Option Trading in Your Spare Time: A Guide to Financial Independence for Women.

1. I bought this book (kindle version) and found it to be both good and not so good. The information about what options are is adequate. A lot of the book is concerned with chart reading and the authors' take on that subject. Now charts do help you, but a lot of the information she provides is found on the chartschool section [...] (which she gives credit to) and that info is free. As you read the book you'll find you are constantly going to this web site to get a clearer understanding of what she is writing about in the book...some of the strategies are good, but not that revolutionary. I felt I did not get as much out of this book as I thought I would but did learn a few things...oh well, off to my next book on options. Hope it's better.



2. This is my first review on Amazon and this book really deserves 5 stars. I have always been curious about option trading (taken many finance classes in college/graduate school) but have been too scared to actually do it. This book demystifies it and breaks it down into steps you can follow for a thorough analysis. She goes through technical and fundamental analysis, and then puts it all together in a step-by-step trading plan. It's well written and easy to understand.
   
   After I bought the book, I realized that Wendy offers support on her website, chatroom and newsletter which is a great addition to the book. Thanks Wendy for this book, I would never have come this far without it.



3. This book is really well written and organized. I was pretty much a novice in this area and this book gives you all you need to get started in specific areas of options. I bought another book that attempted to cover too much and was really confusing. This book takes on just enough of the subject matter to be meaningful, but not to much so as to confuse. I read the book twice and go back for review. The authors have done an excellent job of covering the subject. I highly recommend this book.



4. If you are interested in entering the world of option trading and unsure where to start, I highly recommend Option Trading in Your Spare Time by Wendy Kirkland and Virginia McCullough. I know Wendy Kirkland personally and she is actively trading options with success. I like lining up with success! In addition to the book, Wendy offers additional support through her website, blog site, newsletter and chatroom. Thank you Wendy for your loving spirit and all that you contribute. You are making a difference!



5. If you are like me, someone who knew nothing about options before reading this book,(not even what an option was exactly) but are interested in learning, this is the book for you. I considered many titles beforehand and decided to try this one because it seemed so "beginner friendly" and was at a reasonable price. But don't let the "low" price fool you. It is very well written and loaded with ALL the information you are going to need. The authors, Wendy and Virginia, even walk you through opening your online account.
   
   There is nothing intimidating here. I felt as if Wendy were sitting next to me having a cup of tea and saying "You can do this!" An easy read and also a great study guide as I keep the book handy for quick reference.

5 comments about Show Me the Money: Covered Calls & Naked Puts for a Monthly Cash Income.

1. i'm very disappointed from this book, it's a gimic not a serious
   book. it seem that the author found a money tree from writing his
   ideas over 4 different books that are more or less the same.
   the books has advertise for the author books and service which is a
   good reason he wrote it.
   last line- don't buy, look for other things.



2. My husband and I are currently taking a classroom course on trading options. Believe it or not, there is a safe way, with minimal risk, to trade options and make monthly income! Most people only know how to lose money on options, not how to make money. This book was recommended to us by one of our class mates and it certainly reinforces safe, money producing option trading. Selling naked puts and covered calls is the main thrust of the book and delivers the information in a simplistic, easy to understand way. It does tout some software that I personally won't be using but that's okay. The book is written so anyone can understand the "how to's" of option trading. I definitely recommend this book for beginners that want to understand an income-producing method of trading options in the stock market.



3. Do you like corny stories of a master teaching a student? Do you like a book with little real content other than to support the author's software? Then this book is for you.
   
   Groenke's book outlines the heart of his system, Buy Rank. Take a close look at the calculation and the simple version you can figure out in 2 seconds looking at a stock chart.
   
   There are two parts: Buy Limit that feeds into the Buy Rank calculation. Look closely, really it is a laughable joke. A calculation made to justify software, a book, and make people think they have a magic formula.
   
   Buy Limit = Low + .25 * (52 Week High / 52 Week Low)
   
   Buy Rank = (10 * (Buy Limit - Close)) / (.25 * (52 Week High / 53 Week Low))
   
   Buy Rank: Produces a number between +10 and -30. A +10 tells you the stock is at a 52 low. -30 tells you the stock is at a 52 week high. WOW-WEE! How about peaking at a 1 year stock chart for 2 seconds. The book recommends you buy a stock when Buy Rank moves down from 10, to 5, and the stock is over the 50 moving average.
   
   Simple Version: Buy a stock when it is at a 52 week low, is now turning up, and crossed over the 50 day moving average. THAT IS IT, Buy Rank in 1 sentence. The Buy-Rank number is nothing more than a gimmick to sell a book and make investors think that it is some "magic formula" when it is NOTHING MORE than the old "buy low sell high." A 2 second peak at a stock chart will tell you a stock is at a 52 week low. Want to scan for stocks at 52 week lows, go to MSN or Yahoo, and put P/E > 0 and < 20 so you are looking at value.
   
   Conclusion: You can buy any number of books that discuss naked puts and covered calls. This book has very,very little content, chapters of a lame story, basically it is a user guide (and a week one at that) for the software. As for the software, get your free trial and keep in mind what buy rank really is. You may then realize you do not need it. You should get the book for free if you bought the software.
   
   One so-so tip from the book was "okay" you want to own 1000 shares of a stock, buy 500 shares, sell an ITM call, sell 5 OTM puts. There ya go, the best part of the book is now yours.



4. This is agreat book. Finally able to make steady money in the market. Read it 5 times



5. If you're already familiar with covered calls, this book is elementary. It really could have been condensed into about 25 pages, just including the stock search criteria and the explanation of the key indicators. I tried out the trial of the free software also. It was all right, but nothing your brokerage couldn't give you. I paper traded a couple of the recommendations and they did all right, but the problem was the option premiums on the selected stocks were too low to make any money.

5 comments about How to Make Money With Real Estate Options: Low-Cost, Low-Risk, High-Profit Strategies for Controlling Undervalued Property....Without the Burdens of Ownership!.

1. Watch Video Here: http://www.amazon.com/review/R2ADKXEMVQYHXW Thomas Lucier is one of the first guys I learned about Lease Options from. He is a no-holds barred type of guy. DON"T MESS WITH LUCIER! He will tell it like it is. He has very good checklists in his books. This is a whole bootcamp in a book. I highly, highly recommend it! I use a lot of his principles in my own Wholesaling Lease Options business. - Joe McCall ([...])



2. I have dabbled with real estate for years usually making good money and sometimes being hammered (like with the last crash in the RE market). But overall RE has been good to me. Be that as it may, I have lost enough to know that I wanted to minimize my risk while still having plenty of upside potential. Real estate options are a vehicle to accomplish this goal. Thus, I started educating myself on the subject and found this most excellent book. Mr. Lucier is thorough and detailed and relates the reality of what it takes to profit (not like some of these dreamweaver real estate gurus who like to sell you on how "easy" it is).
   
   What I am saying is this book is for you if you are truly serious about mastering RE options.
   
   Daniel Hall
   Author & Real Estate Investor
   
   Speakers Cruise Free: The Opportunity To Trade Your Talents For Free Luxury Cruises
   
   Speak On Cruise Ships: 8 Easy Steps To A Lifetime Of Free Luxury Cruises
   
   Erasing Your Criminal Background Legally: The Ultimate Guide To Second Chances



3. I've made it about halfway through this book and had to stop. It was so dull and dry, full of lists of things to do to find and buy Real Estate options. Good information, but dull as could be. It would have been much better had the author included examples of how to go about using the techniques he lists. But once again, the information was good if that's all you're looking for.



4. As a beginner in investing I am at a point where I'm still learning the tricks of the trade. Though this book was infromative I still have to favor the others I have read specifically, "The Pizza Delivery Millionaire"..by Rick Vazquez. It's sold here on Amazon and also on their website for an affordable price..which I think is a great deal if
   
   1. you are intimidated by investing
   2. You want to start investing but have no idea where to start
   
   That book is great!



5. I don't know, I thought this seemed like a great idea. And maybe in some markets it is. In Philadelphia, it's different from the authors home of Florida and I just didn't get anything out of reading this book. When he says options are a little known used RE tool, he ain't lying! After reading Mr. Lucier's book I realized that this was a concept that was completely impractical for me. Some of his stories about finding warehouses that sat vacant for years, cleaning the floor and a coat of pain and voila! $25000 profit, well, they just seem totally out there to me. If you think you can make a go of it, yes, it takes little money but this concept is seldom used and not going to work in many places.

5 comments about Cashing in on Covered Calls. Investing with Stock Options.

1. 2/3rds of this book is a rehash of everything you could get from any other intro to options book. I was dissapointed.
   
   Maybe if it had success stories post 2008 (market crash) it would be worth the while.



2. I rarely write reviews but this book was so terrible it needed to be done. If you have any experience at all do NOT waste your money. If you don't have any experience at all, do NOT waste your money. When someone talks about all the winning trades they make and how they make 3% a month with no draw downs stay away. This book is dangerous if you are a newbie and think you can make the returns this guy says he does consistently every month. Buy Investors business daily, find optionable stocks and play the ones with the best ratings. I summed up the book for you so save your money.



3. I am relatively new to the world of options. After selling a few covered calls on stocks I own and a few I liked, I was interested in finding a better way to locate quality stocks for writing options. That is when I found Alan's book. And it was EXACTLY what I was looking for. Not only did it get me thinking about options in a different way (smaller, steady returns vs looking for the "big catch"), but he details a very straightforward and easy way to find the best of the best in the stock world. After running some paper trades using his system, I have already seen the great potential. This is not a get rich quick scheme. You will not become a millionaire over night. What you will get though is a system that can help you generate steady profits each month while minimizing risk.
   
   I highly recommend this to those just getting into options and even those who are looking for a way to find better quality stocks.



4. In mid 2008 I decided to get to know about the stock market. It was a completly new thing to me. I seriously knew nothing about this, except that it existed. My motivation was 'Have my money work for me, not me work for money'... (I never wanted to be a slave to money, I wanted money to be a slave to me...)
   
   So, this ignited an investigation into the stock market. In the space of 12 months I spent over $5000 on investment seminars, books, home dvd seminars, mentoring ect.. I loved it. I learnt sooo much doing all this.
   
   BUT, I still wasnt satified. Something was missing. I wanted some very specific information. All I knew was 1) The information existed and 2) I hadnt found it- yet.
   
   Looking on Amazon I saw this book was available, but decided not to buy it. I just checked out Alans web site and youtube vids. I even emailed him numerous times each time he have me excellent responses. In the 2-3 months of doing this I learnt allot of things that would have costed $$$ from seminars, ect.. I figured that if I could learn this much from free information, it was worth investing $20...
   
   The book is written very proffesionally. Its not filled with any crazy jargon, making it easy to understand. Alan will walk you through a step by step program that achieves 2 things.
   1) Minimise Risk
   2) Maximise gain
   
   Upon reading the book you will find that you will have the confidence to do these 2 things in the stockmarket.



5. The book on covered calls. No more needs to be said. Buy it if you can.

5 comments about Commodity Options: Trading and Hedging Volatility in the World's Most Lucrative Market.

1. This book is a joke. It explains for pages and pages how commodity options are different to stock options, yet most of its practical examples on(commodity) options relate to the S&P500. Good con, you guys. Hope you sleep well.



2. I have read nearly every option book in print, studied option theory in doctoral asset pricing classes, and hold a Ph.D. in finance. My doctoral dissertation on slippage in the futures markets was sponsored by the Chicago Board of Trade and included analysis of the futures option markets. I am also actively involved in research in the options markets to this day in equities as well. As a researching professor of finance at the Graduate School of Business at the University of Puerto Rico I teach futures, Forex, and option trading in basic, intermediate and advanced derivative classes at the MBA and doctoral levels. Commodity Options is the best book I have ever seen on futures options far surpassing Lawrence G. McMillan's so called "classic" entitled Options as a Strategic Investment. The reason for this is that many option gurus like McMillan lack the experience in the trenches of Paul Brittain. In fact, the real genius of this book is the years of experience, some of it painful, that Mr. Brittain has accrued as a true industry insider and options operator. Some of the warnings about specific futures option positions are beyond the recognition of importance of beginners as Paul Brittain carefully outlines the unique environment of the futures markets, lower liquidity than equities for instance, that lead to problems in employing strategies commonly touted by futures option course, book, and newsletter writers more interested in a fast buck than true and proper education. Hence, if you are a beginner read this book at least five times and take extensive notes.
   
   Not only do I recommend Paul's book but I also know that if you are serious about trading futures you would do well to subscribe to his futures option newsletter "The Optionologist" and should regularly attend Mr. Brittain's webinars at Commodity Trading School.
   
   Prof. Scott Brown, Ph.D.
   Associate Professor of Finance, University of Puerto Rico
   Author, The Worry Free Wealth Guide to Stock Market Investing: FREE BONUS: 7 Hours of Audios! (Volume 1)



3. I agree with both of the dissenting (less than 5 star) reviewers.
   
   This book really offers very little insight into trading the functional differences between underlying stocks and commodities. The examples in the book do use commodities for calculation purposes and this does give the reader some insight into planning trades. But no real substance arises in this book in regard to what the important differences are between trading options on stocks and commodities other than references to the probably more pervasive trading ranges of commodities. This can be summarized in one sentence. It does not take a whole book to make that point.
   
   The vast majority of the material reviews option trading strategies using underlying commodities. In other words, other than using a lot of commodity-based examples, very little if any new information is presented in this book. Seasoned options traders will not gain any new perspectives.
   
   I also agree with the interesting observation by the 1 star reviewer. The 5 star rave reviews have a suspicious similarity.



4. A key reason for buying this book was to understand the difference of trading options on commodities as an underlying asset. In the introduction the authors explains that options on commodities are different than on stocks and therefore strategies that works on stocks might not work as well on commodities. I fully agree, and bought this book to learn more about these differences.
   
   This book walks through a number of different option strategies (all used in the stock market), but fails to explain wherein the different lies between options for stocks or commodities. The authors also claims that selling naked put exposes you to unlimited risk, which is incorrect as a commodity (or stock) can not go lower than zero, so your risk is in fact limited.
   
   If you are new to commodities and options this book is a good introduction to the subject. For more seasoned traders this book offers no new knowledge.



5. So far I love the in-depth explanations of different techniques; as a novice options trader, this really is an "options 101" handbook. Touche.

5 comments about Stock Options for Dummies.

1. This book is a review of employee options. I was hoping for a more comprehensive review that would explain options buying , trading etc.
   It is adequate for the topic of employee options , but nothing else.



2. This book, to me, was completely worthless. I purchased it thinking, like others commenting, that it was about options trading (puts, calls, etc.), not about "employee stock options" (which is what the book should be titled).
   I did read the author's response to criticism about the title, and I think he has some valid points; and in return I would like to sell him a coffee table book entitled "Cats" with a cute little kitten on the front. When he opens it I'm sure he'll be happy to see that it's full of pictures and information about catepiller industrial equipment.
   Also, his argument that anyone who looked at the table of contents would know what the book is about proves that he does not realize who his audience is: This is a "for dummies" book; it should be assumed that the reader knows very little about options. So, how would someone who knows extremely little about options know that chapters entitled "Stock Options: What you need to know right off the bat", Exercising your stock options", and "Finding stock option information online" are not what they are looking for?
   While this book may be very useful for someone wanting information about EMPLOYEE stock options, it was completely worthless to me. Make sure it's what you're looking for before you purchase.



3. This book is aimed at employees elegible to receive stock options in the company they work for from their employer.
   
   It is NOT for investors wishing to buy and sell stock options through a stock broker.



4. First, disregard the 5-star rating. *I* think the book is good of course, but that's not why I'm writing this comment.
   
   To the two recent reviewers who complain that the book isn't about puts and calls but rather about ISOs, NQSOs, etc. - look, I'm sorry for your inconvenience but if you had taken about 2 minutes to skim the table of contents and the editorial review on the amazon.com page ("...your company's stock option plan..."), you would CLEARLY see what type of stock options this book discusses. In fact, taking less time to do so than it took you to write your complaint-reviews and give the book a poor review would have saved each of you $20 or whatever the book cost you.
   
   So my sympathies to you for your misspent $, but come on: blaming the author and publisher for your own haste and, further, feeling the need to do so publicly on an amazon.com review with one- and two-star rankings? (At least the other reader who did the same thing back in August, 2003 had the courtesy to give a 5-star ranking because of the reselling experience on amazon.com to rectify his/her error.)
   
   I sincerely hope that if you do begin to dabble in puts and calls - the other kind of stock options - that you do so with much greater care than you took in making your respective book purchases. Otherwise, you should really think twice about that side of the investing world.
   
   To the one reader who is looking for a beginner's book about the other kind of stock options: see "Futures and Options For Dummies" by Joe Duarte. But do your homework first before buying!



5. I was misled by the title of this book am disappointed. This book is NOT for individuals who want to take their investing to the next level and start trading options on the open market, as I had expected -- rather, it is for people who are offered stock options through their employer.
   
   If anyone knows of a good beginner's book for trading stock options, please clue me in.

4 comments about Option Trading: Pricing and Volatility Strategies and Techniques (Wiley Trading).

1. This is a case where I would have liked to leave a blank rating: I simply don't know enough to grade competently. My problem with this book is that, with a few exceptions (hedging bands of chapter 11; range-based vol estimation), it could have been written twenty-plus years ago, when Black, Scholes, Merton and Rubinstein had published thir papers, and the volatility smile was known but not yet addressed by academics. Academics moved on - have practitioners followed?
   
   If yes, I would penalize the book for being out-of-date and not 'fessing up to it. I would have been quite receptive to an argument that the main ideas can be demonstrated in the oldest, fundamental model, but the more recent stuff really needs to be in the book as well.
   
   If not, no complaints, apart from insisting on more substantial chapters 9 and 11. Once we emerge from textbook options stuff after chapter 8 - including the titular "strategies", in chapter 6 - there are only four chapters left, and one is taken up by textbook-again discussion of market-making. Less of familiar material, more of your thoughts, please.
   
   This is a thorough and well-written discussion of options in the Black-Scholes world. (This means European equity options - no American options or exotics, no fixed-income etc.) 85% of the material was not new to me, and seen in Hull, and CFA and FRM curricula. I would wish to check if the remaining 15% had shown up in similar books, but even in that case the author deserves credit for bringing it all together, and first-rate presentation throughout. If one is looking for a comprehensive introductory-to-intermediate book on options, this is a reliable choice.



2. Simply put: Too much theory and not enough practical advice. Like many other books the author is more interested in imparting a lot of "gee whiz' type information than telling how he really makes money. I have a whole shelf full of books on this topic, most of which follow this same principal. I was going to return the book but decided to re-read it at a later time.



3. Euan Sinclair has written a wonderful book on Options. It covers all the basics of (Equity) Options valuation and trading- peppered with deep insights. As expected there is some overlap with his other book- Volatility trading.
   
   Two thumbs up!



4. My friends and I were really surprised reading his first book.. "Hey, wait, this trading book doesn't suck. The author actually has a clue." He repeats here, but at a more accessible level for most people.
   
   If I were running an options desk, this would be the intro course for every new member. Even it's asides on non-options markets are better than almost any other book you'll find.