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Friday, February 02, 2007

Options Made Easy


As the title of the book goes, author Guy Cohen really makes this book an easy read for traders of all levels. Easy read here doesn't mean no content, what I mean is that it is well-written, clean-cut and very organized.

Options Made Easy has 12 chapters in all. First two chapters are on options basic and options marketplace e.g how to read option chain, order types, margin etc.

New to fundamental analysis and don't know what financial terms such as PEG ratio, interest cover means? Chap 3 covers this neatly, in tabulated form displaying the calculation and the significance of these terms. For newbies who have no clues on head and shoulders, pennants, flags etc, check out Chap 4 on technical analysis.

The next few chapters cover Greeks, Bull Call and Bull Put spreads, Volatility strategies (Straddle and Strangle), Sideways Strategies (Butterfly and Condor). His criteria for these strategies are shared, together with risk profiles and the Greeks for each scenario. And he ends off with a "bonus" chapter combining stock futures with options strategies.

Although Guy Cohen is not in the league of big names like Lawrence McMillan or Bernie Schaeffer, I'm impressed by the clarity of the content. I also like the recap of major learning points at the end of each chapter. My hubby and myself both agreed that this is the most organized and easy to understand book on options we have come across so far. Highly recommended for starters.

Grade: A


4 Comments:

Blogger ODA125 said...

S.O.T.,

Great plug for Options Made Easy! A MUST read for all levels of Options Traders.

Happy Friday Trading!

ODA 125

8:44 PM  
Blogger Simply Options Trader said...

Yeah, and I see from your blog that you had a good trading week :) Good work! And is this the result of you trading full-time?

Have a great weekend!

10:37 PM  
Blogger ODA125 said...

S.O.T.,
Actually I do not trade fulltime as the world ses it anyway. I trade everyday bt I do not sit and watch the screns. My process allows me the time to set everything up the night before and leave it alone. It will be what it will be and I can not control it. The charts tellme all that I need to know and that is all I worry over (if you call it worry). I do trade very actively several different portfolios using my process. My day job is having fun and doing some private consulting work for select individuals or entities as well as managing several companies I own. I believe that trading should be fun and as in any thing one does as well as run like a business. I know I rambled on a it -I guess I am in a rambling mood this weekend? Thanks for having a great blog with a myriad of information sources for those that seek it.

5:58 AM  
Blogger Simply Options Trader said...

I like the "rambling" :)

Thanks for sharing this bit about you.

8:59 AM  

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