Newbie book suggestion

Discussion in 'Options' started by Ticked, Mar 14, 2004.

  1. Ticked


    Trading stocks since 1996.

    Started "experimenting" with in-the-money calls 3-4 months out on "news dumpers" and accidentally making money.

    What I have been witnessing the past year seems to be the most confusing display of randomness I have ever seen.

    Want to learn more before I get my ass handed to me.

    I have about 25 questions right now.

    Need a "starter book" to tell me what the hell Is going on.

    I'm not looking for complex strategies right now [unless that is what I have been seeing :p], just some answers to basic questions regarding volume & open interest, stock movement to option movement, how far out to buy, etc.

    Would like to start with one or two books but, between Elite's book section and Amazon, I'll be dropping about a grand.

    If you could pick your top two books, what would they be?

    Thanks for the input.
  2. (1) McMillan's "Options as a Strategic Investment"
    (2) Natenberg's "Option Volatility and Pricing"

    Good luck.
  3. nitro


    On Options?

    "The Options Edge" - Gallacher.

    But probably need to have one of the books posted above for reference.

    Remember one thing about these books. Many of them are outdated. The important thing to get out of them is how the author made money. This gives you ideas on how to come up with edges in the future.

    Few people are willing to hand you a winning edge working _now_. They will trade it until it is arbed out, then write a book about it when what is left are carcasses with hyenas all over it.

  4. Maverick74


    "Option Market Making" by Allen Jan Baird
  5. Hull, fifth ed. for the math and the models.
  6. nitro



    I had a copy of this book and lost it.

    I may have to get it again.

    nitro :(
  7. Maverick74


    Best book out there, you better buy it back if you can find a copy.
  8. Ticked


    Thanks everyone - much appreciated.
  9. =================
    Ticked , might save record of ITM profits in writing or print 'em like a custom book.

    Dont know any profession where any one would have only 4 books ;
    however Ticked, its a good start.

    Big Trends by Price Headly.

    Since the name is '' stock option '';
    like stock option info & stock info
    iin the 3 Jack Schwager top trader & 1 Tek analysis books.