A detailed guide to successfully trading stock and commodity options.
After numerous years as an options market-maker in the trenches of the New York Mercantile Exchange, few analysts know how to make money trading options like author Lee Lowell. Now, in the Second Edition of Get Rich with Options, Lowell returns to show you exactly what works and what doesn't.
Filled with in-depth insight and expert advice, this reliable resource provides you with the knowledge and strategies needed to achieve optimal results within the options market. It quickly covers the basics before moving on to the four options-trading strategies that have helped Lowell profit in this arena time and again: buying deep-in-the-money call options, selling naked put options, selling option credit spreads, and selling covered calls. This book:
With this book as your guide, you'll quickly see options in a whole new light and learn how to become part of a small group of investors who consistently win.
©2009 Lee Lowell (P)2012 Audible, Inc.
Buy this book if you already have decent options knowledge. If you don't speak the "options language", you might have a hard time understanding the strategies.
Not that this book isn't for a beginner, it's that the audio version isn't for a beginner. A beginner will need to see all the charts he is describing in the book to really understand how to place these trades.
Now, if you're already familiar with calls, puts, OTM, ATM, ITM, strike price, and all the other vocab you have to know to trade options, then you can probably handle the audio version.
He outlines 4 main strategies in the book:
DITM calls with a delta of .9 or higher. (The "D" in DITM stands for deep)
Option credit spreads. i.e. bull put spreads/bear call spreads
Selling naked puts.
Writing covered calls.
If you have already done all these things, the book is still worth checking out. He really explains Delta well and also gives some really good clues and insight on using volatility to your advantage.
There is also a great chapter on what life is like being a market maker. Great stuff in that chapter.
So, can you get rich doing this? Of course! Can you go to the poor house in a hurry doing this? Of course! If you're a person who is writing covered calls in order to collect high premiums without really wanting the underlying stock, you need this book. You will learn how to better hedge that strategy so you don't get hammered. Trust me, I've done that.....and I got HAMMERED! Do your homework on the underlying, hedge your position, and you won't get creamed. Honestly, if your goal is to beat the market average every year, you could easily do it with the strategies outlined in this book. I've done it for years and I'm getting better returns now that I am using the advice in this book.
He doesn't candy coat anything. He makes it very clear what the worst case scenario of each trade is. Don't selectively listen, do your homework and don't lose your retirement trading options.
One final note, he does plug a few websites that are pay sites. Reviewers on other websites nailed him for this in their reviews of this book. You do not have to have his pay site to implement his strategies. He also spends a good amount of time telling you where you can get option advice for FREE on the web so I don't know why those reviewers beat up on him so much for plugging his site. He points you to more than enough free resources to be fully informed on his strategies.
This is a good book that is fairly easy to follow. I do not recommend listening to it if you are not familiar with how options work. He does explain all the different parts that determine value of an option, but it's easy to get lost if you are not familiar with terms like Call, Put, Strike, In-the-money, Out-of-the-money, Beta, Volatility, etc. It can be difficult when he is referencing charts, but if you will get the idea of what the trade is trying to accomplish if you listen closely.
Overall, I think it is a worthwhile book. I hope I will be implementing some of these concepts in my future trading.
Yes, I could recommend this audiobook a friend
option market, I have been studying about that!
I don't know. I don't have any idea about that
Excellent, opportunity to know about stock market.
Good book to learn about stock market - option.
I liked this book. Very practical guide to options. Does a decent job of explaining the risks.
Don't jump into options if you are a gambler. I think options can be a good addition to your portfolio.
I would not buy another book from Lee Lowell because I would not trust the information to be accurate.
The four winning strategies the author outlines are much riskier than he suggests they are. It seems the author, despite his years of experience in the options world, has a fundamental misunderstanding of "risk" in investing. Risk has nothing to do with percentage of winning trades. For example if you are successful in 9 out of 10 trades and make an average of $100 per trade, but lose $1000 on the 1 trade you are not successful at, you will still lose money with these strategies. Selling options increases your risk because you have limited gains and the potential for severe losses. If you are not a serious and experienced investor avoid this book. If you are, then you will probably already take it with a grain of salt.
Not all books should be made in audio. This is one of them. I trade stocks, and am trying to learn options, you need the actual book see the examples to more fully understand the content. Books need to be reviewed by someone that has some understanding of the content to know if they should be sold in an audio only form.
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