Top 5 Books to Become an Option Trader

Finding the consistent loser or novice trader is how the option pro generates the bulk of his or her gains. Thus it avoids the typical pitfalls of other books in this space. Sponsored Products are advertisements for products sold by merchants on Amazon. What about if a decline occurs? The authors offer especially helpful advice on the key options trading elements of risk management and volatility. May 18, Sold by: Presents some great philosophy regarding how to

The Option Trader's Hedge Fund: A Business Framework for Trading Equity and Index Options (paperback) [Dennis A. Chen, Mark Sebastian] on *FREE* shipping on qualifying offers. In this book, a hedge fund manager and an option trading coach show you how to earn steady, reliable income selling options by managing your option trades and running your option portfolio as a real /5(50).

"Option as a Strategic Investment," by Lawrence McMillan

Covered Calls Made Easy: Learn a simple income-boosting strategy for growing your nest egg. The Book on Making Money. Try the Kindle edition and experience these great reading features: Share your thoughts with other customers. Write a customer review.

Read reviews that mention hedge fund insurance company options trading option trader traders hedge risk management trading plan equity and index iron condors option strategies mark and dennis trading as a business options trading position sizing worth the price trading options must read intermediate level vertical spreads many other books. There was a problem filtering reviews right now. Please try again later.

Kindle Edition Verified Purchase. The book is about describing trading in general as a business - but this is assumed for everyone, who is not in trading for fun. There is no any specific framework and the knowledge given about options is very limited.

All ideas in the book are described already in Alex Elder books. Looks like the book is written to advertise the hedge fund the author runs. Do not waste your time and money on this book. If you could find a book written by Dennis Chen alone you would be ahead of the game.

There is definitely different writing styles between Chen and Sebastian. Chen provides information you can use right away. Sebastian's clear purpose is to give you just enough information to leave you hanging so you go to his website to pay for poorly done online courses.

After reading the book I was surprised it was endorsed by Tony Battista whom I have great respect. I blame myself for buying this book because I wanted a quick answer to certain technical aspects of option trading instead of putting in the hard work and research. It's a challenging read but I have actually learned more in the first 50 pages than than in the entire "The Option Trader's Hedge Fund".

This is a book that every options trader should read. I have read it twice and use it regularly as a reference - it is that valuable to me. I have read most of the top books on options that are available, but this one stands out in it's practicality and it's ability to lay out a solid framework for options trading as a business. Where most books either stay too theoretical, rely too much on analogies, make unrealistic promises, or focus too much on a single strategy I find The Option Trader's Hedge Fund gave me not only the theory but also practical information that has improved my trading.

Of particular value is the explanation of the various positions that may be traded along with under what conditions it each position will perform best. Beyond that there is a discusion on managing each type of position, such that a clear plan is laid out for most situations you might encounter.

What I find particularly unique and valuable are the details on how to adjust each position for various circumstances along with the setup of what volatility environment and skew curves work best for each position. This level of detail is not something I have found in any other books on the subject - at least not presented in such a practical way. This book has improved my trading and saved me many times the price just in helping me learn how to better manage positions I was already trading.

It's been even more valuable by helping me identify under what conditions I should be trading various positions. I view it as essential reading for anyone trading options. Of all the options books I have read, this one is the most useful and valuable to me. This is the one I pull out when planning trades.

This is the one I pull out when I need to manage or adjust a position. I'm just a regular guy with a famly and a job who's doing his best - maybe if you are a pro it's not as valuable to you, but for me it's the most valuable options book I have. That's how I found out about this gem! Just for the purpose of context, I am not a novice option trader nor an expert but I read this book thoroughly from beginning to end.

Over all the content did repeat from other options books I have read but included a lot of good facts about the markets that I did not understand before. Skew detail was vague and almost two chapters of blog entries otherwise I would have given it five stars.

Good book and has some interesting "rule of thumb" type information for specific Option Strategies, but falls a bit show in showing more details. The author talks of identifying a "Steep Skew" and offers some basic concepts at a macro level on how to "tell at a glance" the degree of steepness, but he stops short in offering more details One person found this helpful. I am not a professional options trader but learning.

The concept of comparing options trading to an insurance company makes a lot of sense when you think about it. My main complaint is that the book often rushes through a topic without adequately explaining it. I kept getting the feeling that this book was just thrown together. The book covers some topics such as unit options that are new and potentially very useful to me.

Aso some of the blog postings are very useful. However, the book was originally listed as being over pages long; it would have been better to me if the authors had kept writing with more examples. Presents some great philosophy regarding how to Presents some great philosophy regarding how to run a personal options trading business.

Fine illustrative examples of how to use the authors' preferred strategies, and an illuminating section on educational resources -- what to read next. See all 50 reviews. Most recent customer reviews. Published 1 year ago. Published on August 6, Published on October 28, Published on April 10, Published on February 11, Published on December 18, Published on October 2, Published on August 10, Published on May 6, Amazon Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers.

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Adjustments to a trade are shown to be necessary to protect capital and minimize losses. A unit may have delta lower than 5, while protection occurs when the market makes a large downward move. Because of market action by traders rushing to buy puts, the unit usually in the front month for a larger response increases in value to fulfill its protective role.

Paul Cretien is an investment analyst and financial case writer. His e-mail is PaulDCretien aol. Page 1 of 2. About the Author Paul Cretien is an investment analyst and financial case writer.

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Product details

The Option Trader’s Hedge Fund A Business Framework for Trading Equity and Index Options Dennis A. Chen. One of the best option-trading hedge funds in the business, Cornwall Capital, has averaged 51% annualized over the past 10 years. That turns a mere $20, investment into . The hedge fund approach is about diversification and consistent mechanical management. “The hedge fund approach to trading looks at an entire portfolio of positions” The early pages of the Option Trader’s Hedge Fund detail similarities of the insurance industry to the successful operation of a hedge fund.