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.