2 comments about Merger Arbitrage: How to Profit from Event-Driven Arbitrage (Wiley Finance).

1. I just finished reading the Merger Arbitrage book by Thomas Kirchner and I really enjoyed it. Mr. Krichner's book broke down the philosophy and process behind investing in mergers in a simple and concise way so that anyone can understand how merger arbitrage works. The book has detailed examples of past mergers which really help to illustrate how mergers operate and how to take advantage of them. The book also talks about risks involved with mergers and explains how some risks really aren't that bad considering the potential up side for merger arbitrage strategies.
   
   My favorite part of the book was chapter 12 which talked about how merger arbitrage strategies complement traditional investment strategies. Mr. Kirchner pointed out simple benefits such as diversification of risk and return streams as basic reasons to incorporate a merger arbitrage strategy into traditional investment strategies and he backs up his claims with data that shows exactly what he is talking about.
   
   Overall I would recommend this book to any person who wants to learn more about investing. The book caters to any level of investor and it has great examples which really help out!



2. Merger Arbitrage is informative and engaging and if you like finance and investing you will love this book, even if you haven't spent more than five minutes in your life thinking about mergers & acquisitions. A more descriptive title might have been 99 Mergers because that's essentially what the book is, the definitive collection of mergers and what we can learn from each one.
   
   There are hostile takeovers, management buyouts, bidding wars, busted mergers, spinoffs, proxy wars, insider scams, activist shareholders, private equity kings, anti-trust suits, appraisal actions, and a few other situations that you've never thought of but should know about because let's face it, anything can and does happen in the financial markets.
   
   It is a fun and informative read and Kirchner includes enough statistics to let us see the big picture, for example what mergers are more likely to succeed and why, both for firms and investors. It is also pro-shareholder and pro-investor and rightfully skeptical about both Wall Street (including private equity) and management. I still have one chapter to go in the book but am already recommending it to my friends and colleagues who have an interest in the markets.

5 comments about An Introduction to Derivatives and Risk Management (with Stock-Trak Coupon).

1. This book is not for the derivatives practitioner, rather it is for the for the general business practitioner who doesn't want to sound stupid at the board meting. This book should not be used to teach even the most basic of derivatives classes. This book will give you a general understanding of the terminology and BASIC logic of derivatives. The mathematics and logic behind derivatives is not simple and should not be omitted from a derivatives book. Do yourself a favor and learn the math and logic, and the fundamentals of derivatives, concurrently. I would venture to guess that if enough people apply that which they learn from this book, and only that which they learn from this book, the economy will be in for a major disaster.



2. Saved a whole lot of money by buying this book online as opposed to the university store. no complaints at all



3. I dislike Don Chance both as a person and as a writer. I find him arrogant and intolerable and that bleeds through into his writing. So, yes, I am biased.
   I highly recommend instead that you seek out John Hull, a much better author, he has two books; one for undergrad and another for grad (which is the 'bible' on this subject).



4. Dr. Chance did a excellent job in carefully introducing the concept and outline of derivatives markets to students with basic business school training. I used the 4th edition in my undergraduate course couple years ago, and built up a solid conceptual understanding in this field. The newest version still keep its pleasant style and contain some thing more about risk management.
   This book offers the best introduction to undergraduate business school students or MBA student who need not to work with financial derivatives much.
   But for those non-business students wants get into mathematical finance industry, to buy a book only for concept intro may not a economy choice. Refer this book if you find the first half in Hull's "Option, futures and other derivatives" not clear enough.



5. If you are a student just taken up a course in derivatives or risk management you should have this book. if you find john hull more technical, you have Don Chance who covers options and other derivatives in a greater detail and in more words. everything you want to know about how banks etc have risk mangaement systems in place and market risk instruments is here.

   in case you want a greater coverage of options and pricing options, you should definatly take a look at Black Scholes and Beyond by Neil Chriss, a work of art.

5 comments about Spread Trading: An Introduction to Trading Options in Nine Simple Steps (Wiley Trading).

1. The Spread Trading words should be removed from the book title. You will not find much about spreads in this book, just few last chapters covering the very basics of spreads. The book is very basic and written in forms of dialogues between Lon & Shorty and other characters-like children book, which was very annoying to me. There is only theory, the very basics of options with no real trade examples, graphs etc... And there is very little and very basics about the spread trading. Do not expect to learn more then very basics of options from this book. The book should be put in teenagers section and priced accordingly. I felt like one while reading this book. If you want short and good intro to options I'd suggest Trading Stock Options by Brian Burns which is very well written with plenty of paper trade and real trade examples.



2. What this book does, it does very well indeed. And what it does is offer a relatively painless, yet accurate, introduction to option trading. But it's only a introduction. By no means does it equip the reader to go out and start trading options. There's more, much, much more, to the story than you'll learn in this book.
   
   There are several phases to option study, even before one begins to do paper trades. First of all, you've got to learn the terminology and the fundamentals. This book handles this very well. The author, unlike most who want to be teachers, remembers what it's like to be a student. Most "beginner's" books out there fall short because much of the time the author is talking to himself. Being able to hypothetically "forget" what you know and retrace the steps you took to get where you are is a rare skill, and one that few can master. There's a profound difference between knowing-how and knowing-that. It's much like learning a new language. A native speaker of French, for example, may know very little of French grammar, but he has a "feel" for his native tongue that a non-native speaker will never have, or, at best, will acquire only with much experience. The learner must rely on various "crutches"--like grammar books and various other teaching aids. The same is true of option trading, or any other skill. This book introduces and uses such crutches very skilfully, so that you don't even know you're using them.
   
   The second phase of learning options is learning the basic strategies. In order to do this well, you MUST learn how to construct a graph which shows the position of the option trader at expiration. And in order to do this, you MUST know how to construct a profit-loss chart. The profit-loss chart defines an option position. Once you have the chart, you can easily construct the graph. There are six basic moves in options trading, and any strategy, however complex, comprises one or more of them: long stock, short stock, long call, short call, long put, short put. When you open an option position, your profit-loss chart will include one or more of these basic moves, and define it for the facts you are given.
   
   The third phase of learning options assumes you know the basic moves, and shows how they are combined into more complex strategies. To do this, you must learn basic synthetics, the put-call parity equation, maximum profit and loss, and several other concepts. And again, this presupposes that you know how to construct the profit-loss chart and from it, the graph for a given strategy. At this point, you'll need to learn how to read option chains. Once you have a sound understand of synthetic positions, you can learn strategies such as covered calls, vertical spreads, and collars.
   
   Now, before you go any farther, you enter the fourth phase, which is risk management, which is arguably THE MOST IMPORTANT part of options trading. Without a solid understanding of it, you will lose your shirt if you start doing live trades. If you do understand it, you'll have losses, but they probably won't empty your account. Risk management includes learning the option Greeks and volatility, the use of stop orders (if you think you need them), and chart reading (technical analysis), which, in the context of options trading, is one tool in your risk-management toolbox. For this knowledge, I've relied on the Pristine method, which has the advantage of simplifying what many others delight in making difficult. One good thing about options trading is that you don't always have to be right on the direction of the underlying instrument, but it doesn't hurt to be right. If you're long, say, 100 shares of XYZ stock at 50, and the stock price goes above 50, you make money. If it falls below 50, you lose money. Option trading, once you understand certain strategies, opens a "window," a range of prices of the underlying stock, and if the latter stays within that range, you're good.
   
   The fifth phase is learning how to actually place a trade. This means learning how to read bid and ask prices, and learning how market makers think. When you move out into the real world to trade, keep in mind that although you're probably sitting at your computer, you're not trading with a machine. If you're buying, there are real people selling, and if you're selling, there are real people buying. And they don't want to lose money any more than you do. They want to make money, just as you do. Part of placing a trade is learning how to use an actual trade platform. I use Think-or-Swim which, for option trading, is very hard to improve upon. Once you've mastered the concepts in the first four phases of your study, you'll find a wealth of information at their site to enhance your knowledge. And their tutorials will literally walk you through the platform, which, if you're new to trading platforms, can be a daunting experience.
   
   The sixth phase is paper trading. If you've ever taken a serious exam, you know the value of doing practice exams ahead of time. You know that IF YOU DON'T HAVE THE KNOWLEDGE AND SKILLS TO PASS THE PRACTICE EXAM, YOU WON'T HAVE THE KNOWLEDGE AND SKILLS TO PASS THE REAL ONE. The same is true of placing option trades (or any other kind of trades). When you've applied what you've learned doing paper trades, and have a consistent record of wins and losses that you can live with, only then should you start doing live trades. Now, I'd like to tell you that doing live trades is just like doing paper trades, but I can't, because it's not. There's a different sense of reality when your own, real money is on the line. You can paper trade monopoly money all day long, and if you lose, you won't take it too seriously (although you should).
   
   For the first phase, I would recommend the book I'm reviewing, "Spread Trading." It will take you through the basics, and even introduce you to some more advanced concepts, such as the Greek delta, volatility, and the four vertical-spread strategies. But again I emphasize, you're only being introduced to them; the author's coverage will make it easier for you to study the real stuff. One great strength of the book is that you learn early on how to read option chains. When you encounter them again later in your study, you'll find it a breeze. What the book doesn't cover at all is the essential profit-loss charts. And again, unless you know how to put them together and take them apart, you won't be prepared for more in-depth study of the elements of risk management.
   
   For the second and third phases, I would recommend the book "Options for the Stock Investor" by James Bittman. As I mentioned in my review of that book, the second chapter, "How Options Work," will give you a solid understanding of profit-loss charts and graphs, and is itself worth the price of the book. For the fourth phase, I recommend "Trading the Option Greeks" by Dan Passarelli. I recently met him and listened to him lecture at an options expo in Las Vegas, and I must say that his approach is not only at a level of sophistication that you'll need for real-life trading, but he's also a fine teacher. For the fifth phase, I recommend "Trading Options as a Professional" by James Bittman. This book also covers phase 4 stuff very well, and you can integrate it with what you're learning from Passarelli. For the sixth phase, go to the Think-or-Swim web site, and download the software. It's now time for you to learn how to use the platform and begin paper trading. And their paper trading function is among the best out there. They also sponsor Option Planet, which consists of free lectures given at various times in different cities, and usually last six hours. Once you've gone through five of the six phases I've outlined, you'll be a very good position to benefit from these lectures. The people from Think-or-Swim are all pros, and they don't waste a lot of time explaining the rudiments. Even their most basic Option Planet seminar jumps in on the deep end.
   
   All of this may seem tedious, and some will argue that you don't have to be so systematic in order to learn options trading. Among them are (1) those who have already mastered the art, and have forgotten what it's like to be a beginner; and (2) those who don't know what they're talking about. In truth, there are no shortcuts in learning how to trade options (or anything else, for that matter). One way or the other, you'll pay. Either you'll pay the price in time spent studying and practicing, or you'll pay the market in losses. And once you're account is depleted, your trading career is over. When your own money is at stake, then if option trading is worth doing at all, it's worth doing right. And again, a very good place to start is with the book "Spread Trading."



3. Greg Jensen takes material that is complex and no one can say that spread trading is anything but yet he presents it in a clear and concise manner using Lon and Shorty (Long and Short) as his two main characters so it tells a story and a good one at that. I have read it cover to cover and am now going back and forth through the book as it is great material presented in a easy to read method that makes you want to take your paper trading to the next level. Remember practice practice practice before you trade real $$$$$



4. This was the first book I've read on option trading and I can't say enough good things about it! Options have always intimidated me, but after reading even the first half of this book I realize it's not as difficult as I once thought. The book is well writeen and includes reviews, questions and summaries to keep the reader engaged and putting into practice the content being taught. Two thumbs up go out to Greg Jensen for taking something perceived as being very difficut and making it easily understood for all who care to know!



5. As someone who has read a great deal of options trading material, this book definitely stands out above the rest. By covering complex terminology and concepts in story format, Spread Trading delivers a unique reading experience for beginners. This book avoids the oft-repeated pitfall of many authors and instructors who try to teach options to those who are new: they have forgotten what it is like to be a beginner. The need-to-know material has been presented in a clear, easy to understand manner. I highly recommend this book to those looking for an introduction to options.

1 comments about An Applied Course in Real Options Valuation.

1. I took Dr.Shockley's RO course back in school. Dr Shockley's approach to the subject is radically different from any other book I have seen. He's actually taken the time to explain the various models and concepts in finance come together. The approach to options doesn't start with heavy derivations and equations of stochastic processes - it starts with the concepts of NPV, abritrage and leads on to options (and real options). The book is full of handy examples and solid explanations. Pick up any standard text in microeconomics (Silberberg, or Hirshleifer or Henderson and Quandt)- and you will see the one equation repeat over and over again - the First Order Condition tying in the ratio of Marginal Quantities (Costs, Utilities etc), the ratio of prices (wages etc) and the lagrangian multiplier. If finance is related to micro economics, one expects to see atleast one instance of this equation in a standard finance text. I haven't found it any - Dr Shockley's book was the first one I found that tied what we're doing in finance to the underlying concept of equilibrium as defined in microeconomics. Fama's theory of finance is the only other book (that I've looked at) that starts finance where micro left off, but then who has the time or strength to read it after a 10 hour day.
   In future editions of this book, I would love to see some development of stochastic processes, the concept of filtrations, Ito's Lemma etc. Dr S can write on this subject at the level that is deeper (and more satisfying) than Wilmott, and more easy to access than say Shimko or Shreve or even Baxter. I think that will add to the value of the book - it can be the gentle introduction to some more advanced concepts, for students and busy practitioners who have very little time (even if they like it) for the math that one sees in some of the advanced derivatives book.
   
   Thanks for putting this book together Dr Shockley!

5 comments about Options Trading: The Hidden Reality ("Options: Perception and Deception" & "Coulda Woulda Shoulda" revised & expanded, Printed in Color).

1. After 3 full-time years(of 13 yrs investing) of studying, extremely frustrating full-time study and searching, as a trading student, I found this book "OPTIONS TRADING: THE HIDDEN REALITY" by Charles Cottle. This guy seems a little like a saviour to me, [he cleared the confusing fog and fears supporting my uncertainty] after putting so much trust in other highly rated books and programs. I had hoped the other authors would have had the same skills, insights and experiences (credentials) this man, and his team, actually possess and demonstrate!
   
   I nominate the RISK DOCTOR as "KING OF OPTIONS EDUCATION"! I think!: This book will become THE "options trading BIBLE"! (Out of 60+ best options books, DVDs & reports I've reviewed. This review is obviously over the top, but I love the way his materials are engineered, they deliver, BIG TIME!)
   
   1. He has trained 1,000's of options market makers all over the world - very few have the multi-levels of experiences to handle those challenges! The RISK DOCTOR TEAM, of retired floor traders, have been where few others have. Plus, they're still consultants to the professional traders.
   
   2. His years of experiences as a successful market maker at CME (futures) and CBOE (equity derivatives) supplied his unique insights, and qualifications as a market maker teacher, and now as a retail trading teacher.
   
   3. He developed "CUP of Synthetics", "OPTIONS METAMORPHOSIS" and other "proprietary" tools (like DIAMONETRICS) to help us cut the hassles and wasted time out of our options analysis, chart analysis and risks analysis, their POTENT, check'em out! With these tools, I'm becoming more resourceful!
   
   The RISK DOCTORs proprietary set of tools, for education in risk analysis, helps you make rapid, on the spot, risks analysis and costs evaluations in seconds (without depending on software)! If your gonna trade options, don't pass this book by, it's worth it's weight in GOLD!
   
   4. He developed the "most potent" set of retail traders educational materials in existance. Reading and learning and communications with the RISK DOCTOR has effectively cleared up my confusions, fearful uncertainties from too much conflicting information overload.
   
   5. He demonstrates qualities of character on the phone you'd expect from a master of options. He'll help you see inside of risks, like covered calls (most popular strategy) risk profiles, like no one else mentioned before(Their equivalent to a "naked put" risks, I've never new that). He says, "don't take my word for it, prove it, here's how", and he can prove it! Only two other teachers ever said that before!
   
   If you don't believe me, visit [...] and read some of the comments, and listen to some of the free videos. OT:THR is where I wish I had started, it would have saved me a ton of money($10-12k), frustrations, and disappointments(4-5,000 wasted hours of study) because it's so far ahead of everything else in the options risks education universe.
   
   I sure got surprised by the content, by his perceptions, and then depressed while discovering this guy has been available to retail traders since 2001! This new updated book is recent though, so I couldn't find and evaluate it before last year. I failed to search in the right places. Like Charles told me in an e-mail yesterday "better late than never"!
   
   After reading the book, you've got to watch FOO(Foundation of Options), which you can find at [...] , the next one I'm working on is OPTIONS METAMORPHOSIS. OTTHR covers more ground, more effectively than any book or program I've read, or watched in 5-6,000 hrs, covering everything I had curiosities about in equities, currencies and options.
   
   
   No longer confused and frustrated in Okc



2. When you start reading about option trading, the first few books you run into seem to be so enlightening that you generously give them a 4-5 star evaluation on Amazon.
   Then, as soon as it becomes visible to you that the "get rich quick" paradigm does not apply to options, you learn to better select your favourite authors.
   Finally, you shore to Charles Cottle's book(s) and, despite you 3+ year studies in options, you start to question yourself whether the study efforts you spent until then were worth their while.
   This book is neither an easy read, nor a quick recipe to master options. It is a book that deserves study, hard study, no shortcuts, as Charles himself wrote in his dedication on my own book when I visited him in his office in Chicago.
   The author starts giving the reader a very fresh (unique, as far as my experience goes) perspective about option positions analysis through the so called "dissection" aimed to alter the trader's perception of his position and to better understand and measure risks.
   After this, the book goes through analyzing in a tad more traditional way nuts and bolts of options: greeks, IV and various nuances like dividends, exercise, etc.
   From Ch 4 on, the book goes deep into analyzing the 4 pillars of option trading: Verticals, Straddle and Strangles, Wingspreads (butterflies, condors, etc.) and Time Spreads. I found those chapters to be insightful and refreshing, giving the reader a lot of new perspectives on topics (e.g. the butterfly spreads) oftentimes neglected by other authors.
   In the final chapters, the book discusses the volatility skew (challenging) and some insight from market makers (very challenging, at least for me)and closes with a gem on hybrid hedging techniques created by the author.
   In closing, I think that if there is one book you must not read but master if you want to deal with option trading, this is the one.
   Mr. Cottles' unique way of teaching never tries to let you think options are easy; he'd better try to discourage you from going ahead than letting you think to that 100K BMW your are going to buy next month, with the proceeds from your option trading. This is something that, at least in my experience, is very hard to find in the trading teaching and mentoring arena.



3. Charles really does pick up where a lot of other authors leave people hangin. The information in this book has really transformed my trading and my options awareness. He's not re-hashing the published works of others traders/authors here, his material is dense with lots of information related to his personal experience in the trading pits and the lessons learned while training many, around the world to become pit traders.
   
   For people that are new to Options, this book seems like drinking from a fire hose. I, myself, am reading OTTHR for the 4th time. Charles really doesn't hold back.
   
   Overall this is an excellent book with lots of good information for someone who is serious about trading Options. It may take a couple of readings to lock-in the concepts but it will not leave you "hi and dry".. Let me add also, that books of this caliber is not just for market makers.
   
   
   $eaTrader



4. not much to say but if options trading were a religion this would be its bible. you will need to have some understanding of options to fully grasp this book. i'd recommend "option volatility and pricing" before.



5. I can say this is one of the few outstanding texts for the practicing option trader.
   
   You will really need to have a intermediate understanding of options to benefit.
   
   Cottle covers trading options in a unique way that will really take you to the next level.
   
   His coverage of adjusting positions is outstanding that I have not seen covered anywhere else.
   
   The book will require a lot of work to really understand but after a few readings you will start to feel the lights coming on.
   
   this is one of 4 or 5 option books I would really recommend if you master this book you will be well on your way to understanding options on a very deep level.

5 comments about New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing.

1. I've read a dozen books on covered calls. I run a website dedicated to covered call investors ([...]). And in my opinion, this is the clearest explanation yet of the subject matter. No hype (no 'earn 8%/month' garbage). Just accurate facts and examples. A must-have for anyone who is serious about covered calls. If you only buy 1 book on covered calls, this should be it.



2. This book was recommended on CNBC's Options Action show in response to a viewers e-mail. I own countless books on options trading but nothing I have comes close to the information found in this text. Natenberg completely covers all the mechanics of options, valuations, proper use of, and trading strategies to name just a few of the topics covered. He definitely goes far beyond what you will find in most books on the subject.



3. Very clearly written and explained.
   
   Though english is not my mother language, I managed to understand everything that was in the book.
   
   A must for every trader who already has basic understanding of options and covered calls and wishes to expand his knowledge and discover new trading tactics and methods.



4. After reading this book, I am left with the question of "why". Why should I write covered calls? By the author's own analysis, the covered call strategy proves hardly any better than a buy-hold strategy. The claim is that it is less risky than a strict buy-hold strategy. While that may be true, as others note, it seemingly would require an awful lot of effort to execute and result in a great deal of complexity, particularly in a taxable account. For me, it is more than I would want to take on given that expected return appears quite similar.
   
   Additionally, I think the risk mitigation of the CC strategy is out of proportion to the potential loss in upside potential. And practically speaking, the strategy seems to be one of being forced to sell "winners" while keeping losers. To me, that does not seem to be a winning strategy.
   
   Additionally, if one is trying to mitigate risk, why would one not simply hold fewer shares in a long position (investing the difference in a CD for instance, with a guaranteed return)? Sure, the "premium" might be less, but the downside risk would be much lower and the upside potential much higher. In proving out this concept to myself I built a simple spreadsheet model using the Pfizer example from p. 24 of the book (stock at $42.50 and $45 calls paying a $0.55 premium). Plug 1000 shares into the CC and BH parts of the model and the CC strategy looks pretty good based on gains and losses ranging from -100% to +~10%. But plug in 1000 CC and 750 shares BH and all of a sudden the CC strategy looks terrible on the downside and upside outside a very narrow range (+/- ~5% or so). So it seems that covered calls would make sense if the stock price is not very volatile and the "premium" payment is pretty high relative to the stock price. Otherwise, if the stock has much volatility or if the premium is low relative to the share price, buy and hold (with fewer shares and the difference invested in a principle protected asset) seems to make more sense.
   
   I'm sure there are folks who know a lot more about the CC strategy than I who will argue convincingly against my comments or demonstrate that my simple analysis is wrong - and they may very well be right. But this is a review about the book and in my opinion, the book did not illuminate on these points. Instead, it communicated a strategy of apparently very limited benefit, relatively high complexity, and one that runs counter to the idea of keeping winners and getting rid of losers in one's portfolio. I would like to be convinced otherwise, but a strategy like this (as I understand it) is really not what I'm looking for.



5. The author, who obviously has an enormous amount of experience in the field of put and call options, has put together a well organized book, with easily accessible information for the novice investor. Money well spent.

5 comments about Fundamentals of Options Market.

1. This book is a very good introduction to options if you are new to the stock market. It is written in a very friendly tone, easy to understand and even briefly covers the basics of fundamental and technical analysis of the underlying security. It even covers such basic things as types of orders (limit, market, stop etc.).
   
   The book covers not only the most basic options trading strategies, but also complex strategies that combine different options and underlying securities. If you, however, need something even more advanced, like "Short Iron Butterfly", get the book "The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies" by Guy Cohen.
   
   If you are already familiar with the stock market and just want to know about options, I can recommend "Trading Options for Dummies" by George Fontanills, which doesn't explain about the fundamental analysis or order types.
   
   The disadvantage of this book is that an important technique of selling puts as a way of buying the underlying security is not covered in this book. If you are interested in this issue, read chapter 19 of "Options as a Strategic Investment" by Lawrence G. McMillan. Another disadvantage is that it doesn't have a single references to other books.



2. This book is a very practical options trading book. I have read parts of this book more than once and I continue to carry the book as a reference for some of my complex trades. It is well written for a beginner and intermediate user, however a prior working knowledge of options trading gives you a definite advantage in understanding the subject.
   Parts of the book will save you a lot of money if you know what you are looking for and that only comes from hands-on trading with real money. There are a few other books which have been written on trading options after this one that are worth looking at also, but I think some of them may have used this one as a template on how it should be done.



3. I've seen both the authors speak at an IOC seminar on equity derivatives. They make a difficult subject understandable. I highly recommend the book, or even better, to see them speak in person.



4. Finally, a book about options that is understandable and helpful. The book has been reprinted so the errors that the other readers referred to have been corrected. I loved it!



5. The authors appear to know their subject well. I would recommend this as a beginner-to-intermediate introduction to fundamentals except for the numerous errors.

   Some errors are like "typos" such as 6 instead of 60, some are more serious and subtle such as specifying a call when a put was meant, and some are fundamental structural problems with the book. For example, the Quiz answers don't match the chapters to which they purportedly provide answers, and in some cases only some questions are answered anyway.

   The errors are so numerous, and some of a type that they won't be caught by the average beginner, that it might be dangerous for a beginner to rely on this book as a reference or as an only introduction to options.

   I'd really like to have a completely "cleaned up" copy, as I think that could make this the best introduction that I'm aware of.

5 comments about Real Options, Revised Edition: A Practitioner's Guide.

1. Is a good book, however, be aware that you need a very good foundation in finance and valuation. Do not pretend to learn ROA with gaps doing a simple NPV excersice. THE BAD its really a shame been a Practitioner's guide not found the end chapter solutions to the problems, even giving you a supposed internet address to obtain it. The address does not exists.



2. The book satisfies someone who is interested in alternative concepts on how whether widely accepted view of calculating the estimate of future project or ROA gives more precise estimation.
   
   Good graphs, easy to read but good to know simple concepts like SML and CAPM model before reading the book



3. This book is a little confusing but if you have a background in finance, it is very helpful. It is also a valuable book for anyone, especially with the way the market is.



4. I'm feeling very frustrated with this book, and here's why. The text contains sample questions, and directs to a website for the solutions. The website requires registration in order to access the material. After filling out the necessary details, I received an email from the publisher stating that I did not qualify as I am not a lecturer. I pointed out that the text claims to be a practitioners guide, not a lecturers guide. After numerour emails back and forth I've given up - I'll return it instead.
   
   Most curiously I was never offered to purchase the material, so I can't even feel conned - just pissed-off.



5. I regret not requiring this text for my students this semester. While there are a few typo's, that is not the point, as the problems are all easy to work out and solve.
   
   A very, very good book. If you are teaching a senior level course that uses even just a few weeks of real options (like my engineering economy course) use this book! You can cover the whole book in 10 or 12 lectures. The end of chapter problems (while a trifle scant) are well done!

5 comments about The Options Course Second Edition: High Profit & Low Stress Trading Methods (Wiley Trading).

1. Very in depth publication on Options Trading. Could be a bit better set out as one tends to get bogged down in the detail and has the effect of one losing interest.
   
   Surely options trading is not as difficult as this book tends to make it.



2. This book is not an easy read; but, the information content is high and it is well presented. There are numerous examples that make the information clear. If you are looking for a book that will provide detailed, in depth, well organized, information on options trading this is a very good book.



3. This book is a very good start if you are not familiar with the stock and options market. It covers the initial things like how to select the broker, how to apply for a proper Options Trading Level at your brokerage firm, which kinds of orders exist (limit, market , etc). It is written in a very friendly manner, it is very easy to understand.
   
   While the book is mostly devoted to teaching market novices about options, the author have decided to not focus on the fundamental analysis of the underlying securities (maybe due to the size constraints of the text). To fill this gap, I would recommend "The Only Three Questions That Count" by Ken Fisher in addition to this book.
   
   If you are already familiar with a stock market, have a brokerage account, and just want to become familiar with options, I can recommend a shorter read by the same author: "Trading Options For Dummies". But if you have enough time for reading and is not frightened by large amounts of text, "The Options Course" is the best book for novices I've ever seen.
   
   The only drawback of this book is that it does not address an important technique of selling put options as a way of buying the underlying security. 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, you can find it in "Options as a Strategic Investment" by Lawrence McMillan, chapter 19, or there is a special book "Using Options to Buy Stocks" by Dennis Eisen.



4. Not great on information if you have more than a curosry understanding of options. I must admit, however, that many swear by this book--I just didn't get that much out of it. A better, albeit much less entertaining book, is Options as a Strategic Investment. Just be sure that you are purchasing the actual book and NOT the study guide.



5. My background up until reading this book was a few years of mutual fund and stock trading in my personal portfolio, so my review is based on that. I had no previous options knowledge when reading the book.
   
   I felt that George did a fairly decent job of covering a broad range of topics in this book (maybe too broad), from stock and option trading, to how to pick a broker. IMHO since it is attempting to be a fully-encompassing book, it should have covered tax implications and tax planning, maybe even the current tax laws to some extent. Somebody who is new to this and happens to do well financially w/a large sum of realized profits, or do badly and end up in the poor house, will be in for a not-so-nice surprise when they file their taxes.
   
   The examples and rationale on options strategies were clear to me, though some of them necessitated a 2nd read until I could fully understand. One subject which he left me hanging on is implied volatility vs. statistical volatility (i.e. I was looking for some formulas and concrete examples on how to determine if a given option premium is underpriced or overpriced). Instead the book refers the reader to a premium website for that content (I assume there is a fee/subscription involved...self-promotion).
   
   Practially, I have used some of the simpler options strategies, albeit in 1 or 2 options contracts at a time, and have found them to be useful. It is a completely different way of thinking, for example, to weed out the lousy companies and/or companies which are expected to face difficult circumstances in the future and to put a bearish trade in place. The drawback is, ATM and ITM options are not cheap realative to the stock price and each options contract is in a multiple of 100, so between any stock owned and the options contracts themselves, this is something needing a commitment of thousands of dollars (many thousands of dollars since you'd want to diversify your portfolio with a few holdings). You can quickly lose most/all the money you paid for the options contracts if you are not careful. I felt his historic examples of options plays in the stock market were optimistic ones in general...I wouldn't expect to have that much of a return on a regular basis. And personally I will never trade on margin or enter into trades with unlimited risk.
   
   The main valuable thing that I have gotten out of this book is that options can be used as a means to manage risk, which is extremely important in a volatile stock market like what we have now.
   
   Overall I learned quite a bit from this book, but it left me thirsting for how to value an option's premium as over/under valued and also very lacking on the tax implications.

3 comments about Understanding Leaps: Using the Most Effective Option Strategies for Maximum Advantage.

1. Mark LaMoure, Boise,ID
   
   POWERFUL SUCCESS
   Do you want more Time, Safety and Security for option investing and higher profits? The truth is, one of the biggest ways money is lost in option trading is from buying too short of a length of time for investing. Discover the book "Understanding LEAPS" by authors Marc Allaire and Marty Kearney for higher success. Copyright 2003.
   
   You can solve the problem of too little time buying LEAPS. They last longer than a typical stock option. LEAPS last from 7 months and go up to 3 years in the future. LEAPS should be understood by every profit-minded investor for their precious, high-powered time benefits. LEAPS can be very powerful.
   
   LEAPS cost you about 50-90% less in price than stock, providing potentially bigger profits. Learn more about LEAPS and their profitable benefits today. Discover new possibilities.
   
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   Learn the true story for investing with LEAPS. The Authors wrote a hands-on guidebook defining "what, when, where, why and how" on LEAPS. The two write about advantages of LEAPS for both the Basic and Advanced investor.
   
   RATED HIGHLY
   Looking at the book's promising Table Of Contents, you see 25 Chapters and 278 pages of gold-grade material. The book is comprehensive and highly rated. I compared five similar books on LEAPS to "Understanding LEAPS." Its clearly the best of the five, by far. So I rate the book at least 4-1/2 stars.
   
   If you liked this review, please click YES. Thank You.



2. This book is written in a very methodical manner with detail coverage of each topic. The book is not one you set down a read in one or two settings but requires careful reading and study. In fact, I have read about 1/3 of the book in depth and proof read the remainder for an overview of its contents. The reason for not giving it 5 stars is I have not applied any of the trade stategies in the book and secondly there are no stock charts in book. Stock charts are an important part of deciding which option trade to apply.



3. This book is one of the best options texts I've ever read. The material is presented in a clear, easy to understand manner and is less technical than the McMillan books, but is still useful to the experienced options investor.
   
   One thing I like about the book is that it defines the difference between trading and investing and presents strategies for both options traders and investors (though I disagree with the manner in which he differentiates the two groups).
   
   As the title indicates, the book concentrates on LEAPS strategies and presents a number of conservative uses for these instruments. Included in these strategies are stock replacements, covered call writing, spreads and using deep-in-the-money LEAPS as an alternative to margining stocks.
   
   I've been an options investor for nearly 30 years and employ the more conservative strategies mentioned above to enhance the returns on my equity portfolio. While Allaire writes in a manner that is understandable to the novice, I was impressed with the subtle issues and practicle considerations he discusses for each of the strategies.
   
   He also does not over hype the strategies as so many other writers do. This is another reason for giving the book a five-star rating.