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

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



2. 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.



3. Ronald Groenke rightfully stresses the importance of cash flow but he understates the risks involved. This is a book written for option beginners and, as such, a little more emphasis on the risk involved would be appropriate. The book is mostly about covered calls and while there is not much additional risk in selling covered calls there is an important trade-off that should be considered. When you sell covered calls you give up the possibility of a Peter Lynch style multi-bagger replacing it with an income stream.
   
   There is not much discussion about selling naked puts but if they are suggested it should be made clear that they are a lot more risky than covered calls. The first caveat is that unless you are called Warren Buffett you have secure the puts. The puts are "naked" in that they are not covered by stock short sales but they are secured with cash or margin. On page 54 Groenke says: "And you get paid up front when you sell a Call or a Put. That money is yours no matter what." This not true for puts, the premium you get plus another amount is retained by the broker as a guarantee against being assigned. If assigned, that money goes to pay the shares you are buying.
   
   Groenke also overstates the income you get from the puts. In effect he ignores the amount of money you put at risk when selling the naked put which is the strike price less the premium you receive. From page 43: Jake asks "With Career Education you sold numerous Puts and they expired. How would you computer your return on that?" to which Graham replies: "Perhaps with the potential investment of an assigned put." That is the correct answer but that is not how he computes the rates of return on the puts. On page 45 there is the case for Plexus which shows a gain of 9.96% based on $17.604.50 invested in 800 shares at $22.00. But the total amount of money put at risk is $17.604.50 for the shares and $19,462.02 for the puts, $20,000 strike less $537.98 premium received. Using $37,066.52 as your base, the return is only 4.84%. My calculation assumes that the stock goes to zero and while that is not likely, had you invested in Lehman Bros. or Enron, well...
   
   I bought the book because I too like selling covered calls and cash (margin) secured naked puts. Frankly the story of Jake and his professor is a bit corny but don't let that put you off, it helps pace the real stuff. One reviewer complained that the book is really an infomercial, which it is. One of the big difficulties in investing is finding stocks to invest in, one should have an inventory of potential candidates. If the software Groenke has for sale, which I have not tested, lives up to what he claims for it, then it makes a lot of sense for him to offer that software and explain what it does. A lot of books are long on theory and short on practice. Show Me the Money is short on theory but, with the help of the software, long on practicality.
   
   As a closing comment, if you are going to sell naked puts, make sure not to overextend your margin, the money you got for the puts has not been earned until either the puts are bought back or they expire worthless.



4. I bought this book based on all the glowing reviews. I was very disappointed with the contents that in my opinion are below what even a beginner needs to learn to trade options successfully. I guess I should have noticed two facts that could have clued me in (1) This is a rewrite of an earlier book Covered Calls and Naked Puts: Create Your Own Stock Options Money Tree. with less than 30 pages added to it . I believe the earlier book had one star reviews more reflective of its contents as well as the contents of this book and (2) More than 20 of the 26 , five star reviews only reviewed this book. Yes it's possible that some do review only one book but that high of a percentage is quite strange.



5. The first few pages are an advertisement for his website/software and I knew right away it was going to be "another one of those books." I love reading stock books though, so I chose not to judge a book by its cover or by the first few pages. It didn't get better... It was basically an infomercial, literally; it even had fake characters telling their story. The story is about a couple and their rich friends and in the beginning of the book the character even thinks to himself, "Hmm... I wonder which one of my rich friends that new bentley belongs too" (not literally word-for-word but that is the basic idea. From the title "Show Me the Money" I was expecting an advertisement, but like I said, I dont judge books by their cover. I feel like my intelligence has been insulted. Let me get one thing clear: selling monthly options IS a good strategy and that is why I bought this book - I wanted to learn more about the strategy, but this book quickly ended up in my garbage can. If you want to learn about selling options then I encourage you to keep researching, however, save yourself the time and try other books first.

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

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



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



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



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



5. Dr. Alexander Elder, after writing Trading for a Living, takes readers to the next level and teaches them about selling and short-selling. Before doing so, he covers the topic of how to buy because according to the author, you have to buy well in order to sell well.
   
   The book is organized in a way where the author writes approximately one page about a subject, then asks many multiple choice questions. The second half of the book is dedicated to answering those questions, and that's where the bulk of information is provided. For some this type of organization may not work because it feels like being back in school studying for an ACT or SAT. But besides that, the book is excellent.
   
   - Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

5 comments about Candlestick and Pivot Point Trading Triggers + CD-ROM: Setups for Stock, Forex, and Futures Markets.

1. I've invested on and off for years, and wanted to try my hand at day trading stocks and ETFs, so I went looking for a trading system that would work for me. This book delivered for the most part. So why only 3 stars?
   
   On the plus side, the author's system relies heavily on only a small number of candlestick formations and technical indicators to do the heavy lifting, and I'm a big believer in the KISS principle. And he includes tons of real chart snippets along the way to exemplify every aspect of his system. I found that adhering strictly to the prescribed candle and technical confirmation triggers enabled me to make good trade entries almost immediately. That in itself makes me glad I read this work.
   
   But there are some negatives. I found myself re-reading a page occasionally to gain understanding, not due to techno-market esoterica, but because it was not well written. I regret that I never did totally extract an understanding of the author's system for setting trailing stops. I wondered if the book was proof read. The pivot point portion of the system, though fairly easy to understand, is virtually impossible to implement/use without the right software package (which the author promotes randomly throughout the book).



2. This is the second of John Person's works I have read. He provides a unique and very well thought out strategy for trading using pivot points. He does an excellent job providing useful examples of each element of the strategy. To many traders, the material presented will be a completly new approach. To gain the most value from this book I would recommend you also read his prior book as well. My only dissapointment was with the quality of the editing by the publisher. There were more than a few errors and typos in the book which is a distraction from the fine work the author presents. Don't let the few editing errors detract from the value of the material presented. John does a great job showing how to trade with pivots, what to focus on, and how to increase your odds of success by focusing on the convergence of multiple time period Pivot Points. I thoroughly enjoyed this book.



3. Book is well written, author language is clear and understandable but...
   
   I struggle to manage to make the system described in this book to work for me. I don't have the charting package and software that author use, but the system should work on any system. The only problem is that if you
   dont have the software that author use - you can't use moving averages.
   
   I will give this system few more attempts and I will update this review later.
   
   Don't use the system described in the book without testing. Losses that I have with this system are virtual. But the waiste of the time is real.



4. I really like the combination of candle sticks with pivot points! Candles are fine but must be combines with other western technicals. I like this as a constant combination. You can then add MACD or ADX to finetune your timing. I learned a lot from Person.
   
   My only reason for not giving it 5 stars is that it has a lot of filler. Gives the book a bit of bulk but not much meat. A good edit would have made for an easier read.



5. This is an exceptionaly well written book. Not only is the reader introduced to a new concept of Pivot Points, but also the combination of using Candlestick charting and special Moving averages gives a very powerful trading platform. John Person has taken a lot of effort to explain all details of his trading platform, but what is more than unusual in books like these, is that he gives dozens of examples with very detailed explanations. This is something rare, but allows the reader to fully understand the theory not only in written words but in live examples down to the last detail.
   This book is a must reader for all Traders whether professional or not, as it is an eye opener into a very powerful platform. Even taking parts of this platform into ones own trading systems can be very beneficial. All Kudus to John Persons latest book.

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

1. I absolutely love this book.I received it within a week of ordering it. I ordered it directly from Wendy's office in Michigan. I read the book within 24 hours, and that was with me reading slow. Once i started reading it, i found it hard to put it down. The book instructs you as if you are a total novice to the world of real estate investing and i liked that. I will be ordering additional products from Wendy's office very soon.



2. A must read if you are planning on getting into this area of investing. Author is alos highlighted in Gary Kellers Millionaire Real Estate Investor.



3. I had a chance to hear Patton speak at a seminar several years ago and she is fabulous. She really knows what she is talking about. In this book, she shows you how to make money in real estate with lease options and subject-tos by acquiring or controlling properties. Some of you might not know that you can actually make money in real estate without ever owning it. For example, the author says that money in real estate is made by controlling property, and owning is just the most obvious way to control it. But you can control it without owning it. The author also sells training seminars I have heard good things about them.
   
   - Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market



4. I'm glad I bought this book from Wendy Patton. She mailed it to me herself! It was a good price, lower than other sellers, and I enjoy reading it. She wrote it neatly and legibly, very easy to understand, it teaches you step by step how to do lease options and subject-to deals. I'm still digesting it but I'm sure once I master this book, I'll be able to work it out and make some deals in the real estate market. Thank you Wendy for a great guide! It supercedes any class I would have taken for hundreds of $$$ (i.e., at Trump University...)



5. I've been studying real estate investing for about 5 months. This is a great book about lease options and S-2. These strategies seem to be good choices for someone starting out or for seasoned investors. The book was well written and easy to understand. I thought it could have went into a bit more detail on some things, but it is a great primer. Any new investor is going to need contacts to get going, so reading a few books like this, join some groups locally and online, and you're on your way.
   Towards the end of the book she pushes her other products, such as the boot camp and cd's. I think is fine since there is no way all that material could fit into this book. I still think you could read this and get some advice from other investors to get deals completed.

5 comments about The Options Workbook: Fundamental Spread Concepts and Strategies for Investors and Traders, 3rd Edition.

1. Great Exercises in each chapter and test at the end of each chapter to ensure you are understanding this somewhat tricky topic. Well written and organized.



2. Content of book is good. Am questioning if there are some erratas in it though. I'll figure out by the end of the book.
   
   Major drawback is the softcover is starting to release the pages and it has not been treated badly. Possibly a poor binding job.



3. I am new to trading commodity options. Although the book primarily talks about stock options, the rules and strategies are the same for all options, stock or commodity. The examples and tests with answers are easy to follow. This is an excellent book for learning strategies in options trading.



4. Saliba describes each of his fundamental spread concepts and strategies in plain simple english, yet so concise, almost skeletal with such verve that I decided to construct a wall chart reflecting its contents.
   
   The wall chart now sits proudly on my wall ( in the presence of 3 other wall charts ) and shows the 7 categories of option strategies - Synthetics, Insurance, Directional/Neutral, Directional, Either Direction, Non Directional and Volatility and their sub categories etc.
   
   For this reason I think that Salibas book is perfect for the beginner.



5. Haven't been able to put it down.The questions after each chapter really help you make sure you get the info.I can't wait to finish the rest of the book.The author has a great way to simplify the information.

5 comments about Futures & Options For Dummies.

1. This book is what I was looking for. I wanted to get a no-pressure education on the options trading processes. This book does the job in a user-friendly easy to understand style. Does it better than some other stuff I've tried. I recommend it.



2. I'm new to options so this seemed to be a good place to start and some of the information was helpful but when I found a glaring mistake on page 75 I lost faith in the book and won't finish it. An example is given of a covered call that is supposed to make $500 or 10% but it actually looses you money with commissions..Read at you own risk



3. This isn't what you expect from the "For Dummies" series. Meaning you don't close the book feeling you can get started with confidence (unlike, say, Currency Trading for Dummies, after which you can do just that). Overall it's a useful primer but nothing more. Its strengths are some macroeconomic insights and occasional tips on how the big players play the game. It is average in terms of giving the basics on calls and puts and basic spreads, and it gives the usual overview of charting and technical analysis. The three main weaknesses are: 1) An overemphasis on using historical charts to show where you could have bought and sold based entirely on 20/20 hindsight; 2) Trying to cram in too many subjects in the second half of the book, offering brief intros with very few insights but what feels like at least 2 warning per page on "Don't forget there is risk involved" and "Moves can be huge and reversals are unexpected;" 3) An absence of an overview of the tools and software available. This last is the clincher why I gave it only 2 stars. Because trading in futures is considered the big league (and rightly so, because there IS huge risk involved), the best softwares cost money and are sold business to business. It is still not considered the realm of the burgeoning individual speculator. For internet software, well for any software, you need to have a simulation so you are expert in the workings of the software before trying to trade real time- imagine losing thousands of dollars because you don't understand how to correctly set up your spread in the software!
   If software does include a simulation package for evaluation, it is likely using simulated data. The better software packages that offer simulation for options will balk at futures and tell you you need to be approved for a futures account, in other words you need to commit before seeing it. This current grey area for individual speculation is to be expected, but that's why I bought the book, hoping it would bridge those gaps. It did not.



4. I found the book way too cumbersome. The author tries to write about everything financial and as a result does it very poorly.
   
   I found the section on Options especially weak. He's taken a straight forward subject and made it seem more complicated.
   
   Pass on this one!



5. If you're new to options, this is _the_ book to start with. Surely, online resources are plentiful, but no single web site can give you all the information and explanations you need to really get a good grasp on whqat exactly might be happenning. I've already made some money in options but, believe it or not, I've made more in stocks because I didn't quite grasp how these things work. This said, if you understand options and have a good idea of how the underlying (stock) is going to perform you can see your option appreciate 20, 50, or even 100 plus percent in a very short time. This is the draw of options. The most important thing you need to know, however, and this is 'experience' speaking, is that you have to, i mean, have to reel in your money if you see so much as 5 or 10 cent markdown in the price of your option. Why? because, unlike stocks, you can always buy right back in if the thing does start going your way With stocks, you usually hold it until you see , say, an 8% depreciation in value. This is not true with options. If you have, say, ten contracts, you're leveraging 1000 shares. Thus, if your thing goes down 5 cents, you've lost 50 dollars; 10 cents, 100 dollars and this usually happens intra-day, within a few minutes. For this reason, options are classified as 'high risk', but it's only high risk if you're averse to gettting rid of them. Stocks might take 2 or 3 or 5 days or more to show such a drop; that's when you might sell. Oh, and one more thing...having the right software makes or breaks your trading. Schwab offers options, but not any kind of software that gives you all the information and tools you need. Check around; there's a few that offer killer stuff. Visit investools.com
   I hope this helps future traders but, if you must know, you gotta digest all the info in the options part if you're to get a grip on the thing.

5 comments about The Complete Guide to Investing in Short Term Trading: How to Earn High Rates of Returns Safely.

1. First of all, this book was easy to read, understand, and had some really good points. It is a general overview of many aspects of trading and an excellent book for beginners to read. I really enjoyed how the author started off the book with an introduction to the two monsters that eat traders alive: FEAR and GREED. It includes the psychological side of trading, includes an overview of different markets to trade, examples of entry and exits with sections on technical analysis. Overall, a good read for the beginner.
   
   Like some of the other reviews, I agree that there isn't a lot of advanced material in here and if you have been trading for a while, you may not have learned much and may not benefit from reading this book. But if you are just getting started in trading, I think you'll like this one.
   
   If you are a beginner, I would suggest the book, "How to Make Money in Stocks: A Winning System in Good Times and Bad, 4th Edition" over this book. It goes a little more in depth and includes a lot of good material that every trader should know.
   
   In conclusion, I give this book 4 stars because it is a nicely written, easy to understand introduction to trading. If you've been trading for a while and are looking for a book to build upon the knowledge you already know, then I would avoid this book. In fact, if the title of this book included the word "advanced", I probably would have given it 2 stars.



2. Publication is easy enough to read and comprehend. However the content is lightweight and merely reproduces material found in greater depth in other books on the subject.
   
   If you have never read any other books on the subject it would be a reasonable starting point. For someone with a good understanding of the subject it is short on substance.



3. I purchased this book a few days ago, haven't finished reading it yet but I like it so far. It is a very good guide if you want to know how to do short term trading and it talks about those feelings that you have to control when buying stock of a company, sometimes you are caught by greed and the hope to make too much too soon and off course you want to make lots of money but it's important to be cautious too and not just bet your money in any company out there, but make informed decisions based on the fundamentals of the company and also the technical which is the part I'm trying to learn because I've always liked to look at the fundamentals only. I basically recommend this book to anyone willing to learn about trading.



4. "Complete guide to investing" my foot. This book is a complete waste of time and money. The author has many words but very little to say. After reading this book, you'll be back to square one; where you started, not knowing anything substantial. If you want to learn something/anything about investing, please look for another book. This book offers nothing. You might as well get a software and start dabbling in the market yourself. That's the long and short of this whole book. Mine is going straight to the gabbage.



5. This book is a very basic book about trading. If you have traded for 3 months or more, many of things pointed out in this book, you will already know.
   
   I've read many books about trading. This quite possibly might be the worst one of the bunch. Its very basic. Things that were covered, full service, web based and direct access brokers. Most of the major indicators were covered by the author. This information can be found anywhere on the web.
   
   As I was reading this book, I kept waiting for the author to get into the nuts and bolts about short term trading. I waited and it never came. This book is very "generalized".
   
   I gave it one star on the review but would have gave it a 1/2 star if I had that option. I would ask for a refund, if I could.

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

1. 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.



2. 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.



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



4. 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. Bottom line: If you want to trade options, or are already trading options and you are not an expert, buy this book, and read it carefully.
   
   I have looked at lots of option trading books, and bough and read a few, not to mention looking at MANY websites and even taking a personalized Option trading course.
   
   This is, beyond doubt, one of the best and most useful I've seen.
   
   Aside from the usual basic information which is a must-have in a book aimed at non-experts, which is done an a good, efficient manner, this book really shines in covering positions adjustments and discussing their plus and minus implications. Where "adjustments" are follow-on-trades to be done after you open a position, and then the stock behaves as expected, or behaves opposite to as expected.
   
   In this respect, this book is almost alone in explaining what to do, and the implications of the action.
   
   My one quibble is that a lot of the worked-examples are done in text, mostly, where a table-form or flow-chart presentation would be better, I think.
   
   That said, I HIGHLY recommend 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.

5 comments about Trading Natural Gas: Cash, Futures, Options and Swaps.

1. I've spent time trading bonds for a corporate industrial company and needed a resource to understand the natural gas market. I found this book to be an outstanding overview of the trading process, trading jargon and hedging strategies. This book is generally written for someone who is (or hopes to be) an employee of a natural gas marketing/trading company. It is not written for the individual investor who is looking to open up a commodity trading account online. Having said that, I don't think that the book is a waste of time for the individual investor. It is very informative and complex trades are flowcharted for the visual learner. I feel that this book is a "must read" for anyone interested in working on the gas trading desk at a marketing/trading company.



2. I work in a gas trading software company and this is a good book to read to learn the business. Just wish there is more detail info on the different types of trades out there.



3. provides a very good basic understanding of how gas is traded.
   just enough technical detail to be useful, without getting into the "Greeks" of determining option value.



4. The principles of gas trading laid out clearly and concisely. Perfect for my needs.



5. Even if you do not have a solid understanding of derivatives, this book is really good explaining step by step how the different derivatives are used for hedging natural gas; regardless if you are the producer, trader, or end user. The author gives many examples of how each derivative works. I highly recommend this book if you are starting out as a junior trader, risk products trader, supply planner, etc.