Book Description

he over-the-counter market in exotic options continues to expand both in volume and complexity. This book brings together leading international experts in an authoritative, practical and up-to-date guide to the valuation and hedging of standard exotic options. It is the first to explore each type of option in detail and will be the definitive handbook for all those who need clearer practical understanding of these sophisticated instruments. Despite this, comprehensive sources of information on exotic options are very sparse. As far as pricing is concerned, there are a few methods for some of the very simplest exotics published in the academic literature and a few more in the trade journal.In this book we present a collection of papers written by practitioners and academics working in the area which will provide a comprehensive source identifying the uses of exotic options from a risk management perspective, and how they can be practically priced and hedged. ... Read more

Book Description

Every trader will appreciate this reliable, realistic, and systematic approach to trading financial and commodity markets. In a step-by-step manner, the author applies a rigorous mathematical discipline to finanical speculation and explain how to analyze markets, forecast price movements, develop trading strategies, and manage trading capital. Kase also unveils several highly sophisticated indicators that are far more precise than conventional technical indicators. Unlike most books on trading, Trading with the Odds contains complete coverage of money management, including the author's own ``Kase Dev-Stop,'' a highly calibrated money management tool. Trading with the Odds also includes: Uses and abuses of conventional technical analysis; New technical indicators for analyzing markets and entering trades. ... Read more

Reviews (15)

A Serious Professional - Excellent Work!
For any trader looking for real concrete answers and positive direction in technical analysis, this is the book to read! Ms. Kase is able to break down the main elements of the markets into easy to understand terms and logically explains how and why her approach and methods work.

Her impressive successful background and experience cannot be disputed; this shows in her work. There are many weak "black box" systems for sale out there - this is not one of them. The Kase indicators and methods to trading in the markets are not limited to specific periods in time, nor are they limited to specific markets; this is the fundamental basis for their solidity and amazing accuracy.

Her "Dev-Stop" and "PeakOscillator" are excellent tools! I highly recommend this book and the fine work of Ms. Kase to any trader serious about trading using technical indicators.

Statistics approach to the markets - Excellent
I ordered this book and then devoured it twice. I disagree with other inputs that the book does not provide details for the indicators. Ms. Kase is extremely open in disclosing the math and logic behind her technical indicators and her overall approach to the markets via statistics. With little study, one can easily derive her mathematical approach. The chapter explaining standard deviations was worth the price of the book alone. Having taken a post-graduate level statistics class, I found her explanation of standard deviations and statistics to be the best I've ever read to explain the math. You do not need to be a math whiz to understand her approach because of the easy-to-understand explanations. If you trade using standard deviations, this is a "must-read" book.

Good ideas, average book
I like this book because it uses some similar methods that I already incorporate into my trade. Using Elliot Wave to form a possible pattern in the near future and create a bias , and then using an indicator as a filter for an allowance of trade ("permission"). Kase develops a number of oscillators, stop variation and so forth that are custom to her and requires you to buy it from her webpage . That part is a bit annoying, especially when I doubt the indicators are any less useless than all the others out there. Nevertheless, this is a decent effort by a profitable trader and that alone is reason to take a look at it.

Deception Abounds!!
Kase is a very smart woman, unfortunately she has hooked into the hype and "guru" mentality that is the financial community for futures. ...it is a mere proxy for getting you to buy her software. Save your money!!

I agree, listing systems in the back portion of the book showing spectacular profits that are based on trading unrealistic quantities(250) is purely eye candy. I wonder if she pulled some of this some stuff in her "distinguished education" classes.

I was deceived. It's just an advertising folder.
This book by Cynthia Kase is intended to provide you with "the power of statistics to profit in the futures market". To acomplish this, she proposes the "kase permission stochastic" in chapter 4, the "kase peakoscillator", "peakout line" and "kaseCD" in chapter 5, and the "dev-stops" in chapter 6. But the unbelievable is that she hides all the mathematics required to calculate those indicators. Very disappointing. I was deceived. ... Read more

Book Description

The leverage and profit potential associated with options makes them very attractive. But you must be prepared to take the financial risks associated with options in order to reap the rewards.

The Option Traders Guide to Probability, Volatility, and Timing will introduce you to the most important concepts in options trading and provide you with a working knowledge of various options strategies that are appropriate for any given situation. Whether youre a new trader or "returnee" to the options market, this book will not just teach you about options, it will teach you how to successfully trade them.

This comprehensive trading guide includes:

• An overview of the most valuable uses for options
• An introduction to basic option terminology
• An explanation of the most useful trading strategies available, including risk curves, and the conditions to look for when determining which strategies to employ
• Guidelines for exiting a trade at a loss and exiting a trade at a profit
• And much more

In clear, easy-to-follow terms, The Option Traders Guide to Probability, Volatility, and Timing arms you with the facts you need to understand options as well as choose and use profitable options trading strategies. From time decay, market timing, and volatility to naked options, covered calls, and butterfly spreads, this comprehensive guide will help you trade options intelligently and confidently. ... Read more

Book Description

"This book will let you see the little-known but effective trading tactics and methods of today's top market makers."--Technical Analysis of Stocks and Commodities

Active traders must get inside the head of the all-important market maker--"The Ax"--before they can begin to truly compete.

The Market Maker's Edge, written by longtime ax Josh Lukeman, is the first inside look at how axes think, what they look for, and, most important, how they can be beat.

Reviews (39)

Informative book
I thought this was an excellent read to for someone like myself who admittedly is just getting started in daytrading. It covers a lot of ground and educated me to among other things, Japanese candlestick charts, how market makers work a big institutional order, how to use oscillators against a price chart, scaled entry and exit techniques. It also continually harps on the need to listen and follow the market rather than try to outguess it. Perhaps to battle hardened trading veterans this is old news, but for someone in my shoes you can learn a lot from this book. I also like his "keep it simple" attitude and the idea the best traders don't get lost in all the data overload, they just execute well on some fairly simple basics. The book is actually not so much about market makers as it is on developing the skills & knowledge base needed to be a sucessful daytrader, so I would have to say it is somewhat mistitled.

Misleading title, lacking actual mechanics of MM trading
Although this book contains useful techniques to increase the novice trader's knowledge about trading, no market maker techniques and strategies are actually even mentioned in the book. In markets such as the NYSE, AMEX, etc. specialists (market makers) are privileged with the knowledge of every single order that comes across for the securities that they are trading. These specialists are then able to use this "information" to trade profitably. A recent WSJ article (March 2001) reports that specialists on the floor of the NYSE are making more money than EVER. On the NASDAQ, market makers use Level II and Level III "information" to make profitable trades. It is widely believed that 95% of market makers NEVER lose money and that 95% of individual investors (wannabe traders) ALWAYS lose money. So what does that mean? Trading is a zero sum game, somebody has to lose (YOU), and somebody has to win (MMs). This book should have talked more about how to trade (and win!) like a market maker, and not about old moving averages, macd, and what nonsense that individual investors (wannabe traders) use to lose money day in and day out. Market makers actually use ma's macd's and other technical signals to find out what the ignorant public is likely to do and use that information to trap and make money off of them. They know where the public puts stop orders, so they'll find an opportunity to dump/short stock, temporarily triggering sell pressure, then accumulate shares as the price drops to cover their shorts. Of course MMs use many other strategies to make money (that I don't know of), but this is an example of the mechanics of trading as an MM and this is their "edge". As none of this crucial information is even mentioned in the book, I feel three stars is actually quite generous.

A Bad Investment
I was hoping to get the inside scoop on how the robber barons, I mean market makers, colluded in nefarious activities to rip off the public. I expected chapters on payment for order flow, trading ahead of large customer orders, surreptitious ECN 100 share orders that refill to infinity, price fixing, holding market orders for 30 minutes then turning the stock price the other way (this actually happened to me once), etc. What I got was a primer for people who don't know what a dead cat bounce or double top is but, nevertheless, think they are smarter than the consensus and want to throw their money at the market.

The section devoted to psychology was excellent. The rest I could have done without. I wonder how market makers can make money nowadays with the spread basically nonexistent in most stocks and the NASD more vigilent on enforcement. Maybe in his next book we will find out.

Not too bad..
Positive aspects of this book:

- provides great common sense / simple ideas regarding some market basics (don't get me wrong, common sense / simplicity is probably one of the keys to becoming a top trader);
- quite well written / organised; and
- covers basically all the key areas a trader would need to know

Problems:

- charts are really badly referenced.. eg some are on other pages, some are incorrectly dated in the text, some are just plain ambiguous when referred to; and
- as an experienced trader, i didn't really learn much especially the commentary from the market maker's point of view, since it is usually quite obvious and common sense based.

Gotta say though, this is a good value book and would be OK to read as one of the beginner texts..

Learn the mind of a market maker
I really liked this book, but I had to ignore significant portions of it to do so. If you parse the new age inspired psychological section and the tepid discussion of technical indicators that are anecdotal in nature and unsupported by research (I have been spoiled by "trading classic chart patterns" and "practical speculation"), then you might like it too. While it may be unfair to compare this book to the others since this book predates them, I will be forever testing what I read by those standards.

I really value his anecdotal explanation of what he did as a market maker and how he traded. I think there is real value to know the mind of the market makers that have to make a living in the market everyday by accepting risk. If you can rework your trading to trade WITH the order flow that market makers have on their desk, it will be a much easier ride. Obviously, there is no way for a third party to exactly know what is on a market makers desk, it may be interpolated from their actions. This book provides a perspective that I have not found in other trading books. ... Read more

Book Description

With the low cost of modern computer hardware and software combined with the communication of price data via satellite, a new and rapidly expanding market of traders using computers has developed. This essential book bridges the gap between the basic instruction that comes with software programs and what a trader actually needs to know to develop and text profitable futures trading system. With specific information on how to set up and use computer-generated technical studies of the most popular indicators, the book includes: How to build a trading system tailored to the reader's specific need; Practical instruction on how to display and analyze technical information; Advice for developing well disciplined money management and risk control strategies; techniques for monitoring a trading system to detect if something has gone wrong before major losses occur. ... Read more

Reviews (6)

Excellent Book
This book gets a 4 stars rating because of its expensive price (the book is only 220 pages and full of empty spaces). But, price is always subjective. You may treat it as the cost of your education.

Anyway, what makes this book so very valuable is the fact that it is easy to read, clear, definitive, and yes it has so many valuable information on what parameters to use for each indicator. How many of you left confused on what parameters should be used? This book will definitely clear away the clouds in your mind.

LeBeau has done extensive research on indicators such as ADX and his insights on other popular indicators are extremely valuable.

The title may be slightly misleading because bulk of the contents is explaining each technical indicator (120 pages), while only 45 pages on explaining how to build a trading system. Yet, it is clear and concise.

The final Chapter is also valuable. It deals with 12 Day Trading systems that the author has selectively chosen out of all day trading ideas he has or has received from other great traders.

ok
If you like this sort of thing sure go for it. I don't but well written

Many concrete tips
I only discoverd this pretty old book recently. I am suprised to find there are quite a lot of trading tips. What make this book stands out of the crowd is the tips were very concrete and practical. The discussions about exit and stop loss are parcticular good. Many other books just said cut the loses quick. How quick? When? This book gives you some hints. The authors also give some tricks in using indicators which I hope I could know earlier.

You should buy this.
I know Charles Lebeau. He does occasional system seminars with my father Dr. Van K. Tharp one of the "Market Wizards" and author of Trade Your Way to Financial Freedom. Charles Lebeau is a great trader. When anyone ask me about a technical indicators book this is the one. Charles is very through. He noticed the best traders in the industry are usually right 30% to 40% of the time. They just cut their losses short and have these huge winners. Charles tested most of the major indicators against random entry i.e. (Flipping a coin) most of them don't do any better. Your exits, psychology, and money management determine if you are making money or not. Don't pay too much attention to your entry. This book explains his results and how to use each indicator. Almost any indicator will work with proper money management. I done well even with flipping a coin and the right stop. The indicator best for you is one you feel comfortable with and will stick with. BUY THIS BOOK and hopefully what I wrote may make some sence to you.

Decent Info on TA
This book is nothing special. I really disagree with the author's interpretation of the ADX indicator. Absolute level is far more important than slope. The day trading systems shown will lead you to the poor house in no time. Presents some novel ideas though. ... Read more

Book Description

An indispensable resource for experienced and novice options traders and hedgers alike Dynamic Option Selection System "Howard Simons offers an in-depth look at options and risk management for the serious market participant. He uses his extensive experience as a trader and trading systems designer to provide ten basic principles that are at the foundation of every successful trading methodology." -Leo Melamed, Chairman Emeritus and Senior Policy Advisor, Chicago Mercantile Exchange; Chairman and CEO, Sakura Dellsher, Inc. "Howard Simons's engaging, colloquial manner makes The Dynamic Option Selection System: Analyzing Markets and Managing Risk an enjoyable read for even the most accomplished professional hedger. His ample use of real-life stories, like parables, illustrate the nuances of trading and the complex and opposing interests of buyers and sellers in the marketplace." -Jack Wing, Executive Director and Professor, Center for Law and Financial Markets, Illinois Institute of Technology "It is the risk of potential reward that motivates many traders in today's markets. Employing Howard's ten simple principles allows us to 'put ourselves in the position where the accidents will work in our favor' so that we can remain 'In the Game'." -Bennett J. Corn, President and CEO, Winnipeg Commodity Exchange; Former President, Coffee, Sugar & Cocoa Exchange, Inc. ... Read more

Reviews (3)

Outstanding Book
Howard Simons' book is a tremendous resource for beginners and market professionals alike.I don't know who this jerk is who panned the book, but he obviously has no idea what he is talking about and ,furthermore, iscompletely incorrect in his criticisms.All of the equations in this bookare correct.

Almost useless and certainly confusing!
I was hoping for better when I obtained the book. I can't believe this guy (the author) went to U.C. Some of the ideas that he presents are interesting and worthwhile to pursue, but he does a poor job of presentingthem. The author took bits from each class that he attended at U.C. andforced them into an incoherent story. Many of the equations that heintroduces are plain wrong, e.g., (2.7), (2.8), etc. Those that are correct(2.11) are presented in a most obtuse way so that one is left wondering:"what is Simons' talking about". For those who are nottechnically inclined this is a travesty. How are they supposed todifferentiate the baloney from the fact. I understand that this is a"traders' book", but there are many better ones out there! Comeon Howard, come on Wiley, you can do better than this.

Excellent.Lots of great insight
Simons book goes beyond the obvious "how do" on options -- which is exactly where more writers leave off.He is able to take very obtuse institutional topics like behavioral analysis and apply them to intermarketanalysis.This is an excellent book for the more sophisticated trader whowants to learn more about options trading in all markets, includingfutures.Great read and well worth the price. ... Read more

Book Description

Finally, a book by an author that understands what the average investor needs! The information in this book will give you the ability to make money using real tried-and-true techniques. No special knowledge required, no strings attached. These tools can help you secure real wealth-not through get-rich-quick schemes, or any other tried-and-failed method, but through large cash returns from the stock market. ... Read more

Reviews (36)

You'll want to add this one to your library
Wall Street Money Machine-Stock Market Miracles is an excellent companion to Wall Street Money Machine for the new millenium. It goes beyond WSMMFTNM and covers more information like selling puts and tandem plays. As for the advertisements, I think the bashers mean testimonials and whats wrong with listing success stories? I enjoyed this book and made money with the strategies. Recently, I bought puts on Cpq for 1/16 and sold them for 7/16 five days later using the peak strategy that Wade talks about. I knew Cpqs run wasn't sustainable based on valuations of their stock.There is a wealth of information in these books. Use them and benefit from them.

There may be other books, but are they better?
There certaintly have been a lot of books on stock market investing released since Wade Cook's first book came out. Isn't it interesting how quickly imitators jump on the bandwagon of a popular topic, but only after someone else has paved the way?

As for the 1 star reviewers, I would be very skeptical of people trashing a NY Times, USA Today and WSJ best selling author. Who are they representing?

Wade Cook's techniques flat out work. And obviously there is alot of money to made in selling stock market investing. Just look at all of the Wade Cook imitators, books, tapes and seminars that have popped up lately.

Wall Street Money Machine Vol 2 is a great book for any serious investor.

Sorry, I hate to see an accomplished teacher, writer like Wade Cook get treated undeservedly. I guess I'm "old fashioned" that way.

More strategies by Wade
In this second in a series of books on cash flowing the stock market, financial expert Wade Cook goes even deeper into his revolutionary strategies. You'll read more about covered calls, rolling stocks, stock split exit strategies, naked puts and more. This book will put your cash flow on turbo charge!

Demystified option trading for me
Before buying this great book by the great Wade Cook, I knew nothing about trading, the stock market and thought options was a choice on which stock to buy. WADE COOK helped demystify the whole darn thing for me. Trading became easy, fun and very profitable. Even without knowing what I was doing completely, I was able to make 200%-1000% annualized returns.

This book is different than Wall Street Money Machine VOL 1. It covers trading much more completely. Another winner from Wade.

Good followup to Wall Street Money Machine Volume 1
Wall Street Money Machine Volume 2 picks up where Wall Street Money Machine vol 1 leaves off. There is more powerful information on stock splits, options, rolling stocks PLUS Wade goes on to discuss the why and how of trading puts. He also offers tandem plays, mixing strategies and more.

Vol 2 is not just Wall Street Money Machine on another cover. Itis different. More complete. Goes deeper into the strategies of how to cash flow the stock market successfully.

Read this in addition, not in place of vol 1. It's a great addition to any serious investors library. ... Read more

Book Description

Praise for Cybernetic Analysis for Stocks and Futures

"If John Ehlers writes it, I read it. He’s that brilliant."
––Larry Williams
trader and author of Commodity Timing

"Cybernetic Analysis is a treasure of new and innovative ideas. John Ehlers has put aside the traditional mathematics of cycles and written a totally readable, thought-provoking, and user-friendly book on new indicators and trading methods. I particularly liked his work on the Fisher Transform, probability distributions, and true lag, which are a great contribution. This is a must for all analysts."
––Perry Kaufman
author of Trading Systems and Methods and A Short Course in Technical Trading

"John Ehlers ranks with Art Merrill as the best quantitative technical analyst of the twentieth and, probably, the twenty-first century. The success of his insight–employing digital signal analysis–is fully demonstrated in this volume, a worthy addition to his earlier, Rocket Science for Traders. For substantive, fully disclosed techniques you can use every day, this material is the best there is."
––John Sweeney
former editor of Technical Analysis of Stocks & Commodities magazine

Breakthrough Trading Tools–and Updated Applications–for Dramatically Increased Forecasting Accuracy in Every Market

Over the past two decades, John Ehlers has built a worldwide following with his unprecedented ability to combine the scientific knowledge of an engineer with the instincts of a top trader. In Cybernetic Analysis for Stocks and Futures, Ehlers–author of the groundbreaking Rocket Science for Traders–introduces serious traders to all-new methods for applying digital signal processing techniques to market forecasting.

Let Ehlers’s latest book show you how to:

• Obtain accurate cycle measurement within five samples
• Make indicators adaptive to market conditions using the measured cycle period
• Sharpen market turning points by manipulating the Probability Distribution Function using the Fisher Transform
• Discern the onset of trend modes and cycle modes
• Generate dependable buy and sell signals in any market

Cybernetic Analysis for Stocks and Futures combines all-new indicators with innovative uses of proven indicators to give you that rare edge that makes trading more pleasurable and profitable, in virtually every market and environment. ... Read more

Reviews (1)

An Outstanding Book On The Market!!
John Ehlers has again written a book that I believe is detined to become an "investment classic".

I have three things I look for in investment books and newsletters:
1) Original Research
2) Explained Methodology
3) Actionable Strategy

Many books deemed "classics" fail to meet one or more of these criteria. Very few meet all three. John Ehlers is rare in achieving all three with his works.

1) Original Research - Original research is key to being successful in the market. A technique that everyone knows is unlikely to work very well for trading or investing. Ehlers is a pioneer in applying advanced cycle measurement theory (MESA - Maximum Entropy Spectral Theory) to the stock market. In Cybernetics he extends and builds on his cycle work by also applying very advanced and sophisticated Digital Signal Processing (DSP) techniques to trading the market. More information on Ehlers MESA work can be found at www.mesasoftware.com. To my knowledge there is no one else using and reporting on the application of DSP to the market.

2) Explained Methodology - In my opinion this is where Ehlers really shines. While these DSP techniques are extremely sophisticated and mathematically intense, Ehlers cuts to the chase in a very concise fashion, explaining the core principles, presenting the math, but leaving the derivations and complication to the textbooks and the engineers. Ehlers makes the techniques acceessible to the trader/investor without trying to turn the reader into an Electrical Engineer.

3) Actionable Strategy - all the tools presented in the book are fully disclosed and accompanied by complete TradeStation Easy Language Code and eSignal Formula Script (EFS). In addition the code can be purchased from www.mesasoftware.com for a modest cost, to save yourself the typing and debugging time (your time is worth something). I use TradeStation. With the fully disclosed code, all of the indicators can be displayed, modified (if desired), combined with one another or other indicators, and your own systems created. Those systems can then be back-tested in TradeStation to see how they performed. They can also be optimized and otherwise worked with to create systems that work for you.

Ehlers has created a "cookbook" of indicators that use some of the most advanced concepts ever applied to the market.

Ehlers states: "... (the) historical performance of these systems is on a par with or exceeds, the performance of systems that would cost you thousands of dollars to purchase". Analysis with TradeStation confirms this. ... Read more

Book Description

The Reuters Financial Training Series An Introduction to Derivatives A new concept in financial training, An Introduction to Derivatives guides novices through the often complex and challenging world of Derivatives. Full of definitions, concise descriptions, quizzes and examples, the book studies financial instruments — futures, options and swaps — from basic concepts to applications in trading, hedging and arbitrage. Key features include:

• Introductory sections defining terms and giving background to theories
• Examples of transactions and futures contracts
• Summaries and overviews at the end of each chapter recapitulating key points and definitions
• Quick quiz questions and answers to reinforce learning
• Further resources which point to other books, articles and internet tools to widen readers’ comprehension of derivatives and entrench their foundation in the subject.

Reviews (1)

Clear introduction
This guide provides an extremely clear introduction to derivatives, including futures, options and swaps. The book's heavy use of charts and other graphics, and friendly layout, makes it especially easy to follow. Though it provides only basic information about strategy and pricing, it does clearly outline the risk profiles of several common derivatives trades. This book won't help you master the Black-Scholes option pricing formula, but it will give you a solid understanding of how derivatives work. Overall, a very good introduction. ... Read more

Book Description

This book brings together the best minds in trading to produce a wide-ranging and informative volume that will provide lasting value to traders of all kinds. Covering everything from Elliott Wave to seasonals to money management, the book touches on virtually every significant approach to trading. Most important, each chapter is written by an acknowledged expert in that particular field. Highlighted in the new edition: Joe Krutsinger, a leading trading system consultant, explains the key ingredients behind every succesful trading system; David Caplan, a top options educator, discusses the importance of volatility in formulating a trading strategy; Donald Jones, the developer of the patented overlay Demand Curve, provides a rule-based approach to using the Market Profile; Robert Koppel and Howard Abell, the authors of The Innergame of Trading, show how to master the psychological skills that are essential to successful trading. ... Read more

Reviews (1)

Essential Elements of Futures Trading
In Indian capital market, a historic change is going to take place on July 2, 2001. Indian capital market has a system of carrying forward the trades done on the stock market till the party completes the delivery of cash or certificates as the case may be or squares off the transaction with a buy or sell as appropriate. During the carry forward period, the margin may or may not be paid by the investor, but he has to pay carryforward charges from settlemet period to settlement period. This practice is being stopped from July 2, 2001 and India will have a derivative market in financial securities in which only the players can take positions by paying margins.

Hence, there is a lot of interest in the country to read books on futures and options trading. People are moving from library to library to read books on derivatives. It is in this context that I came across this book.

This book is edited one. Right at the beginning of the book, the editor focusses the readers on the three essential elements of future trading: discipline, well designed trading system, and adequate capitalization. A chapter on discipline by Jake Bernstein stresses the importance of continuous effort to track the market data and act upon it.Kenneth Upshaw's chapter on conserving capital is a very useful chapter. In a recent seminar, a number of experienced brokers commented that clients in general do not like stop loss actions. That means many traders in the markets are doing a basic mistake. The call of the editor to traders to review the basics of trading is very appropriate. Eighteen chapters are devoted to discuss various technical approaches that were used by master traders successfully.

The last chapter summarizes all the chapters in the book and provides the common threads of the master strategies.

This book is recommended for study by every aspiring futures trader. Only difficulty could be that you have to find it in a library. ... Read more

Book Description

"Kolb and Overdahl have produced a clear and well-written introduction to derivatives that should serve as a useful foundational text. Their mixture of mechanics, pricing, and risk management is as well-balanced as their blend of theory and practical applications."
–Christopher L. Culp, PhD, Adjunct Associate Professor of Finance at The University of Chicago’s Graduate School of Business and Managing Director at CP Risk Management LLC

"The third edition of Kolb and Overdahl presents a nice blend of theory and application of financial derivatives. The concise anthology introduces institutional background and valuation issues and then shows how each instrument can be used to manage risk. This book is sure to be of interest to risk managers as well as business students about to embark on their finance careers."
–Steve Swidler, J. Stanley Mackin Professor of Finance, Auburn University

"Financial Derivatives is an excellent, accessible introduction to some of the fastest growing markets in modern finance. Kolb and Overdahl clearly explain the uses (as well as the problems underlying several well-publicized abuses) of financial derivatives as risk management tools. Practitioners, regulators, and students of finance will all profit from exercising their option to acquire this book."
–Michael Ferguson, Assistant Professor of Finance, University of Cincinnati ... Read more

Reviews (3)

super book, fun to read
Just entering the business from a EE background so I am reading this book to get down terminology and concepts before reading John C. Hull. At first "selling short" sounded like something shady.

This book is written in a friendly, interesting style.

Requires some math background (high school algebra) and basic knowledge of statistics (Gaussian distribution).
I have been verifying all calculations. For the asking, I have written some programs to automate interest rate calculations and Black-Scholes (...).

Next I'll write a program to do the work of 100000 stockbrokers in finding and executing arbitrage/reverse arbitrage opportunities.

Sound introduction to derivatives
An easy to understand text that establishes the fundamentals of financial derivatives such as futures, options, and swaps with an emphasis on risk management. Great for business students.

Quick and Easy Guide
This is a quick and easy guide to understanding derivatives. Excellent as a brief reference quide. Would recommend to professionals working with these products. ... Read more

Book Description

THE SHORT BOOK ON OPTIONS is just that: a concise easy to understand primer that first teaches the basics of stock options and then offers a hands-on approach to using options in a conservative manner.Beginning with a description of what an option is and how an option works, THE SHORT BOOK ON OPTIONS takes the reader on a journey from learning the language of options to being prepared to trade.The book provides detailed answers to these important questions:What are the steps involved in trading options?Why would you want to sell a stock option?

What do you have to gain?

What do you have to lose?How do you choose which option to sell?THE SHORT BOOK ON OPTIONS is especially useful for long-term buy and hold investors, owners of a self-directed retirement plan, investment club members or anyone who wants to increase the performance and safety of his/her investment portfolio.The author teaches a conservative strategy focusing on profitability and safety.By the time you finish reading this book, you will be eager (and prepared) to make your first options trade. ... Read more

Reviews (6)

Excellent
This book delivers, I did not know about options prior reading, the simple and yet comprehensive presentation allows to develop a good grasp of how to use options on a conservative and solid fashion.
What he advocates (protection and enhancement) of a portfolio is well presented and plan to use his advice.
More likely will now seek more information and knowledge with more elaborated books (not sure is really needed) but the basics are here.
thank you Wolfinger

Clear concise primer for understanding options
I found this book to be just what I was looking for. After a complete introduction to the topic, Mr. Wolfinger helps the novice options investor clearly understand one conservative strategy. The author is very dedicated and thorough in explaining the concepts. He makes no assumptions that the reader has previous knowledge of what he teaches, yet he is never condescending. I also appreciate the easy to read font size. The text is large enough that I can read it without my glasses! Many thanks to the author for having the patience and know-how to start a beginner from "square one". I look forward to other books on the subject by this author.

I am a satisfied options novice
Enjoyed this book! It delivers as promised. I picked it up hoping to get a clear understanding of options and how they work. I was more than pleased, as this book provided all I was looking for, and more. The author presents material in pleasant, easy to grasp language. I now have a very clear understanding of options. The covered call writing strategy sounds good to me. I never knew it was so easy to obtain some safety for my stocks. I have already opened my options account and my broker is offering encouragement.

I'm no longer "clueless"!!
Since reading this book, I have learned how to use options, opened an options account, and made several successful transactions. The author's style is easy to understand and the recommended strategy has been working for me. PS...I have set aside a small amount of my own money to work with...I haven't told my husband about my newly acquired skills. Hopefully one day in the future I will be able to give him a $$ surprise!
GIRLFRIENDS...GET THIS BOOK!

Great options strategy
This book not only explained the concept of options in a simple to learn manner, but it also demonstrated how to use one simple options strategy. I am much more comfortable with my investments now that I have added safety to my holdings. I recommend this book to anyone who is worried about the safety of his current investments. ... Read more

Book Description

Largely exempt from regulation and shrouded in secrecy, "hedge funds" are one of the most controversial institutions in modern finance. Presenting a balanced view of the subject. De Brouwer explains their workings using case study material from Hong Kong, Indonesia, Malaysia, Singapore, Australia and New Zealand, from 1997 to 1998. He also considers the future of hedge funds, their role for institutional investors, as well as policy proposals to limit their destabilizing effects. ... Read more

Book Description

How to profit from put options, the straightforward, versatile tool that any investor can use

Put Options provides complete information for understanding and using puts, the easy to-use investment designed to help investors lower risk and increase overall returns. Misunderstood by most investors as being far too complex, aggressive, and risky to bother with, puts are actually one of the safest end most versatile risk-hedging instruments available, and suitable for virtually any investor.

Put Options explains why and how.

Author Jeffrey Cohen outlines a foolproof, back-tested strategy for incorporating put options into any investment portfolio--or even creating a stock-free portfolio.

Put Options features:

• 9 put rules for saving both money and frustration
• Put strategies for profiting in up, down, or sideways markets
• Tips for using puts to increase trading leverage and success

Reviews (3)

Put Options
You should know I'm biased. Mr. Cohen is my personal financial consultant. Over the past three years while many of my friends were losing a fortune in the market, my portfolio grew substantially thanks to the principles discussed in this book. If you can't have Jeff as your personal advisor, the next best thing to do is read his book and see how he does it. - Wm.G.Hayden,M.D.

Opportunity to earn consistent double-digit stock market ret
If you were like most investors, you would leap at the opportunity to earn consistent double-digit stock market returns with greatly reduced risk. This excellent book on Put Options introduces you to an innovative, proven program designed to do just that--produce consistent and regular stock market returns while minimizing the risk of losing those returns during a down market.
The secret, as described in detail in the book, is in implementing a low-maintenance, easy-to-follow program of selling put options on quality stocks while hedging those investments by buying puts on the overall market. Far easier to implement and track than it sounds, this strategy is frequently used by institutional investors, whose reputations and careers depend on garnering decent returns without assuming unnecessary risk.
Put Options explains this proven technique in terms that virtually any investor can understand and implement. The rare investment book that supports its claims by providing the actual results of actual trades using actual household-name stocks, Put Options provides a step-by-step template on how you can use author Jeffrey Cohen's SafetyNet program.
This book is for the individual small investor that makes his own investment decisions. The existing base of such investors is huge, and growing rapidly, as evident by the subscriber growth rates of the online brokers. The reasons for these investors making their own decisions and thus controlling the performance of their portfolios is quite clear when you consider the following scenario:
The savvy investor is no longer content making a 2% annual return in a passbook savings account or 4% on a Bank Certificate of Deposit. Some mutual funds may do a little better than this but their performance is not always consistent.

Today, everyone wants his or her money put to hard work, aggressively generating more money. Since the stock market outperforms all other investments over time, people are increasing turning to the stock market and the options market, where much higher rates of return can be made with relative small increase in risk to capital.

Before the later part of 1997, it was difficult for the small investor to become actively involved in the stock market. The commission fees charged by the full service brokers were high. Research into companies and analysis of stocks were difficult, obtaining timely information was nearly impossible for the average person. It used to be that stock and option investing was considered the domain of professional money managers and the wealthy elite. The Internet has changed all that by providing a wealth of financial information and online brokerage firms. There are hundreds of Internet sites that provide free instant access to stock quotes, stock charts, company profiles, late breaking company news, detailed technical analysis, and even specific stock and options recommendations.

With computers and Internet connection available to everyone inexpensively, the small investor has opportunity like never before! These days, virtually everyone knows about the stock market. The number of mutual funds has grown 50 folds since the 1970's... 401(K) plans have flourished ... kids these days get stocks as birthday and graduation presents... there is 24 hour stock coverage on TV... online trading accounts are everywhere...

My point is this: we have become a generation of stock investors. We are raising our children to be stock investors. And with savings interest rates hovering around 1%¾there are trillions of dollars in cash still waiting on the sidelines¾with no place to go except right back into the stock market. All it will take is more good news from sectors recovering from over growth and the recent pullbacks.

The most important of all is the fact that investor expectation of reasonable return on investment has been moderated after the recent stock market bubble burst... and a 20% to 30% per year return on a sustainable basis is very attractive and acceptable. In my opinion, anyone who has a portfolio or manages investor or corporate funds is a potential reader [of the Put Options book] and user [of the SafetyNet program] by Jeffery Cohn.

Put Options will change the way you invest by literally changing the way you view investment. It shows you how to invest in today's best blue chip and technology stocks in such a way as to profit when they do well while protecting yourself when they do poorly. Packed with facts, figures, and actual examples of SafetyNet program in action, it unquestionably supports the bottom-line premise that writing options can, if done correctly, be far safer than owning shares of stock--and then shows you exactly how to do it.

Super strategy
Cohen's book is a compelling analysis of selling put options and covering the risk with the purchase of index puts. He compares this strategy with the purchase of long stocks and describes how the strategy reduces risk. Overall a solid description of a well developed strategy. Not some get-rich-quick scheme! ... Read more

Book Description

On his hugely popular Web site Undergroundtrader.com, Jea Yu tells traders how to stand firm, trust their instincts and knowledge, and grab the day trading profits they deserve. Traders trust Yu's hard core, just-the-facts perspective to cut through the fluff, hype, and misinformation, and deliver effective trading tips and strategies on techniques, order routing, technical analysis, market maker activity, and more.

Here, Yu dynamically transfers his methods for making daily, real-time recommendations to the printed page. Traders will derive instant benefit from Yu's straightforward, Web site-driven analyses including:*
Vital and detailed information on the different stock markets*
Techniques to profit from IPOs and Internet stocks*
A day in the life of a successful electronic trader ... Read more

Reviews (36)

Not too good: but appendix A is worth the money
This is not a very good book on daytrading.

Best book I read regarding this subject is "Fiancial freedom trough electronic daytrading" by Van K Tharp and Brian June. They give you a step by step way to build your plan, including the three main elements of any trading plan: Psicology, risk control and posotion sizing.

Second best is Tony Oz's "Stock trading wizard".

Anyway, Appendix A of "The Undergroundtrader.com Guide to Electronic Trading" ,written by Russell Arthur Lockhart, Ph.D. and titled "A different style of trading", is excellent and gives you, as the title says, a different way to daytrade, without the stressing pressure of level 2 surveillance and the subjectiveness inherent of the decission making using this tool.

Lockhart method (3PB)is purely mechanical and focussed only in price action. No indicators such as stochactics or MACD are needed. It tells you, also, how to improve this method using fibonanci price targets and pivot points.

Based solely on this appendix ( 35 pages) i'm glad I bought this book.

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Book+Video+Chat+Practice=$
Read the book twice. Jay says in 200 pages what it takes others 500 pages to say. Its cut to the chase baby. If you want straight talk, thats that fact jack, then this is the book. Add the video and join the chat service (Jay is a coach, like Bobby Knight, if your screwing up he lets you know about it!!) and you might have a chance to succeed. Face it, no matter what system you choose, most daytraders fail, Jay provides simple yet effective methods for scalping or swinging intra-day but you must follow them, get greedy or loose focus and your toast.

I have only been a chat subscriber a short while, but he has honed my skills, helped me to stay focused and learn the techniques. As far as the daily calls on the website, I've seen them all called live and they are real. However,I dont take those trades unless I know the stock. Thats one of his techniques. Your basket stock, pick one stock and learn that sucker forwards and backwards and quess what, it becomes your personal ATM machine, yea baby$ Stray from your basket and quess what, ya go home red.

totally worthless
It always amazes me how some people have the ability to write a whole book with nothing to say. If you can make money using the techniques in this book please email me, as far as I'm concerned this book is only meant to promote their services. The second half of the book is surely meant to impress, not to teach. I hate these selling techniques: they even make us pay for their promotional material.

Pragmatic advise to those who can listen.
If one were to follow the advise in this book, they would be successful. The author leaves nothing to chance and is trying to teach the reader that he too must leave nothing to the whim of the market. The premise on which this excellent book is founded is to react to the market and not forecast it. As Jea Yu points out, it is harder to do than you might expect. The battleground is really the "baggage" that we all bring to the table - our ego's, our budget and most of all our bad judgment. This is a great book and teaches a winning style, if the trader has the discipline to follow it.

Outstanding. Read it again and again.
A novice should probably read that fluffy Toni Turner book to get an idea of the lingo, but no one should contemplate day trading without reading Lu. This book is a detailed description of the intricacies of no-nonsense, hardcore daytrading, written by a consistently successful practitioner.

I have read dozens of books on trading and this is the only one that I read again within one week of finishing it for the first time. It's simply too good to store on a shelf. Read it, learn from it, read it again, profit from it.

To use an old cliche, the small amount of money spent on this book will be the best investment you'll ever make. I'm not kidding. Read Toni Turner's sappy book if you must, if you're new to the game, but don't open an account until you read Jea Lu. His explanation of Level II screens, the use of stochastics and moving averages, and his advocacy of zero-emotion trading are all gems, which alone would be worth the price of the book.

I'm currently re-reading it, cover to cover, for the third time. ... Read more

Book Description

The very rare trendline methods of Alan Andrews have been research by the author for over ten years and finally brought together in this single volume. The trendline methods are used for short to intermediate term financial trading and have never all been published in one place before. Also included are the latest trendline advancements built on Alan Andrews methods. The new material is exclusive to this book. ... Read more

Book Description

The key concepts and essential strategies behind the successful use of options
Written by Simon Vine, a seasoned trader who has over ten years of experience on Wall Street under his belt, Options is the definitive book on options for traders, investors, and risk professionals. Options provides a step-by-step approach to trading, hedging, and investing using options, and shares the key concepts essential to successful options use. Options also explores how to use a wide variety of options strategies and shows readers how to select the strategy that best fits their own psychological risk profile. Filled with real-world examples and proven strategies, this invaluable resource will be of interest to all professionals-and newcomers-who'd like to exploit options for strategic advantage, risk management, or profit.
Simon Vine (Moscow, Russia) is deputy head of the investment banking division at Alfa Bank, the largest private financial institution in Russia. He holds an MBA from Columbia Business School and a BA from the Institute for Finance and Economics in Moscow. ... Read more