McMillan on Options vs Options as a Strategic Investment

Discussion in 'Options' started by elitetradesman, Jun 23, 2011.

  1. I'm a beginner in options trading and have limited experience with it. I have sold some covered calls and naked puts, that's pretty much it. The only book I read on options is New Insights on Covered Call Writing, by Lawrence G. McMillan, which I regret reading because it's bloated and repetitive.

    Now I'm looking for a new book to read and It appears that McMillan on Options and Options as a Strategic Investment are some of the most popular reads, also by the same author :D, and I'm not sure which book to read. I flipped through a few pages of both, and didn't see much difference.

    I prefer books that are precise and concise. Which one would you recommend?
  2. McMillan on Options is more of a book that gives a basic overview of options' strategies and then shows people how to try make money using things like Put/Call ratios, Unusual Options volume, and spreading things like Gold vrs. Gold miners or whatever.

    Options as a Strategic Investment is really more a book about showing each strategy and giving guidelines for controlling losses, locking in gains, etc. by rolling or whatever. There is very little attempt to show someone "how" to profit by watching charts, or viewing Put/Call ratios or whatever.

    I have both books and I think they are good for reference. I can't say which one is better, because it really depends on the person. If you want some insight on how an advanced Option trader thinks, McMillan on Options would be more like that, even though it is quite dated now.

    If you need a guide of popular strategies, profit / loss charts, adjustments to make if it goes for you, against you, etc. then Options as a Strategic Investment might be better.

  3. Thanks, JJacksET4.
  4. I agree. Options as a Strategic Investment is a very informative book; it is not easy to read, but there are many practical advises that I found useful. Also, I would recommend Natenberg's Option Volatility & Pricing. It's more theoretical than McMillan's Options as a Strategic Investment and it's more dated (last edition from 1994) but it's well written and helps to understand the various concepts on which option pricing is based.
  5. Thanks!
  6. drcha


    Having read them both a few times, Options as a Strategic Investment is the superior book in my opinion. But the other is good too. Read them both, but that would be my recommended order.
  7. I've read chapters out of both and they are each one, excellent books.

    In truth, books like Larry McMillan's, need to be regularly re-read. They are packed with data and it is only after trading for 6 months/6 years/etc. that you can better appreciate the import of the concepts contained in them.

    Ditto other books too, like Martin Pring's books on Momentum or John Murphy's books, or the Market Wizards series by Jack Schwager.

    Larry McMillan makes a lot of appearances at trader/investor expos. Sometimes his events are free. I highly recommend you try and attend. He takes questions from the audience and always offers attendee discounts on his books, videos and newsletters. Check to sample some of his videos.

    Larry McMillan's newsletters are one of the very few that I have consistently renewed year after year. DEFINITELY worth the money.
  8. xyannix


    Options as a strategic investment is more of an encyclopedia / reference book than a story book.

    Read "Reminiscences of a stock operator" to learn about trading.

    Read options blog writers like:

    Read Andrew Wilkinson from Interactive Brokers daily options brief.

    Read Elite Trader :)