Hi all, Long time lurker, first time poster. Well, I've been trading options for the last two years now, and I've been hitting up the OIC's optionseduction.org resource, but I'm looking for a book to read that can delve deeper into options. I've read up on strategies, but nothing so far as to how to evaluate long calls/puts suitabilities. Can anyone recommend one? Last month was the first time I went big with options, bought MA Feb 220 puts for about .85 and cashed out at 6.00 when MA crashed after earnings. I'm not saying I'm going to get that lucky again, but I'm kind of in the dark as to the deeper fundamentals about options. TYIA for posting.
I never understood questions like these. Buy them all! I have learned a little from just about every options book out there. One trade pays for it ten times over. If I was on a budget: 1) Natenberg 2) Hull 3) Taleb 4) McMillan 5) Filthy 6) Saliba 7) Cottle 8)http://www.amazon.com/Options-Volat...=sr_1_1?ie=UTF8&s=books&qid=1266720419&sr=1-1 8 is the first book that I have seen that is actually readable and talks about things no other books does. That's like $600 worth of books. Peanuts.
Thanks Nitro. Number 8 is winging it's way to me as we speak. It's one I hadn't heard of yet. I can't really remember the beginner books so well and which ones helped me understand the most. But maybe Guy Cohen. Sometimes the light comes on because of prior understanding. The actual book I was reading wasn't really that good. I remember some 'Ah-hah' moments on the 3rd or 4th readings of Natenberg and Baird (I'm probably slower than most here). I need to reread Taleb again. Also some of the videos at Think or Swim and the OIC are helpful for beginners and then more advanced learning.
FWIW, here is the EliteTrader Options book review page http://www.elitetrader.com/bo/index.cfm?action=showbooks&CatID=4
After reading the first post I had to chuckle when I saw the OIC's optionseduction.org part. Look carefully at the letters in bold, folks. That's a whole new use for options that we've never heard of before!!!
Filthy's book: Volatility Trading + CDROM by Euan Sinclair, Ph.D. http://www.amazon.com/Volatility-Trading-CD-ROM-Wiley/dp/0470181990
Crack is good for building intuition on vanillas: http://www.amazon.com/Basic-Black-S...=sr_1_1?ie=UTF8&s=books&qid=1266957476&sr=8-1