Book Description

Do you want to learn how to trade successfully in every market environment? If so, you have picked up the right book. The Volatility Course is designed to help you integrate the use of volatility in your trading approach–which will help you to become a more successful trader.

But in order to understand volatility, it is essential to grasp the basics of investing, which is why The Volatility Course first provides a comprehensive review of stock market basics, including equities, indexes, exchange-traded funds, price quotes and charts, and, most importantly, options.

Through expert advice and in-depth examples, this book:

• Explains what market volatility is and how to quantify it
• Focuses specifically on stock and options volatility and their corresponding strategies
• Provides a road map detailing how to identify the ups and downs of market volatility
• Describes the strategies that work best in high and low volatility markets

Filled with tips and techniques from renowned traders George Fontanills and Tom Gentile, The Volatility Course will help you understand the different types of volatility, how to measure and anticipate changes in volatility, and how to adapt your trading strategies to excel in prevailing market conditions. With The Volatility Course as your guide, you no longer have to wait for the right market conditions to trade successfully, because you’ll know how to trade under any market condition. ... Read more

Reviews (5)

A Must Book for the Beginning Options Trader
As someone who has been trading options for a couple of years, mainly has a hedge against adverse price moves in stocks, I wanted to try my hand at a more aggressive strategy, using options to make money, and possibly become wealthy. I knew that a thorough understanding of volatility was necessary for options trading. I was drawn to this book because I had previously bought the Options Course from George Fontanills and thoroughly enjoyed it.

The Volatility Course has two themes: Understanding volatility and integrating volatility into your options strategies. There isn't a lot of theory to bog the options trader down but good examples to bring home his points. While I may have wanted to see a little more theory for handling the futures market, the book is excellent and would recommend it for the beginning options trader.

Doesn't deliver the goods
Readers would buy this book assuming that they will be able to master the concept of volatility, and use it in their options trading, but this is far from being the case.
One would expect a book that deals with an advanced concept such as volatility, to take it as a given that the readers are already familiar with all the basics such as "an option gives the buyer the RIGHT not the OBLIGATION" etc.I estimate that about 2/3 of the book deals with such beginner stuff.
On top of that, the authors don't even try to conceal that their primary purpose in writing the book is to deliver traffic to their premium web service.
I did learn a few things about volatility, but I was left with the feeling that I was tricked

Useful information, but mostly regurgitation
The title might suggest that this is an advanced options book; no, it is not. Three quarters of the content is a mix of other G. Fontanills books, and one quarter some updated material on skews, calendar spreads, sentiment measures, etc. The book is a weird mix of information for total newbies to the stock market and intermediate level options traders. There are some errors and typos in the book as well, so be careful when you apply the strategies to your real life trading.

So much practical information in one place!
As an Options Trader I was always overwelmed by all the tools available to me, and by the barrage of financial news. I had information paralisys.

Where do I start? What kind of stock behavior should I be trading in this current market? And once I found a stocks I liked, What kind of strategy needs to be applied? Exactly how do I find the best options for this stock?

This book is the real thing. I am a "follow the checklist" kind of person, and I have always been looking for sensible process to look for trades. Something simple yet able to give me consistent results.

Knowing that Implied volatility is such a factor in option pricing, I now can navigate thru tha maze of option chains and pick exactly what is required for my trades, because now I know what trade needs to be done.

This book is fascinating and it has the "See thru the eyes of the trader" approach I was looking for.

This book has now taken the place of about five other books that I will be auctioning online.

A Masterpiece!!!

Outstanding!
This book is outstanding!
Fix a few editorial errors and I will give it 5 stars.
Great job! ... Read more

Book Description

Everything you need to know to understand and profit from investing in options

Getting Started in Options

Puts and calls? Striking prices? Time values? If you feel unsure about investing in options, you’re not alone. Options have only been traded since the 1970s–so even the most seasoned investor may feel intimated by them. But don’t let the seeming complexity of this unique investment vehicle frighten you away from the potentially lucrative opportunities to be found in options investing. This straightforward guide thoroughly demystifies the options markets, helping you understand how they work, where they can fit into your personal financial picture, and how you can reap healthy returns from them. In nontechnical, easy-to-follow terms, Getting Started in Options, Fifth Edition arms you with the knowledge you need to make informed decisions about choosing stocks, tracking options, selling calls, and much more–including how to utilize the many new online resources.

You’ll learn how to:

• Master options terminology and concepts
• Set up a plan based on your specific investment goals
• Read the mark et and spot specific risks associated with each type of option
• Understand time values, striking price, and expiration–and use them effectively
• Hedge and speculate like a seasoned pro
• Use options as insurance against losses in stock investments
• Pick the brokerage firm that’s right for you
• Profit in these exciting markets and enhance your portfolio

Filled with new examples, updated charts, and timely additions to reflect important changes in this market, Getting Started in Options, Fifth Edition is a perfect primer to the world of options. ... Read more

Reviews (49)

You can probably find a better introduction to options
I bought this book because I had read a ton of praise about it in various investing forums on the Net. However, after reading it, I must say that I am a bit disappointed. You will certainly learn the basics about options if you read the book. However, I think the book could have been better in some ways. First of all, a better job could have been done in the proofreading process. For example, there are several instances in the book where the author refers to a "call" option when he is really referring to a "put" option. If you know anything about options, you should know that a call option is the opposite of a put option. Those are potentially huge mistakes that the author makes, because if you don't catch them, then you'll end up being seriously confused. Second of all, the examples can be confusing. I thought that the author had left out certain critical pieces of information in several examples. However, after continuing my reading, I realized that those pieces of information actually weren't necessary. It took me a while to figure that out, because I didn't know too much about options at the time. Given that the book is for people who are beginners at options, I think the author should have explained in each example why he left out certain bits of information. Finally, the book goes into various options strategies, but I was disappointed that it didn't talk about the "collar" strategy. This is a very simple strategy that fully protects your investment if it goes south, and it ensures a maximum profit if it goes up (for no additional cost if you play it right). It's a strategy that's easy to understand, so I don't know why the book doesn't mention it.

So, this book is okay, but I'm sure you could find better resources on the Net, or a better book on options.

Best book to start learning about options!
I read this book over a year ago and now i'm training to be an options trader in the CBOE pits. It opened a whole new world for me. The options world is enormous and this book is the best intro for someone who wants to learn about options. Prior to reading this book, I had heard that trading options is the way to make a lot of money but I didn't have a clue as to what options were. A friend suggested I read this book and I did. This book will not teach you everything about options nor will it make you an expert on options. What it will do is explain the basics of options and some strategies that are commonly used. And it does this magnificently! Its an easy read and everything is explained very clearly.

Very repetitive
Thomsett provides the necessary information, but it requires great patience to absorb it all. He repeats himself constantly, as if the goal were to stretch the number of pages in the book.
After reading this book, I found another book that provided all I needed to know to get started with options. It's concise and easily understood. Read the following and be ready to make some money using options: The Short Book on Options: A Conservative Strategy for the Buy and Hold Investor

solid, but could be better...
I found the information presented in this book to be the solid and simple basics of options, but the presentation itself needs a lot of improvement. There are numerous errors (mix-ups between the terms "put" and "call," and several erroneous examples), and the book is HIGHLY REPETITIVE--so repetitive as to be extremely de-motivating. I think this book could have easily been compressed into a pamphlet; at its current length, only people who learn best through repetition of scenarios and examples will enjoy this book. Perhaps if the author had enlarged the scope of the book to increase the information density of the book, I'd find it deserving of a permanent place on my bookshelf.

Would you desire to crash your car?
I stopped reading this book when I read: "When you buy a put, your desire is that the underlying stock's value will fall below the striking price; the more it falls, the higher your profit."

I was afraid the author would try to convince me that, after I buy insurance for my car, I should hope for my car to be crashed.

OK. I understand this book is written for people that do not know much about options (like me). But this does not mean the author has to write things that are not true.

I buy puts and I hope the stocks I buy puts on to soar. ... Read more

Book Description

Renowned options expert David Caplan shows investors how to analyze probabilities and create options positions that place the odds squarely in their favor. A savvy, streetwise book, The New Options Advantage eschews theory in favor of providing readers with strategies that really work. Completely updated, this edition contains an expanded discussion of volatility, on of the most important factors in options trading. Packed full of insights derived from years of successful trading. The New Options Advantage will appeal to a wide spectrum of traders. Specific topics include: The ``trading edge'' philosophy; Understanding and using option volatility; Identifying and exploiting undervalued and overvalued options; Strategies for different market outlooks; Using a computer to trade options. ... Read more

Reviews (9)

Buy it!
This book is almost as good as Natenberg, and much better than McMillan, Schaffers, and Fontanills. Although it is about options on futures, most of the strategies discussed are applicable to stock options as well.

Filled with Insight, Creative, Not For Newbies
A good choice for stock option investors despite it mentioning commmodities. This book will overwhelm a beginner, who should start with Charles Caes' great "Tools of the Bear" (which works for bull and bear markets). Far superior to George Fontanills. Caplan is creative, he writes well and gives the studious reader many important tips. I made two pages of notes from this book. With even a little experience, an options investor will truly ascend to a higher level of knowledge and trading mastery with this book.

The New Option Advantage
I don't receive his newsletter, I haven't been to any of his seminars and I don't trade with his brokerage. That being said, this book is outstanding in teaching non-complicated option strategies to traders who want to receive an "Edge" in trading. I have been trading futures for 7 years now, and have recently implemented options into my toolbag of strategies. So far, I've made at least 20 times what I paid for this book. You do though, must understand the futures market first. Trying to read this book, before understanding futures in general, will leave you in a daze. In contrast, there are many books who over-do option strategies by trying to explain how they came up with different strategies by using complex mathematical solutions and explaining how these solutions can make you money. If you think your confused reading this book, wait till you read one of those kinds of books! Good Luck everyone

for futures options traders only
This book is very useful for those who are interested in trading futures and futures options. It really gives you the best strategies to use to capitalize in any market environment. If you do not have a very clear understanding of how to trade which options and at what time, this book will definately help.

Good book for option strtegist
This book is good for the readers who has a good knowing in option basic. Deep investigations in different futures markets make this book very attractive for serios option trader. But mr. Caplan does not show his methods on 100%. It is not good, because the new traders can lose money if they will follow the Dave's methods as closely as they can. ... Read more

Book Description

"It has been said that in theory, theory translates into practice, but in practice it never does. This breakthrough book defies this conventional wisdom in a unique way. It is a must read for anyone interested in structuring derivatives products." — Dr Peter Carr, Principal, Banc of America Securities

"Harry Kat has done a masterful job explaining the world of exotic options and the role that these options play in building structured securities. Dr Kat conveys the essence of these products from the perspective of a very experienced financial engineer but in a fashion that the less experienced reader can easily follow and understand. In this, Dr Kat has shown himself to be a marvellous teacher. I'm confident that this book will prove to be one of the classics to be read by future generations of financial engineers." — John F. Marshall, Principal, Marshall, Tucker & Associates, and Founding Executive Director, International Association of Financial Engineers

"This is a refreshingly new and different book about putting together structured equity products. It is not a book about deriving formulas but a book about applying formulas. The emphasis on hedging costs and alternative ways of reducing those costs by modifying the structure will be appreciated both by those who actually manufacture and sell these products and those who buy them." — Don Chance, First Union Professor, Virginia Tech

"This book is about applications, about solving real business problems with derivatives.... Contrary to many other books in the field, the approach is managerial rather than abstractly mathematical, aimed at practitioners instead of applied mathematicians. Professor Kat's book contains all the mathematics required. However, the mathematical aspects play a purely supportive role, not the starring role. Bravo!"
— Anthony F. Herbst, University of Texas at El Paso, Founding Editor, The Journal of Financial Engineering

"It is certainly a unique book, much more useful that most new books on derivatives. In a nutshell, this book is very creatively done and a great resource for professionals."
— Mark Rubinstein, Paul Stephens Professor of Applied Investment Analysis, University of California at Berkeley ... Read more

Reviews (15)

Quite an insightful little blue book
I had to read this book as a requirement for a postgraduate level finance course which I took this year. I found it extremely insightful and easy to understand.

I believe (keeping fingers crossed!) that there are a lot of highly technical books out there for those with several years of experience in structured derivatives and the so called rocket scientists. But what about those who don't fall under this category? Where should those new to this field ( structured derivatives) or students who want to grasp a better understanding of derivatives after reading books such a Hull's , start with? This is exactly where Dr. Kat's book comes to picture, with a claim to offer an through understanding of structured derivatives, nothing more or less.

Reading criticism such as the one from "reader from Seattle" (below) is surprising to me, specially when he says: "I bought this book with high hopes, but I found little knowledge in it that I couldn't get from my own colleagues. And now, where is the value of reading a long book if all your colleagues know it from the word go?" Well, let me tell you something, it's for those who are not surrounded by "colleagues who know it from the word go"! And, there are a lot of us out there.

I bought it with little hopes as a text book for my course, but I found insightful knowledge of derivatives in it, which I couldn't get from a lot of my teachers let alone my colleagues!

I highly recommend it to all those who have had an introductory course on derivatives covering books such as Hull's, and want to progress further.

Suggestion: Check your colleagues first, if they know the subject, drop the book!! : )

Finally!!!! A definitive guide for common sense people
This book offers readers, who have little knowlegde about structured products, the insides of it. It is easy to read and easy to understand. I bet the reviewer from New York and Seattle are in this business themselves, as to give this book such low ratings. These people are probably affraid that their clients will buy this book and find out later that they got ripped of by their ruthless bankers. If these people are in the business, they should not have bought the book it in the first place.... Go ask your colleagues!!!
It is true that the math is non-existent, but again there are loads of books written in english with loads of formulas in it that even most english speakers don't have a clue about, and most importanly, how to apply it. This is definitely a book on the side of the consumers of these products. Buy it, you won't waste your money!!!!

GREAT BOOK!
This book has clearly shown me how all the theory I learnt from books such as Hull, Natenberg and Taleb gets applied in practice.
Prof. Kat ingeniously makes the reader understand many option strategies such as risk-reversals, call-spreads, rainbow options, alternative options etc... without throwing them at the reader. He makes the reader figure them out by himself; and this guarantees they will never be forgotten.
Prof. Kat's book also includes an excellent overview of how to structure and market derivative products to the retail investor.
All in all, I strongly recommend this book... It is EXCELLENT!

A nice book for starters...
This is definitely a very useful book for students taking financial engineering courses or complete newcomers in the aera of structuring. The book's written in a very clear and approachable manner and the author doesn't bother you with obscur mathematics. However, being myself a structurer of derivative products, I must unfortunately say that this book didn't really improve my knowledge in the field of structuring. But since I believe that Dr. Kat's main objective was to primarily target newcomers in the area of structured products, and not any professionals working in the business, I still think that the book is a respectable achievement.

Accessible and Easy to Understand
This book is a thorough treatment of equity derivatives and is easy to understand. I especially liked that the book didn't get bogged down with detailed math, but illustrated the key concepts and products. It didn't cover equity related credit derivatives, however, so I gave the book four stars.

For total return swaps used by hedge funds to create more leverage, CDO equity, and credit derivatives often used to hedge equity positions (and vice versa) I recommend "Credit Derivatives and Synthetic Structures by Tavakoli. ... Read more

Book Description

When people think of stock trading, they often think of the glory days of the Internet, when stocks just kept going up and everyone seemed to be making a fortune. Since the bubble burst, many people are scared of investing in the stock market. Sure, stocks are risky—just like any other investment—but with the right knowledge and tactics, there’s still money to be made.

Trading For Dummies isn’t about high-risk, fast-paced day trading. It’s a simple, straightforward guide to the ins and outs of stock investing that offers a measured, level-headed approach to trading. You’ll learn the basics of portfolio management, measuring stock value, market analysis, and much more—all with a focus on risk reduction and steady profits. Inside you’ll learn how to:

• Understand market cycles
• Choose a great broker
• Master technical analysis
• Manage your risk exposure
• Build a balanced portfolio

This friendly guide presents the kind of honest advice you won’t find in the typical get-rich-quick books on trading. Full of practical tips and tactics—as well as hardnosed insider advice—this handy resource shows you how to build a strong, balanced, and profitable portfolio. Whether you want to save up for your retirement or pay for college, Trading For Dummies will show you how to:

• Prepare yourself with the right tools and information
• Develop your own custom trading strategy
• Analyze companies and stocks
• Understand all the exchanges and markets
• Understand broker fee structures
• Analyze market behavior
• Decipher income statements, balance sheets, and ratios
• Read charts and graphs
• Spot trends and profit from them

This book has all the tools and honest advice novice stock traders need to get set-up quickly and safely. Basic strategies and stock valuation methodologies let you control your risk exposure and make wise decisions. Trading For Dummies includes everything new traders need with advice on every type of stock or derivative, every kind of trade, and every popular strategy. ... Read more

Reviews (5)

Pithecanthropus
The book contains a wealth of practical information however there are errors in the mathematical formulas, dates and etc. This is most frustrating from a reader point of view and dampened the confidence in the material presented. However, it is relatively a easy read for general understanding of the money and FX markets. I hope the author does a more thorough check in the future edition in order to do this book justice.

Excellent practical book for the beginners
This is a great practical book for the beginners and intermediate people in the market. When I started in the market as a business analyst, with no prior experience, it was a confused world of trading. After reading this book, things make much more sense. In addition, the book explains brief analytics on how to price and when and why certain instruments will be used for trading. It is geared towards trading. Refer to other books if you are more interested in middle/back office functionality (like settlements, P&L calc, risk management etc.)

Great help for trainers
Many a times, trainers in the banking industry find it very difficult to teach complex subjects like foreign exchange and money markets to relatively junior guys. This book will prove to be of great help to those trainers. Probably the first ever attempt in this subject.( Luca's text book can easily be replaced by this book just because of its excellant padagogy). Hope other titles advertised by RFT will also become available soon, specially the one on Risk Management.

Not recommended for anyone who has previous experience
If you have some experience of foreign exchange trading, this book is not for yourself. You would learn everything written here within the first six weeks of your job as a foreign exchange trader.

However, this book is great for the REAL beginners who want to learn about foreign exchange from the very beginning and for trainers or teachers who teach those who has little knowledge the foreign exchange. This book starts from explaining what bids and asks are and explains so far up to the mechanics of foreign exchange derivatives. The most remarkable feature of this book is illustrations of deal components and market segments showing how each deal components and markets are related to each other. Detail explanation on different market conventions applied to different currencies is also useful. Short questions at end of chapters are good to review what you should take away from the chapters.

Excellent Book
This book is excellent for beginner as well as for advance. It covers all the details right from bottom to top in a very lucid language. It also covers enough diagrams that explains the subject very well. ... Read more

Book Description

The option day trading blueprint you've been waiting for!

Options day trading is no walk in the park. But it is your most potentially profitable way to take advantage of the day-trading phenomenon. Put the odds in your favor with Demark on Day DeMark and Thomas DeMark, Jr. Forget complicated formulas! Instead, this nuts-and-bolts guide gives you a set of option trading techniques, indicators, and rules to limit risk without sacrificing profit. You're shown how to:

*Select, design, and build your own highly-personalized trading model
*Use filters and screens to select optimal option trading candidates
*Identify low-risk entry points in up, down, or even sideway markets

You get savvy tips for buying puts or calls based on market, industry, or underlying security ù even get a phone number to get a free, updated TD Indicators demonstration disk.For three decades, traders using breakthroughs like the DeMark Indicators have made fortunes. Now it's your turn! ... Read more

Reviews (64)

Excellent original ideas
I have folllowed the markets for years. A friend of mine recommended I purchase this book. I am skeptical of system trading. I was intrigued by the credentials of the authors. These did not appear to be people who needed the money. Rather it was apparent that they truly wanted to share their creativity and reearch. Having read the book 2 times and the second half of the book 2 more times, my conclusion is correct. This book is a value and a significant contribution to the writings of how markets behave and how to use indicators to trade successfully. I recommend this book to serious traders and investors.

best book on day trading available
I've read most if not all books on day trading written the last couple of years. Most address the mechanics and processes concerned with day trading and neglect to provide what is most essential and that is techniques for identifying trading candidates and how to implement these into viable trading systems. Mssrs. DeMarks' book present s aplethora of worthwhile approaches. It's certainly not turnkey but what do you expect for the price of the book--the holy grail? One thing is certain the methods are original and can be dissected and applied piecememal to methods I have previously applied in the past. For anyone sincerely interested in day trading stocks, futures, or options, this book is a necessity.

Pleasntly surprised for two reasons
I wrote reviews today on the other two sites that had DeMark books for sale. I did not know this book was available. I told my trading partner about this discovery and he admonsihed me that this book has been available for a few years and that the book was even bette than the authors' two previous ones if for no otherreason is that the author's son helped iun simplifying the presntation. My trading partner told me to assign a 5 star rating and to recommend it highly. I am doing that now.

These are excellent trading ideas
I am a trader on the Chicago Exchange. I have also conducted commodity and stock trading schools. The ideas I have acquired from both the DeMarks are the curriculum of my classes. Originally, before being introduced to the DeMark methodolgy I relied upon the same trading techniques as all other traders. What convinced me to try the Demark techniques was the fact that someone told me that DeMark was the originator of a few of the all time trading favorite oscillators such as RSI. I wanted to know why he abandoned this indicator. It now makes sense to me--he has developed more accurate and sensitive trading tools that are more responsive to the rhythm of the market. They are indeed more valuable and help me and my students in trading.

This book can make me profitable.
I develop trading systems and have found many rich trading ideas described in the various chapters. I do not trade options often and elected to skim over the 1st half of the book. The back half has ideas for intraday trading as well as longer term trading. Al though the author does not serve these important ideas on a platter to a trader emphasizing thir relevance to successful trading, almost all discussions are packed with menajngful information and trading ideas that I can apply and test easily.
Bottom line: if you are looking for a black/whir turn-key systmeatic approach to trading, this book does not go that far. However, what this book does provide is a plethora of risch, new trading ideas that will definitely improve timing of trades. ... Read more

Book Description

Use this invaluable tool to gain a competitive edge and avert bad investment decisions.

Well-known options strategist and instructor George Fontanills has updated his time-tested and bestselling book, The Options Course. The new edition improves and expands upon the original to help you avoid some common and costly options mistakes. The systematic, step-by-step approach, covers everything from basic concepts to sophisticated techniques and is designed for investors at all levels of experience. ... Read more

Reviews (51)

A too optimistic pathway to rich... if there is one...
Mr. Fontanills provides in this book the foundations for delta neutral trading strategies using options and futures. The book has a quite long (too long in my opinion) introduction on how to get started in the market, in the broadest sense (from the difference between stocks and options, to how to make a good investment....)
Afterward, he moves deep into the details of option/future delta neutral strategies. This part is not a 100% easy read, so I would not say it is an absolute beginner book.
Although the contents are generally well discussed and presented I would urge you to work with a spreadsheet as companion, where you need to test all the formulas the author propose for break-even and profit. Doing that I found some incogruences.
Unfortunately, as a lot of trading books, also this one over indulge in promoting Mr. Fontanills professionale services, but, to be honest, this is less evident than in other books.

There is no such thing as low-stress money
I did not finish this book, because I lost interest in options trading and also became somewhat suspicious of the author's motives.
G. Fontanills repeatedly mentions how he will teach you to triple your money in a matter of days, what kind of luxurious cars he has, how easy it is to make truckloads of money using delta-neutral trading. According to George, all you have to do is relax, visit his website, buy more stuff from him, or even better attend his options seminars, several thousand bucks a pop. The road to "wealth without worry" is guaranteed. Or is it?

It is probably possible to make some money this way, but by no means is this approach "stress-free", and certainly not risk-free. Those who want easy money should try selling books and videotapes about get-rich-quick schemes with stock options.

If you want to get some useful ideas for your trading, then read "Reminiscences of a stock operator" by Edwin LaFevre, and "Trade your way to financial freedom" by Van K. Tharp.
Don't waste your time and money on books by G. Fontanills.

Disappointing
This is definitely not a beginners book.The pages that pretend to teach the basics are far too uninformative.And why the focus on futures versus options?It left too much out of focus, unless you want to learn about Delta Neutral Trading and hedging.

Recommended for serious option traders
This book might not be for beginners. However, it's not difficult to read if you have good math skills and traded in options for a while. I'm just a beginner in options trading and it was no issue reading it. It covers the basics about options, different trading strategies like vertical spreads. What makes the book great is using charts to describe the profit/loss zone for all different methods. This book opened my eyes on the concept of "delta". However, the book has no clear explanation of where "delta" comes from and it's impact on the profit you can make, or its value at certain strike prices. One way to see what the book describe is to look at the delta column for different strike price on live options chain quote screen. This is the most important variable for active option trading. It tells how much percentage of the move you will make if the stock moves say 5 points in you direction. To know more about options formula you need to look at the book "Black Sholes and Beyond" this book is all about mathematics for pricing options and not trading.

A Complete Insight Into The Options Course
George Fontanills devotes four of the 18 chapters on the delta neutral strategy.Excluding the detailed description of Fontanills' trademark strategy, the majority of the book is geared toward beginners. After providing a rather detailed description of how he entered the financial markets, Fontanills describes several of the economic factors that drive stock prices. Next he moves into the self-analysis section. This part includes information on risk profiles and margin concepts. Frequent readers of investment books will notice that many publications contain a chapter on this topic. Later, he moves into a discussion of options as an investment vehicle. All of the basics are covered, long calls and puts, short calls and puts, covered writes, naked positions, spreads, strangles, and straddles. Each of these is explained and then charted, for the visually oriented learner. Naturally, the gem of the book is the delta neutral strategy, which involves either a long or short straddle or strangle. The idea of the strategy is to help traders profit in both trending and non-trending markets, the latter of which is a very difficult concept for many people, thanks to the great bull-market of the 1990s.

The well-versed options trader will consider the book nothing more than a refresher course, as much of the material is introductory. In the four chapters which address the delta neutral strategy, Fontanills provides a thorough description of the system. After covering what he calls the "nuts and bolts," he discusses several more advanced strategies, including butterfly spreads, condors, ratio spreads, backspreads, and a few variations of each of these combinations. Fontanills finishes off with advice on placing orders and adjusting open positions.

There are two very important factors when considering all of the complex strategies presented in the book:

Are complex investments with three or more legs actually that much safer and profitable?
Do these strategies actually work in the real world, or are they only good on paper?

Many professional options traders will be the first to tell you that simply going long calls and puts are the two riskiest options strategies. Most that I know will tell you that they primarily trade two kinds of spreads, debit spreads: bull call and bear put, and credit spreads: bear call and bull put. Spreads containing three or four legs can be very expensive to open and close, because of the multiple commissions.Imagine opening and closing a four-leg position -- that would include eight commissions. This leads us to the second problem, the likelihood of actually finding these positions. Much like the works of Marx and Engel, it all seems so easy when its presented with laboratory conditions. In fact, in a world filled with rapidly changing prices and option values, it can quite difficult to achieve the perfect combination of price and delta value to actually open these positions. The more complex strategies like butterflies and condors, require a delicate balance of many factors, and as traders know, the more factors that there are to manage, the more difficult it will be to control.

The second piece of the package is The Options Course Workbook, which includes "step-by-step exercises and tests" to help people better understand what they have read.

While the advanced options trader may want to leave this one on the shelf, anyone looking for a great introduction to both both beginning and advanced strategies should definitely take a look at The Options Course. ... Read more

Book Description

When pricing options in todayÕs fast-action markets, you need quick access to precise facts and market-tested information. The Complete Guide to Options Pricing Formulas is the only authoritative, comprehensive reference to make the necessary set of option pricing tools available in one place. This invaluable reference work, which includes valuable software and ready-to-use programming code to enhance your understanding of the options pricing models discussed and their practical implementations, also gives you a complete listing of key options formulas, all in a dictionary format for ease of use; commentary from derivatives expert and author Espen Gaarder Haug that explains key points in the most important and useful formulas; practitioner-oriented formulas, andhighlights of the latest options pricing research from major institutions worldwide; and much more! Invaluable for both experienced users and those learning how to use the tools of valuation, The Complete Guide to Options Pricing Formulas is the first and only book to place all of the research and information you need at your fingertips with precise directions on maximizing its real-world value. ... Read more

Reviews (22)

A cookbook for the quantitative options trader
Have you ever wished someone took all the significant option formulas of the last 25 years and packed them into one volume? Is your calculus rusty? How about putting the formulas into Visual Basic so they can be employed directly in Microsoft Excel spreadsheets or Access databases. This is the main appeal of Option Pricing Formulas, which fills a void in current option literature. As option players became more computer literate an anthology of coded option theory was clearly needed.

The book covers everything from the tried and true Black Scholes and Cox/ Rubenstein formulas to the more exotic worlds of barrier and currency translated options. Software is included with the Visual Basic code as well as preprogrammed Excel files. Think of it as a cookbook for the technically oriented option trader.

Extremly useful
This book is extremly usefull and I would recommend it to everyone involded in quickly implementing new and complex derivatives securities. Some pricing formulas such as the three dimensional binomial trees are very refreshing tools to price all kinds of two asset options. The disk provided is simple of use, the financial notation is rigourous, the code is very accessible, and remarkably empty or programming errors ! It is very easy to customize the source code to price and analyse on a spreadsheet, all sorts of proprietary derivative securities.

Numerous technical mistakes
I have reviewed many of the formulas in several sections of this book and have found a number of mistakes. As a result, I can trust no formula from the book without reviewing the literature or some other source.

The author does not use consistent terminology throughout the book. Rather, the terminology of the original journal article is used for each pricing model. This makes referring to the articles convenient, but then you don't need the book if you're going to the source...

I have used few of the computer programs offered, but the ones that I have used have had terrible inefficiencies. For example, a bisectional iterative search was used, which is very simple to write but is also very inefficient. There are many other simple and more efficient alternatives.

THE Reference Manual
Fantastic reference manual for the most basic to unusual options. Well organized making it easy to find what you're looking for. If you're looking for derivations of models, you've got the wrong book. If you're looking for formulaes and perhaps even spreadsheets, this is the book for you.

I know of no other book as comprehensive as this book. I don't know if there will be a revised edition, but if there is, I will certainly buy it since this is, in my mind, the definitive reference manual.

Almost All Options Covered
This book addresses most of the issues in pricing options. It doesn't cover features which have a real affect on value, however. Legal, language, cheapest-to-deliver, and documentation issues which affect pricing for credit derivatives aren't factored into the analysis, and these options are a huge and growing part of the derivatives market.

There is a new book coming out by Schonberg on credit derivative modeling. For more complete coverage of those issues, I highly recommend Tavakoli's book which gives practical examples to illustrate the meaning behind the models. It's called "Credit Derivatives and Synthetic Structures". ... Read more

Book Description

If you’re like the majority of the estimated 12 million employees in the U.S. who have stock options as a key component to their compensation packages, you have a vague notion, at best, of how options work and what they can mean to your financial well being. What’s the vesting schedule for your shares and how will their strike price be set? What type of stock option grant will you receive, an ISO (incentive stock option) or an NQSO (non-qualified stock option)? What tax rules apply to your option program? Your financial future could depend on your knowing the answers to these and other questions regarding your company’s stock option plan.

Confused by all the brouhaha surrounding stock options? Let expert Alan Simon demystify this often-confusing investment vehicle for you. Featuring clear explanations of how your stock options might make you money—or not—this friendly guide fills you in on what you need to know to:

• Understand different types of stock options
• Read and find traps in your stock option agreement
• Evaluate the pros and cons of company investment vehicles
• Assess vesting schedules and tax laws
• Tap Web resources

Simon demystifies the jargon, rules, and tax consequences of stock options. He provides a realistic picture of what to expect from your options, and he helps you see past the hype to understand what your employer is really offering. Important topics covered include:

• What you need to know before accepting a compensation package that includes options
• Developing a stock option philosophy and clear-cut goals
• Knowing whether you’re being treated fairly by your company
• Making sense of the language of stock options agreements
• Getting a handle on key restrictions on how you exercise your options
• Stock option valuation
• Tax rules and how they apply to different types of options
• How stock options can be affected by changes at your company

Stock Options For Dummies is the only guide you’ll need to get the most out of this important investment vehicle. ... Read more

Reviews (4)

This is not what I was looking for.
I was looking for a "dummies" book on options trading (puts, calls, volatility, etc.) so I ordered it. What I got was a comprehensive review of the ramifications of owning stock options issued by the company that employs you. In short, I felt like a dummy for not researching further before purchase. Don't make the same mistake I did. There is a silver lining, though. I promptly repackaged the book in the shipping box that I received it in and sold it through Amazon, recouping almost all of my original cost. If you have any books you don't need or want, I wholeheartedly endorse Amazon's used book marketplace. I gave it 5 stars because of this experience, and the fact that it is another top-notch example from the excellent Dummies series, just not what I was looking for. Incidentally, if you're looking for what I was looking for originally, you can't go wrong with anything Larry McMillan has written.

Well rounded discussion on every facet of options
A well rounded discussion on almost every facet of options, from how to understand the legal implications of the stock option plan to taxation. Simon explains preIPO, IPO, lockup periods, blackout periods, Rule 144 stock in detailed and desciptive ways. The chapters on taxation give an excellent overview - even of the 83b election and is probably sufficient for most. For more comprehensive discussion and tax strategy read Pastore's book.

Every option-holder should read this book!
By far, the best, most thorough, and most honest book on stock options I've ever read. Even though other books (such as Pastore and Thomas) cover taxes on stock options in more detail, the author definitely provides more than enough information, including considerations I've never seen elsewhere - ordinary income tax and AMT implications of working in multiple states, for example. And he covers the dreaded AMT trap of ISOs with detailed scenarios, better and easier to understand than I've seen anywhere else. But by far, this book's greatest value is in the author's no-holds-barred discussion of - as he puts it in one of the chapter headings - the good, the bad, and the ugly of stock options, including an entire chapter on stock option agreements and what to watch for. Like most Dummies books, there is humor and sarcasm, but the author doesn't overdo it; it just makes the book extremely readable. Even those who have had stock options in the past - whether or not they made money or not - will find value in the author's fresh perspective and post-crash look at just about everything about options.

Well written, but flawed
This book has great layout, good writing, and simple presentation. Unfortunately, it also has a number of technical erorrs about how stock options work, as well as an excessive focus on options in pre-IPO comanies (most employees with options do not work for pre-IPO companies, or even technology companies). ... Read more

Book Description

Finance is one of the fastest growing areas in the modern banking and corporate world. This, together with the sophistication of modern financial products, provides a rapidly growing impetus for new mathematical models and modern mathematical methods.Indeed, the area is an expanding source for novel and relevant "real-world" mathematics.In this book, the authors describe the modeling of financial derivative products from an applied mathematician's viewpoint, from modeling to analysis to elementary computation. The authors present a unified approach to modeling derivative products as partial differential equations, using numerical solutions where appropriate. The authors assume some mathematical background, but provide clear explanations for material beyond elementary calculus, probability, and algebra. This volume will become the standard introduction for advanced undergraduate students to this exciting new field. ... Read more

Reviews (15)

Practical, easy-to-read and useful
This book is an excellent introduction to the use of finite difference and binomial methods to the pricing of equity options - regular and exotic/path-dependent. Requires only undergraduate calculus, and provides some intuition about the finance. Has exercises and solutions for people who want to learn. The "parent" book (Option pricing: mathematical models and pricing by P. Wilmott) has more information (although a little pricey!), is in fact used by financial "quants".

Only one snag
There is no portfolio analysis which ,I think, is basic to any book in financial math.

Read Hull Instead
It seems the examples in this book are clones of those found in Hull. Odd, since the author seems to want to use more sophisticate math. Since the author can't explain calculus or properly define terms, there is doubt there is even that basic understanding. Pass on this and buy Hull instead for better clarity and better examples.

Copied Equations
Wilmott seems to have copied theoretical derivations using partial differential equations and matrix multiplication symbols. The only examples in the book use basic algebra, so it seems as if the authors don't understand how to apply theory to practice except in the most simple cases.

This book is irritatingly bad. Terms are not well defined. There are no concrete examples following the derivations as if the authors don't understand the meaning of the equations.
The information on options seems to have been copied from the many derivatives dictionaries available on the web. It's clear the authors don't know how to apply the math to price these options. It seems their understanding is equivalent to that of a parrot.

Excellent Student Introduction
This book covers the formulas describing the mathematics of derivatives, and does a good job of it. It introduces the basic concepts in a fairly comprehensive form. I also bought and recommend "Credit Derivatives" by Tavakoli, and "Credit Derivatives Pricing Models" by Schonbucher. ... Read more

Reviews (5)

The best nontechnical introduction book on Derivtatives
Hull wrote a classic book for the introduction to futures and options markets. It's for the serious reader who doesn't want to all the deviations and basics of option pricings. If, after reading this book, you're still interested in derivatives you cann proceed with Hull's "Options, Futures, and Other Derivative Securities", Kolb's "Futures, Options, and Swaps", or for the very ambitious student Wilmott's "Derivatives or Quantitative Finance".

Excellent book, must have for finance nuts.
The material is similar to his other book, Options Futures and Other Derivatives, but much more easy to read. With Brealy & Myers, this forms a good complementary text.

A must read for finance specialists
If you dont understand what the words Futures/options are and you want to know it, this is the place to start. hull(from McGil i think!) has excellently presented information on these subjects for the student as well as for the practitioner. As a student of MBA(finance) this was the prescribed text and I can safely say this compares with the best. sepcifically this book deals with the entire gamut of Futures/Options/Swaps with mathematical models where required. From CBOT to this day!!

Great introduction book but...
I reommend readers who are familiar with the derivatives should buy Hull's "Options, Futures and other Derivatives" since it goes faster trough the basics and covers more advanced topics.

The book that I prefer
This is the clearest book about futures markets. If you don't understand about this theme, you have to read this book. It's really easy. Specially if you don't speak english (the vocabulary is limited, fortunatelly). Este es el libro más claro acerca de los mercados de futuros. Si no entiendes este tema, tienes que leer este libro. Es realmente fácil. Especialmente si no hablas inglés (el vocabulario es restringido, afortunadamente). ... Read more

Book Description

Eurodollar trading volume is exploding, with no end in sight tools phenomenal growth. The Eurodollar Futures and Options Handbook provides traders and investors with the complete range of current research on Eurodollar futures and options, now the most widely traded money market contracts in the world. The only current book on this widely-followed topic, it features chapters written by Eurodollar experts from JP Morgan, Mellon Capital, Merrill Lynch, and other global trading giants, and will quickly become a required reference for all Eurodollar F&O traders and investors.

Reviews (2)

The Standard!
Clearly the best book on Eurodollar futures and options. The book is a must for anyone involved in fixed income securities.

Highly recommended
Having just finished reading the author's treatment of bond futures in the 'Treasury Bond Basis,' I was happy to see that Burghardt was updating some of his material from the early 1990s on Eurodollar futures. The 'Bond Basis' was an excellent and thorough analysis, and 'The Eurodollar Futures and Options Handbook' follows the same trend.

He provides an excellent overview of the institutional details of Eurodollars and their uses. The book is at its strongest when dealing with issues of the convexity bias and also scores high by not neglecting important issues like the stub period. Perhaps my favorite chapter was on callable bonds and the extension/compression risk, which, while a little misplaced in a book on Eurodollars, still provided a very lucid explanation of the relevant issues.

With regard to options, the author touches upon some of the interest strategic combinations using serial and mid-curve options, but I feel that he could've delved a bit deeper in this part of the book. It's the only area in which I felt the book was somewhat lacking.

Having said all that, if you're looking to learn about Eurodollar futures, I can't imagine there's a better book out there. This is an excellent compilation of a number of Burghardt's research from the 1990s together with more recent updates. Even if Eurodollars are not your main area of expertise, this book will still help you to gain a more solid understanding of many of the pertinent topics in fixed income. ... Read more

Book Description

Praise for Real Options Analysis Course

"Dr. Mun’s latest book is a logical extension of the theory and application presented in Real Options Analysis. More specifically, the Real Options Analysis Course presents numerous real options examples and provides the reader with step-by-step problem-solving techniques. After having read the book, readers will better understand the underlying theory and the opportunities for applying real option theory in corporate decision-making."
–Chris D. Treharne, President, Gibraltar Business Appraisals, Inc.

"This text provides an excellent follow up to Dr. Mun’s first book, Real Options Analysis. The cases in Real Options Analysis Course provide numerous examples of how the use of real options and the Real Options Analysis Toolkit software can assist in the valuation of strategic and managerial flexibility in a variety of arenas."
–Charles T. Hardy, PhD, Chief Financial Officer & Director of Business Development, Panorama Research, Inc.

"Most of us come to real options from the perspective of our own areas of expertise. Mun’s great skill with this book is in making real options analysis understandable, relevant, and immediately applicable to the field within which you are working."
–Robert Fourt, Partner, Gerald Eve (UK)

"Mun provides a practical step-by-step guide to applying simulation and real options analysis–invaluable to those of us who are no longer satisfied with conventional valuation approaches alone."
–Fred Kohli, Head of Portfolio Management, Syngenta Crop Protection Ltd. (Switzerland) ... Read more

Book Description

An introduction to the complex world of options that every investor can use

Too many books on options trading make the mistake of assuming that readers can already tell a delta from a sigma summation. Options and Options Trading breaks the code that envelops the often-foreign language of options, providing an accessible introduction into how the options market works as it explains the rules that traders must understand if they hope to take part in this high-leverage, high-profit game. Author Robert Ward's goal is simple--to demystify the tangled world of options trading without leaving readers too confused and frustrated to continue. The book to read before continuing on to the more detailed, and much higher-level, existing library of options trading guides, Options and Options Trading features:

• End-of-chapter material including "Things to Think About" and "Key Concepts"
• Simplified explanations of complex mathematical equations
• Step-by-step rationales to help readers move from basic to complex

Book Description

Discover a practical trading strategy that combines options and ETFs.

Create Your Own Hedge Fund explains how exchange-traded funds can be used in conjunction with an options strategy to attain steady growth. Beginning with a tutorial on options and ETFs, the book goes on to describe both investment approaches in great detail providing you with a trading strategy that generates higher returns than buy-and-hold investing -- and allows you to reduce risk by adopting a hedging strategy. Filled with in-depth insights and expert advice, this book is intended for you if you're a sophisticated individual investor or a professional investor, trader, or other money manager looking to update your arsenal of investment tools.

Order your copy today! ... Read more

Book Description

The trading strategies of legends Jesse Livermore, Bernard Baruch, Gerald Loeb, and more provide ways to triumph in the market

Today's bookshelves are so laden with Johnny-come-lately experts, eager to sell their knowledge to any and all, that it's sometimes hard for traders to know which way to turn or whom to trust. Lessons from the Greatest Stock Traders of All Time makes the choice simple, examining the careers of five traders--Jesse Livermore, Bernard Baruch, Gerald Loeb, Nicolas Darvas, and Bill O'Neil--who, more than any others over the past century, demonstrated tremendous success at conquering Wall Street.

This technique-filled book presents numerous ways in which the timeless strategies of these investing icons can be used to tame today's high-speed, unforgiving marketplaces. Comparing and contrasting the successes--and occasional failures--of these five giants of finance, it reveals:

• What Jesse Livermore did to correctly call every market break between 1917 and 1940
• How Bill O'Neil stuck to basics to create his famously effective CANSLIM system
• The strategies Nicolas Darvas used to become a self-made millionaire several times over

Reviews (2)

GREAT!!!!
I love Bill O'neil and his philosophy. I am very successful over a period of time using his system. Those other guys in this book who have come before him are amazing also. This books is one of the few that you should read more than once.

Great Book!
Thanks for bringing back to life the great traders of Loeb and Darvas. Great link to the similarities of the best traders over 100 years. Excellent profiles of the legends and how their strategies are the ones to use to profit in stocks. ... Read more

Book Description

A practical, hands-on guide to setting up, adjusting, and trading mechanical systems that requires no computer or programming skills! Here’s everything you’ll need to develop and verify each stage of a profitable trading strategy, from formulation through testing to real-time trading. Armed with the author’s battery of easily accomplished testing and optimization techniques — many never before published — you’ll design a workable trading strategy, reliably measure its profit potential and risk, and then test it to see if it works in real-time trading. No matter what your level of trading expertise, now you can swiftly isolate and eliminate the causes of trading failure and make the decisions essential to profitable computerized trading. You’ll discover:

• The seven major components of mechanical trading strategies and their uses
• When and how to use fast, accurate, and realistic computer simulations to evaluate a strategy’s trading performance without risking precious capital
• The best ways to tailor a trading strategy to fit the unique personalities of widely different markets
• What to expect from a trading model in real-time trading
• How to judge trading performance with respect to historical testing performance

Reviews (4)

Authors' Comments
I am pleased to note that many still find my book published in 1991 to be useful and informative.

However, I might suggest to any who come to these pages to be wary of the claims made by the vendors in the sponsered links on this page, especially the last two.

I suspect that it would be prudent for a trader who is considering one of these trading systems to apply the principles of trading system evaluation provided in my book to theses claims before becoming involved with these trading systems.

Bob Pardo

Excellent how-to on applying simple statistical analysis
A great instructional book on the application of statistical analysis to trading systems. It's excellent for novice trading system developers who don't yet understand the importance of rigorous testing or discretionary traders who aren't yet aware of their need for a carefully and thoroughly tested trading system--a real eye-opener. While the text is somewhat repetitive and the references to software are extremely dated, the techniques within are timeless and are boiled down so that non-mathematicians can easy understand and apply them. This book helps you bypass the slow process of learning system development by trial-and-error and gives you a clear step-by-step breakdown of how to ensure that your trading system is sound and &qu