I think the McMillan book is an excellant primer. Risk already had me purchase and read most of the books he has suggested on this thread and I will say wholeheartedly that the 3% of information I actually understood of the total availible knowledge found within Taleb, Natenburg, and Marlow books would have been more like 1% if I had not first taken the time to read McMillan's "Options as a Strategic Investment"... Also pay no mind to Mr. Super Genius Arb when it comes to that Cottle book -- the shit reads like an advanced physics book to a novice (even looks like one with all those stupid charts)
Forget all the books; sell some short delta straddles(-30deltas), pray for neutrality and watch your curve compress nicely(if it does). If it doesn't, but some spot.
Cottle's book suffers from what I can only term as "intellectual masturbation." A very worthwhile read, but his brilliant mind actually interferes with the presentation IMO. He presents these intellectual tools like "syntool" which he uses to re-imagine positions as their equivalent synthetics. His perspective is that of a market maker with an IQ of 300 who drank way too much coffee and you are the dullard trying to trade against him. "What is the difference between a straddle and a strangle?" "A butterfly...." There is great great stuff in there, don't misunderstand, but it is poorly organized and the presentation is too pedantic and clever for my tastes. wee
You had trouble with Cottle only because your mind's been turned to mush by all those girlie books you read. . . . Homo.
Yes, what's up with the cute trademark-terms, "SynTool"? hahaha Netting the boxes from a complex single-asset option portfolio was nice to see in print. It's nothing new, however.
Wee, I feel exactly the same way about Cottle (despite my playful response to Joey above). He has some good insights. But, by and large, I found the book rather muddled and largely useless.
Ahhh yes! And I was just telling you that I miss the "homo" remarks a few hundred times a day. Your still the man Arb! HD, Kill Ur Self...