any good reads on options?

S

Softgiant

I am wanting to learn more about options for protection against a stock purchase...can anyone recommend a good educational read for me on this so I can learn more about the options market? Thanks for your help, sg
 
Quote from stoic:

I think the best book on options is:

"Options as a Strategic Investment"

by Laweence G. McMillan
More...
This is the Bible. Buy it. Keep it. Read it over and over. I do and I have been trading options professionally for six years.
 
Quote from stoic:


"Options as a Strategic Investment"
More...
Utterly and completely worthless.

Natenberg.

Baird.

This exact same question has been asked time and time again. Try the search function.
 
I think being a rookie still myself, I can say that McMillan and Natenbergs books serve two completely different purposes.

I read Natenberg first, and in hindsight should have read McMillan before that.

Personally, I think that McMillan provides a solid foundation for each strategy, whereas IMO Natenberg dives deeper into the practical side of the BS model and managing risk.

I think there's some helpful stuff at the end of McMillans book... and I think his book is sort of a pre-requisite for Natenberg's material.

If one is well acquainted with option strategies and the basics, then McMillan's book isn't necessary IMO. But it's a great reference tool so far.
 
Not a book, but here's how I would do it.

Depending my time-frame (the time I'm planning to hold the stock), I would choose the expiration month or year, and depending on the price I want to hedge my loss in, I would choose the strike, accordingly.

For instance, I'm long C at $3, I'm planning to hold it for a year, but afraid it's going to drop, I would buy 2.50 put options expiring on Jan '11.
 
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