Options books

[Effkay]

Hi everyone,

I was interested in trading options, I already know the basics (I think!), through Mcmillan's Options as a strategic investment. I wanted to start trading them properly using properly HEDGED positions. I was wondering whether anyone could give me any advice or put me in the right direction.

Feel free to pm me if that is what you prefer.


Thanks

Effkay

 

[Airthrey Capital]

The best 2 books I would advise that you read are....

Option Volatility and Pricing Strategies by Sheldon Natenberg

Options, Futures and Other Derivatives by John C. Hull

Both can be quite heavy reading, but if you feel you have mastered the basics, then you should get your head stuck into the above titles.

 

[zzaxx99]

Also worth a look is Buying and selling volatility by Kevin Connolly, which nicely complements the Natenburg book

 

[Effkay]

Thanks guys, I think i'll get the natenberg book for now as Ive heard a lot of good things......anything on hedging?

Thanks

 

[optionator]

There is plenty of free training information on the web that I would suggest you research. Also plenty of good books to read that can enhance your knowledge.

Books & Programs:
Options for Beginners by Don Fishback. Easy read on options basics, provides good foundation.
Trade your way to Finacial Freedom by Van Tharp. Good book on creating trading systems.
Options as a Strategic Investment by Lawrence McMillan is the options bible.
The Options Trader Handbook by Jabbour & Budwick. Good book on trade adjustments.

Websites
http://www.cboe.com provides good FREE tutorial on options trading. Several option strategies are available.
http://www.888options.com another good site offering FREE tutorials along with FREE seminars. Check there schedule for a location near you.
http://www.optionsrez.com good site for FREE calculators to asses probabilities of success and expected returns for various options trading strategies.

Good Luck!

 

[Hittfeld]

Hi everyone,

I was interested in trading options, I already know the basics (I think!), through Mcmillan's Options as a strategic investment. I wanted to start trading them properly using properly HEDGED positions. I was wondering whether anyone could give me any advice or put me in the right direction.

Feel free to pm me if that is what you prefer.


Thanks

Effkay

Well, if you have read OSI and don`t know the answer, you haven`t read it. If you had read, you would know.

OSI needs to be STUDIED, not just read. Same applies to Natenberg, Hull, Neftci, Prisman...

I think an easily understood way to get the proper ideas is through the Thomsett books (Getting started in Options and The Leaps Strategist) and by Harrisson Roth (LEAPS ...).

Sincerely

Hittfeld

 

[dewitte]

Hi everyone,

I was interested in trading options, I already know the basics (I think!)

I'd endorse especially Natenberg's book but would add: once you've read 'm all and think you know everything about options, top off with Charles Cottle's Options: Perception & Deception (if you can lay your hands on it). You'll feel like a beginner knowing the basics again!

-dewitte

 

[Effkay]

Has anyone read the option traders handbook?

Is there anything in there that's not covered in natenberg or mcmillan?

 

[Effkay]

Can anyone give me the name of a good book regarding volatility expecially implied volatility?

 

[wisestguy]

someone tell me why options are a good way to trade the market , in concise terms please ?

I have studied this area to a moderate degree and cannot see why they would be better than vanilla products if you are an individual trader.

 

[Effkay]

Because you can use them in a variety of ways and use them to capture expected movements (or lack of) in a way that long, short, nothing positions can't do,

 

[belinea03]

Effkay,

After studying all the books recommend above test your understand by reading Charles Cottle's "Coulda Woulda Shoulda" - it's now a free e-book. When you begin to understand the humour you're on your way to a sound understanding of options.

 

[wisestguy]

doesn't really matter how many ways you can " do the market " , you only need 1 or 2 consistently profitable methods and that's it .

the reward:risk on options are not greater than that on vanillas , in fact I would say they are less .

because option price move in advance of the market , so you usually find it difficult to buy or sell at the prices that make large reward : to risk , thereby comprimising your profits profile quite a bit.

the market is not stupid least of all in options , it will be priced ahead of the cash .

can't fool me , options trading are to a large degree, a mug's game .