Major: I, like many in this forum, have read many books on options over the past several years. In my opinion the best author on managing risk is been Cottle. His discussions on risk analysis are superior and his writing style is clear. The book I would particularly recommend is Options: Perception and Deception.
Be careful!!! Phil still owes Cottle for his copy and is trying to get you stuck with the bill!!! QUOTE]Quote from fh2000: or if you are cheap like me, you can purchase his electronic version with just $40 or so. I printed it out and store in a 3 hole binder. -------------------------------------------------------------------------------- : [/B][/QUOTE] Yep, printed mine out at Kinky's , uh, Kinko's
Butterflies....just wondering if there are any butterfly lovers in here and would like to take part in a discussion of them. I am biased to the Out of the Money flies. Reason: the further out of the money the body is, the lower the net debit. Same is true for In the money, but the problem there is the constant threat of assignment.
Bob, The difficulty of OTM flies, is you need to purchase them with a longer timeframe. The probabilities for the stock to land inside the range of the OTM fly is small. How do you catch the fly so it won't fly outside of your wings?
Seriously, how is Cottle's "Option Trading: The hidden reality" compare with Baird's "Option Market Making" or "Dynamic hedging" by Taleb? I don't want to spend too much time in reading. Instead, I prefer to trade, to write software, and of course to read posts from you guys. Please help me to select the best one from these three.
I've fallen in love with them ( and condors) but am only trading SPX so no assignment risk...my goal is to build them to come out with a credit...no easy feat :eek: (notice I say "goal")