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The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies

From FT Press

Author : Guy Cohen
Binding : Hardcover
DeweyDecimalNumber : 332.63228
EAN : 9780131710665
ISBN : 0131710664
Label : FT Press
Manufacturer : FT Press
NumberOfPages : 400
ProductTypeName : ABIS_BOOK
PublicationDate : 2005-04-17
Publisher : FT Press
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Customer Reviews

Rating:
Summary: Awful book; Not good for learning nor as a reference.
Comment: At first glance, this book appears as though it would be useful until one actually tries to make use of the information it provides. This book is not good as a reference due the errors which are such as to make the explanations incorrect in some parts. One statement which I especially disliked which appears throughout the book as a means to exit is "Manage your position according to the rules defined in your Trading Plan." This book is also not good for learning either. As early in the text as the first twenty pages, the author uses terms which he does not explain. I would recommend that you buy other books.
Rating:
Summary: Decent strategies
Comment: A good read overall if you understand options already and are looking for supplemental strategies. I read all the strategy books I can find, and I subscribe to OptionsMonster and [...] and I've been doing very, very well trading options.
Rating:
Summary: Strong on strategy but lacks discussion of option behavior
Comment: This book explains the theory and logic behind the more than sixty option strategies available to the option trader, from the simple to the highly complex. The author touches on the advantages of each strategy,risk profile, greeks, time decay and entry and exit.Often an example is given for each of the strategies discussed.
Although it is alway good to be familiar with as many of the option techniqus as possible, most individual traders only focus on few simple option instruments in practice.To execute such trades successfully, it is critical to be at least qualitatively familiar with option behavior.This includes factors such as short interest on the stock, how close the stock price is to the strike, volatility of the stock and implies volatility of the option,open interest ratio.
These factors are key in deciding what trade to take. As an example consider a stock with the call to put ratio of 3:1 with few days left to expiration, what option is more likey to expire worthless?. Or A highly volatile stock pinned at strike near earnings, what strategy will you use to trade options in this case? etc. The answers to such questions are critical in deciding how to trade. Some traders use options to mitigate losses on their stock trades or increase profits. In such cases where stock /option trade combinations are executed, technical analysis in addition to option behavior becomes critical. These are areas that this book does not touch on, probably because they were not within its intended scope . I would suggest for advanced option traders reading The Volatility Edge in Options Trading or Trading Options at Expiration. Beginning and intermediate traders that are more interested in simple option strategies combined with trading stocks, I would suggest Generate Thousands in Cash on your Stocks Before Buying or Selling Them: Third Edition.
Using these books in combination with " the bible of option strategies" allowed me to translate theoretical knowledge to money making trades, which I assume is the goal of most traders.

Rating:
Summary: Bible of Options Strategies
Comment: It is hard to find a book that shows you the different ways to trade options in combination as well as the risks, rewards, and special considerations of each one. It is not a long tutorial but rather a set of logical groupings of related types of trades to choose between for a specific situation. It is more like a recipe book so you can quickly look up the the types of options that are good choices for a situation. It also defines each type of option strategy in a similar layout in just a few pages each. Very helpful!
Rating:
Summary: good book
Comment: I am a pretty experienced stock trader but I must admit trading options is much more challenging. The good news is once you start understanding options you won't want to trade stocks again. This a very well structured book, a bit repetitive here and there but overall I liked it. Despite the title I won't consider this book the "Bible" of options, if you really want a "Bible" I would recommend "Options as a Strategic Investment" by McMillan. However, this the best book to start learning options. It gives you the basics, it explains all the strategies out there and in which conditions you should use them.