To get the best possible experience using our website, we recommend that you upgrade to a newer browser version. With more than , copies sold, this blockbuster best-seller is considered to be the bible of options trading. The new 5th edition is completely revised and updated to encompass all the latest options trading vehicles, supplying traders and serious investors with an abundance of new, strategic opportunities for managing their investments. The market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments.
This updated and revised fifth edition of the bestselling Options as a Strategic Investment gives you the latest market-tested tools for improving the earnings potential of your portfolio while reducing downside risk—no matter how the market is performing. Inside this revised edition are scores of proven techniques and business-tested tactics for investing in many of the innovative new options products available.
Detailed examples, exhibits, and checklists show you the power of each strategy under carefully described market conditions. Click Here for a detailed explanation of the differences between the 4th and 5th editions. Also available is the Options As A Strategic Investment Study Guide. With reading assignments and quizzes, this study guide will help ensure that you've grasped the key concepts of each chapter.
Options as a Strategic Investment by Lawrence G. McMillan — Reviews, Discussion, Bookclubs, Lists
Since its original publication, Options as a Strategic Investment has answered many a question; and each succeeding edition has answered many more. It is the options reference in our office. This latest version of his original classic presents his latest thinking on options.
McMillan is truly the master of his field. It has established the benchmark by which all other option books are compared - and none measure up. His insights into trading concepts will always stand the test of time. Keeping up with the latest information on options is mandatory and no one does it more masterfully than Larry.
Cook - Professional Options Trader, Mark D. Cook Trading Instruction, East Sparta, Ohio. McMillan not only makes this risk management tool easy to understand, but fun to learn. Did you realize that if you own a car you own a put?
Read the book and find out how you are already using options as a risk management tool without realizing it. This book should be read by everyone - professionals and individual investors alike. Every serious investor should read this book. McMillan is well established as the leading authority on options trading and information. His contributions to this body of information are well documented and acknowledged by professionals thought the securities industry.
This book is an important part of any serious trader's library. I highly recommend it to both inexperienced and experienced option traders alike.
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It has been invaluable, you write very clearly and to the point. As a neophyte who had just passed the series 7 and working on the series 4, most books on options would have been absolutely overwhelming. Your book presents a clear progressive education on the topic and it is a constant resource.
Does not apply to the Study Guide or package. Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts.
Past performance is not necessarily indicative of future results. Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given.
You should not necessarily expect the same or similar results. Past performance results for advisory services and educational products are shown for illustration and example only, and are hypothetical. Did you know that your Internet Explorer is out of date? About Us Products Advisories Analysis Tools Educational Materials Money Management Mentoring Blog Contact Us.Business Book Review: Options as a Strategic Investment by Lawrence G. McMillan
McMillan With more than , copies sold, this blockbuster best-seller is considered to be the bible of options trading. Don't Trade Options Without It The market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments.
Part I - Basic Properties of Stock Options.
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Chapter 1 - Definitions Elementary Definitions Factors Influencing the Price of an Option Exercise and Assignment: The Mechanics The Options Markets Option Symbology Details of Option Trading Order Entry Profits and Profit Graphs. Chapter 2 - Covered Call Writing The Importance of Covered Call Writing Covered Writing Philosophy The Total Return Concept of Covered Writing Computing Return on Investment Execution of the Covered Write Order Selecting a Covered Writing Position Writing Against Stock Already Owned Diversifying Return and Protection in a Covered Write Follow-Up Action Special Writing Situations Covered Call Writing Summary Chapter 3 - Call Buying Why Buy?
Risk and Reward for the Call Buyer Which Option to Buy? Advanced Selection Criteria Follow Up Action A Further Comment on Spreads Chapter 4 - Other Call Buying Strategies The Protected Short Sale or Synthetic Put Follow Up Actions The Reverse Hedge Simulated Straddle Follow-Up Action Altering the Ratio of Long Calls to Short Stock Summary Chapter 5 - Naked Call Writing The Uncovered Naked Call Option Investment Required The Philosophy of Selling Naked Options Risk and Reward Summary Chapter 6 - Ratio Call Writing The Ratio Write Investment Required Selection Criteria The Variable Ratio Write Follow-Up Action An Introduction to Call Spread Strategies Chapter 7 - Bull Spreads Degrees of Aggressiveness Ranking Bull Spreads Follow-Up Action Other Uses of Bull Spreads Summary Chapter 8 - Bear Spreads Using Call Options The Bear Spread Selecting a Bear Spread Follow-Up Action Summary Chapter 9 - Calendar Spreads The Neutral Calendar Spread Follow-Up Action The Bullish Calendar Spread Follow-Up Action Using All Three Expiration Series Summary Chapter 10 - The Butterfly Spread Selecting the Spread Follow-Up Action Summary Chapter 11 - Ratio Call Spreads Differing Philosophies Follow-Up Action Summary Chapter 12 - Combining Calendar and Ratio Spreads Ratio Calendar Spread Choosing the Spread Follow-Up Action Delta-Neutral Calendar Spreads Follow-Up Action Chapter 13 - Reverse Spreads Reverse Calendar Spreads Reverse Ratio Spread Backspread Chapter 14 - Diagonalizing a Spread The Diagonal Bull Spread Owning a Call for "Free" Diagonal Backspreads Call Option Summary.
Chapter 29 - Introduction to Index Option Products and Futures Indices Cash-Based Options Futures Options on Index Futures Standard Options Strategies Using Index Options Put-Call Ratio Summary Chapter 30 - Stock Index Hedging Strategies Market Baskets Program Trading Index Arbitrage Follow-Up Strategies Market Basket Risk Impact on the Stock Market Simulating an Index Trading the Tracking Error Summary Chapter 31 - Index Spreading Inter-Index Spreading Summary Chapter 32 - Structured Products Part I: Pructs Designed to Provide "Income" PERCS Call Feature A PERCS Is a Covered Call Write Price Behavior PERCS Strategies PERCS Summary Other Structured Products Structure Product Summary Chapter 33 - Mathematical Considerations for Index Products Arbitrage Mathematical Applications Chapter 34 - Futures and Futures Options Futures Contracts Options on Futures Futures Option Trading Strategies Commonplace Mispricing Strategies Summary Chapter 35 - Futures Option Strategies for Futures Spreads Futures Spreads Using Futures Options in Futures Spreads Summary.
Chapter 36 - The Basics of Volatility Trading Definitions of Volatility Another Approach: GARCH Moving Averages Implied Volatility The Volatility of Volatility Volatility Trading Why Does Volatility Reach Extremes? Summary Chapter 37 - How Volatility Affect Popular Strategies Vega Implied Volatility and Delta Effects on Neutrality Position Vega Outright Option Purchases and Sales Time Value Premium is a Misnomer Volatility and the Put Option Straddle or Strangle Buying and Selling Call Bull Spreads Vertical Put Spreads Put Bear Spreads Calendar Spreads Ratio Spreads and Backspreads Summary Chapter 38 - Distribution of Stock Prices Misconceptions about Volatility Volatility Buyer's Rule!
The Distribution of Stock Prices What This Means for Option Traders Stock Price Distribution Summary The Pricing of Options The Probability of Stock Price Movement Expected Return Summary Chapter 39 - Volatility Trading Techniques Two Ways Volatility Predictions Can Be Wrong Trading the Volatility Prediction Trading the Volatility Skew Volatility Trading Summary Chapter 40 - Advanced Concepts Historical and Implied Volatility The "Greeks" Strategy Considerations: Using the "Greeks" Advanced Mathematical Concepts Summary Chapter 41 - Volatility Derivatives Neutrality Calculation of VIX Listed Volatility Futures Other Listed Volatility Products Listed VIX Options Trading Strategies: Directional Signals Using VIX Futures Information Using and Trading the Term Structure Protecting a Stock Portfolio With Volatility Derivatives Other Macro Strategies Hedged Strategies Using Volatility Derivatives Ratio Spreads With VIX Options Volatility Derivatives Summary Chapter 42 - Taxes History Basic Tax Treatment Exercise and Assignment Special Tax Problems Summary Tax Planning Strategies for Equity Options Summary Chapter 43 - The Best Strategy?
Market Attitude and Equivalent Positions What Is Best for Me Might Not Be Best For you Mathematical Ranking Summary Postcript. Appendix A - Strategy Summary Appendix B - Equivalent Positions Appendix C - Formulae Appendix D - Graphs Appendix E - Qualified Covered Calls Appendix F- Portfolio Margin Glossary Index.