Options as a Strategic Investment

Options as a Strategic Investment
by Lawrence G. McMillan

If you decide to try out options trading, this is a good book with most of the basics you’ll want to know. It starts out with all of the elementary concepts related to options, like puts and calls, then goes on to explain the options market and its procedures. After you learn some of the terminology, it lays out all of the different strategies, like spreads, straddles, etc. While lots of books just go over the mechanics of opening the different positions, this one neatly presents all of the follow up actions along with their pros and cons too. I really like how there are lots of tables showing you exact numbers for how things would work out in sample trades given the different actions.

Options seemed exotic and mysterious when I first started looking into them, but after I read this book things got so much clearer. I definitely would not recommend options trading for everyone, but they’re something you should at least know about if you trade stocks. This is not an inspirational book and it’s not trying to convince you to play the options market, but if you decide for yourself look to into them, this is definitely a reference book you’ll want to have.