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.
I usually stay away from books that start with "How to get rich in..." But I decided to give this book a shot after reading some of the reviews.
I've been doing cover calls (one of the strategy taught in this book) for some times prior to listening to this audiobook. But the other three strategies gave me a whole new perspective in trading. I will never trade stocks the same way again.
If you're not familiar with options or new to trading I suggest buying the book instead. The author uses a lot of examples that requires charts and visualization from the book. Anyone who are not familiar with options can easily get confuse, bored, and lost.
I planned to buy the actual book and read it again for a better understanding of some of the strategies. Great book, if you're looking to make money in the stock market this is a must read.
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.
It provides a pretty straight forward explanation on how each strategy works and lots of examples. good stuff
This is a good book for a beginner to intermediate options trader with a retail account. The first part of the book gives a good introduction to options. An intermediate trader may want to skip straight to chapter 6ish where he goes into his trading strategies. I was particularly fond of his chapter on credit spreads. My only critique is that I would have preferred a larger section on managing losses for those trades, although he does touch on it. Chapter 9 is nice break in the lessons as he gives you a feeling for life in the trading pits. Although this may not make you money, it gives you an appreciation for life before electronic trading which will make you a well rounded trader. His chapter on broker selection is pretty good as well, given the date of the book.
In summary, I think it was a good read that I will be referencing in the future. I believe any naysayers out there are just suffering from wanting a silver bullet. Options trading, like anything else in life worth doing, takes a lot of time and commitment to deliver success. The book demonstrates this and does not promise any great rich quick scheme. I admire Lowell for specifically stating in the conclusion to read all the free material you can prior to signing up for a "$2000 course". Thanks for sharing your experiences Lee!
Very beneficial to read something like this before you start trading options. Only downside is that the unwise title makes it sound like a get rich quick scheme.
The author has plenty of experience in the options market and is willing to share it step by step in a friendly and easy to understand way. A must read for those who want to start trading options and have little or no experience in this market.
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