Book Description
Legendary trader Larry McMillan does it-again-offering his personal options strategies for consistently enhancing trading profits
Larry McMillan's name is virtually synonymous with options. This "Trader's Hall of Fame" recipient first shared his personal options strategies and techniques in the original McMillan on Options. Now, in a revised and Second Edition, this indispensable guide to the world of options addresses a myriad of new techniques and methods needed for profiting consistently in today's fast-paced investment arena. This thoroughly new Second Edition features updates in almost every chapter as well as enhanced coverage of many new and increasingly popular products. It also offers McMillan's personal philosophy on options, and reveals many of his previously unpublished personal insights. Readers will soon discover why Yale Hirsch of the Stock Trader's Almanac says, "McMillan is an options guru par excellence."
Lawrence G. McMillan (Morristown, NJ) is President of McMillan Analysis Corporation. As the foremost authority on options, Mr. McMillan is publisher of the Option Strategist, a leading advisory newsletter for the options community, and creator of the innovative fax service "Daily Volume Alerts." He is also the author of the bestselling books Profit with Options (0-471-22531-2) and McMillan on Options (0-471-11960-1). A recipient of the Trader's Hall of Fame Award, Mr. McMillan is also a sought-after speaker and options educator, and conducts options training workshops around the country.
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Praise for McMillan On Options Second Edition "When it comes to options trading education, no one is more respected than Larry McMillan. With all the new innovations in the options arena over the past decade, this revised edition of his classic work is a must-have for ardent options traders and novices alike." ¿Price Headley President and Founder, BigTrends.com "Larry McMillan has proved once again that he is an option strategist and educator without peer. In this book, he provides an intimate look at his own personal trading philosophies. He has truly raised the bar in his update to McMillan on Options."James Bittman OIC Instructor and Author "Amazingly, Larry McMillan has outdone himself. His update of McMillan on Options not only expands the original research to include single-stock futures, LEAPS, ETFs, and volatility futures but goes beyond theory and reveals his personal strategies and new methods. McMillan¿s put-call ratio work is bar none. An absolute must-read for trader
Customer Reviews:
Interesting reading on options.......2007-06-27
This is not a textbook of option strategies and option trading. However, it makes for interesting and educative reading. If you want to learn the trade strategies in depth, I recommend the companion book by Lawrence McMillan "Options as a Strategic Investment".
A ponderous, insightful guide to options strategy, but not for everybody.......2007-06-12
I loved this book, written in a language that is easy to understand for non native speaking, like me.
A few points:
- this book is not for absolute beginners. Mr. McMillan indeed provides the basis for understanding options and the most known strategies, like spreads, strangle or similar. I would however direct the reader who is unaware of the basis to the other ponderous work of Mr. McMillan, Options as a strategic investment
- McMillan drives the willing reader to a thorough understanding of concepts/tools often misused, like volatility, put/call ratio, etc. Specifically, the third chapter is a truly inestimable (at least in my opinion) key to harness the predictive power of options.
- This is a no-hype book, if compared with the average of the sector. Mr. McMillan does not indulge or indulges only with tasteful sobriety in describing or promoting his professional services.
In conclusion:
Though if this book is not an easy reading, I would strongly urge the serious professional to read and re-read this book. It is really one of the few eye-opener books I've ever read in this domain.
Full of bright trading ideas.......2007-03-27
This book is a comprehensive guide to a lot of trading strategies, not at all limited to the use of options.
I liked the fact that the author used a lot of real life examples, that helped to understand the strategies and sometimes the mistakes you can make
McMillan on options.......2007-01-10
Very well written and illustrated book on options and how they work. A must have for any serious option trader.
Not for beginners .......2006-12-17
Some of the negative reviews sounded like they wanted a short book that said "Do the following and you will be very rich very quick". Guess what, that book doesn't exist and will never exist. Options are very useful if used properly but to use them properly you need a deep understanding of risk and the mechanics of options. These concepts are mathematical in nature and so is this book. For a variety of reasons just buying a bunch of options is a suckers game as many have learned, but used to reduce risk as a hedge is a different matter. McMillan's other book Options as a Strategic Investment would be the place to start learning. This advanced text explains many things professionals are doing and gives insight to why the markets behave as they do. If you want to get involved with options you need to understand this book thoroughly.
Book Description
Reflecting today's market realities and the new innovative options products available, this fourth edition features an in-depth analysis of volatility and volatility trading; updated information on all stock option strategies, reflecting recent market conditions; buy and sell strategies for Long Term Equity Anticipation Securities (LEAPs); detailed guidance for investing in the growing field of structured products; the latest developments in futures and futures options; and the market impact of the most recent changes in the margin rules.
Packed with graphs and charts to clarify profit and loss potential, margin requirements, and criteria for selection of a position, this classic remains an indispensable resource for investors determined to master the world of options--and profit.
Customer Reviews:
Option Trading Bible.......2007-10-01
Considered by many professionals as the bible of option trading, Options as a Strategic Investment is a must have addition to any serious option's trader. Option trading is widely misunderstood and feared by many stock traders mostly because it takes real effort to really capture the mechanics that is behind this trading form.
This book will help anyone that is beginning in this exciting field to get a grip of all the things that is involved in option trading and is a great reference book for professionals. The lessons are clear and the information is up to date and straight to the point. Studying this book alone or even better...this book with a few other reference books will get you in the right direction of this often misunderstood but highly profitable form of trading. A must buy addition to anyone's trading book collection.
Excellent book!.......2007-09-19
This is an excellent book for the serious option's trader. Very detail and in depth explanation of all different types of option trading strategies. Recommended!
Worth the money!.......2007-06-27
This book is probably the best on the subject. It is usually called the Option Bible. It would be nice if it was updated to reflect some modern trades (e.g. condor).
A Good Investment For Learning More About Options.......2007-06-27
This book is written in clear, easy to understand language with examples that go further to clarify what a specific strategy/technique is. It is not a boring, academic book. The only drawback that I have run into is that the commissions for trades are far in excessive of what is available through internet brokerages. The impact is that sometimes the book will stress that commissions will make a big difference in outcome whereas that is not generally true in my experience. I immediately learned about using in the money covered calls that either produce income or significantly lower the cost per share of a security and profitably but this to use.
Don't EVER do options without this book!.......2007-06-08
After reading The Options Course by George Fontanills, which is a very good book for beginners, you'll want take the next step. This is THE ultimate book on options. It covers absolutely every aspect of options trading. Your mouth will drop after you put your hands on this book. There's a gazzilion ways to cut your risk and maximize profits, and this book reveals every single one in detail. Do yourself a favor and buy this book.
The only problem I see is that the book is really, really boring for beginners and people who are not serious about trading options. I was just learning the basics when I first read it, and it was pretty hard to finish it. Read a couple of other books on options for beginners (like George's) and start paper trading options BEFORE you buy this one. I read a lot of books before I started trading and hated most of them. Now that I know how the real thing works and all the potential, I feel much more compelled to read it all over again.
The book offers an overview of every trade possible, all scenarios and follow-up action. All the examples are very clear and well explained. There's a lot of ways to lock in profits too, all very well described. Even if you've been trading for 10 years, you will be amazed when you read this book. If you read it thoroughly 4 or 5 times a year, there's absolutely no excuse for you not to become a master in options trading. If all the other books are the options college, this is your PhD course.
Book Description
A comprehensive guide for beginners by the leading authority on options
Whether the markets are moving up or down, options remain one of the most attractive instruments for all investors. Profit with Options is a beginner's guide to trading options, delivered in clear and engaging manner by options guru Lawrence McMillan. Starting with a basic explanation of terminology, McMillan explains complete trading methodologies with chapters on direct and contrary indicators, protecting a stock portfolio, and trading volatility. The "Q&A" section in each chapter offers readers a chance to test their knowledge in real life trading situations. Whether you are looking for new investment sources in a bear market or seeking hedge protection in a bull, Profit with Options is a lively, one-stop reference and vital tool.
Lawrence C. McMillan is the President of McMillan Analysis Corporation. He publishes the newsletter The Option Strategist and the innovative fax service "Daily Volume Alerts," updating investors on unusual increases in equity option volume. He is the author of the bestselling Options as a Strategic Investment and McMillan on Options (Wiley: 0-471-11960-1).
Customer Reviews:
Pricey, some good stuff.......2006-01-12
This book could probably be considered the Chevy in McMillan's fleet, with McMillan on Options and Options as a Strategic Investment standing as the Cadillac and Corvette, respectively. It's a worthwhile addition, but if you're new to McMillan, you'd probably be better-served by one of his more well-known works.
This is a relatively short book that provides some tools for using options as direct or contrary indicators, and actual strategies for employing options to profit off expected movement in price or volatility. The book also provides some good guidelines for evaluating indicators like the put/call ratio (index and equity-only), VIX (old VIX, now VXO), and how to interpret volume in an options chain for possible signs of predictive insider trading. Later chapters get a little more complicated, covering some strategies for volatility buying and selling, etc.
The "workbook" end of this volume is rather thin, basically comprised of 12-20 questions at the end of every chapter covering what you've learned, with an answer index in back.
If you're a McMillan fan or new to options, you'll probably like this book. Otherwise, check into his better-known volumes first.
Unfair to be called trashy; but not too far..........2005-02-08
I am jsut wondering why many people take this book as another 'Bible' leveled book. It sounds exactly like an insult to all those real 'Bible' books.
Some other reviewers are right: the editting is lousy, the graphs are irresponsible,...., and some other over a thousand flaws. One can expect to learn more by simply browsing Optionetics forum.
Not worth the price.......2005-01-26
I have read McMillan's other books and found them interesting and educational. But this book does not have any eyeopening material. If you are a beginner in options then this is not for you; if you are not a beginner then this book is not for you also. You probably know how volatility affects option prices etc., The author has just filled the pages with many historical charts of stocks. Instead he could have just illustrated his points with a couple of charts for each topic. Instead of a book this just deserves to be a booklet.
Sloppy editing makes it difficult to learn from this book.......2003-11-28
Profit with Options seems to have been thrown together from a series of talks, with little attempt at editing. The book is replete with mistakes that render the book useless to a novice options trader and frustrating to read for an expert.
The figures are particularly bad, with incomplete or incorrect legends. On page 9, for example, are shown profit graphs for puts and calls. One problem is that the graph for calls is labeled "Put purchase" and the graph for puts refers to buying a call. This is worse than useless to a beginner because it is flat out wrong, and makes the expert wonder whether anything else in the book is sufficiently reliable to trust. Another problem with this figure is that neither graph has any numbers on the axes.
Poor labeling of figures renders indecipherable many of the figures in Chapter 2, which deals with options as direct indicators. Figure 2.1, for instance, does not provide dates on the X-axis, so when the text says something about what happened on July 29, it's difficult to know where to look on the chart. Many of the charts in this chapter include several data plots, apparently including price and option volume, but the plots are not labeled. Sometimes the text refers to put volume and call volume, but the charts don't indicate which is which.
The text often is no more clear than the figures. The discussion on stops on page 133, for example, states: "So you gave back a lot by waiting for your stop to be hit. Or did you Will, in this case you did, but what if the S&Ps had gone on to 1335?" Who the heck is Will, and what does he have to do with anything?
The "review" questions are not really review questions. I expected them to review subject matter that was covered in the preceding chapter. However, the questions are directed to material is not covered in the chapter.
I'm going to try a different book on options. It's just too frustrating to get anything useful out of this one.
Mostly Great.......2002-11-17
This is the fourth book on options that I have read.
I learned a lot from the 2 chapters on using options as indicators to spot insider trading activity and the chapter on volatility.
The chapter on using options as insurance will help me teach my family the bare minimum of what every stock investor should know about options.
The chapter on System Trading was useless to me.
One "feature" of this book that irritated me at first is that the "Review Questions" after each chapter quiz the reader on information that wasn't covered. However, I quickly got over this minor irritation because the answers are useful new information. The section is simply mis-labled. It should be called "Relevant Questions" or "Frequently Asked Questions".
At any rate, I used up an entire highlighter pen and that is good indicator that this book is worthwhile.
One other minor nit-pick; the copyright date is 2002 but the examples are from 1999 and 2000 (pre bubble-burst). There are also a few references to "the video" which leads me to belive that this book is a collection of previously written reports. That's fine because the chapters are self-contained but the editor should have deleted the reference to "the video".
Overall I give it 4 stars.
Thank you to the author.
Book Description
For good reason, investors feel whiplashed by the markets of the past few years. They are looking for some sensible ways to bridge the gap between the consistency of fixed-return instruments and the upside potential of equities. New Insights on Covered Call Writing presents an investment approach that, although used by some traders for thirty years, is largely unknown or misunderstood by individual investors. This book shows how to use this powerful investment technique for success in today's and tomorrow's markets. Most of the professional texts on options devote no more than a cursory chapter to covered calls. Lehman and McMillan's ground-breaking book gives a complete guide to the increased control and lowered risk this technique offers active investors and traders, and will make covered call writing accessible to a broader range of the investing public.
Customer Reviews:
Good if you want to play this game.......2006-03-24
This book is an excellent primer on one of the safest form of the options game, at least from the perspective of the brokerage industry. So, if you're bored with watching your portfolio creep around at a few percent a day, you can write (sell) a call option for $100 on a $5000 investment (for example) and have a pretty good chance of keeping the 2% at the end of the month. Lehman and McMillan do an excellent job of providing return formulae and web resources for further research. But the question remains: do you really want to get into this? (I admit it's addictive). If you do you'll turn into your own stock churner. The brokerage fees aren't too bad if you use one of the discounters, but get ready to do some major capital gains calculations (profits from unexercised options are all short-term capital gains). Here's a hint: this is NOT the way Warren Buffet got rich.
Probably the Best Available on the Subject to Date........2005-09-23
I liked this book and would recommend it to those interested in covered call writing. There are a few things to keep in mind while reading this book:
1- McMillan is a very well established authority on option strategies, I remember reading his options books way back in 1984, when I was the local options specialist at Dean Witter. However, if you read his comments on covered call writing in his other books, he's much more guarded with his support than he is in this text.
2- Nowhere in the book do the authors discuss the extreme increase in time and especially paperwork that is required to successfully implement this strategy. I've always thought of managing an equity portfolio as investing (mostly passive), managing covered call positions is more like work (trading takes lots of time and effort to do it right). That's OK, call writing also reduces risk and gives you a lot more control, but be prepared to invest a lot of your time.
3- In my experience, most people really have a hard time with this strategy. Yes, it's easy to implement, but most dedicated options traders find this a bit too basic for their interests, and it ties up too much capital. Most equity investors have a hard time with the amount of work, loss of long-term capital gains impacts, tax reporting headaches and giving up some appreciation potential.
4- The 20 stock study described in the book is very misleading. For some reason the positions with 163 months of data show covered writing (CW) underperforming a buy-and-hold (B&H) strategy by about 700 basis points. I don't know if this is due to a flaw in the data or something to do with option premiums in the early years of the study. Data from comparing
CW returns to BH returns for periods less than 163 months show identical returns between the two strategies. This is consistent with results from more rigorous academic studies, which generally show underperformance of covered writing of 30 to 50 basis points. This is also consistent with my own experience. This makes sense, since covered writing is slightly to moderately less risky than buy-and-hold investing, the returns should be similar or slightly lower.
The people who usually succeed with covered call writing tend to be really good percentage thinkers, very organized at tracking and analyzing investment results, and good with the basic record keeping. Those who thrive at it really love it, but it's not for everyone.
I wish the book would have addressed these issues. Also, there is a lot more strategy involved in managing a covered write portfolio than was discussed in this book. To my mind, the subject was over-simplified here. I think the book also should have spent more time suggesting cash-backed put writing, which is the sister strategy (and has equivalent risk and returns) to covered call writing.
Still, it's a very good book, and one I recommend without hesitation. I'm a big advocate of covered call writing and cash-backed put writing for those who are willing to take the plunge.
I also highly recommend The Conservative Investor's Guide to Trading Options by Leroy Gross (with a forward also by Larry McMillan).
Good, but not much new..........2004-12-20
This book, despite the title, does not really bring any new insights into the science (art?) of covered call writing. This material has been discussed in many different publications in many different forms. Primarily, the book is concerned with test data that aims to prove that a portfolio with long stock/short calls will outperform a long-only portfolio over time. The actual mechanics of how to do this are missing. Regardless, the data is interesting, and the discussion is useful, especially if you are a novice option trader.
excellent discourse on covered call writing.......2004-04-27
an excellent guide to understanding covered call writing. as a retiree and never having written covered calls, i am convinced it is an opportunity for conservative investors offering potential returns competitive with stock ownership alone and better returns than those available on bonds. mr.lehman covers all aspects, from underlying stock selection, selecting good covered writes, web sites offering all sorts of data and even tax consequences as structured by IRS.
Good book but lacks the "how to".......2004-02-11
This is a good book if you already have a grasp of the basic concepts of covered call writing but are more interested in the details of why covered call writing works rather than how to use the concept to make money. The author spends a lot of time going through esoteric details on black scholes models and comparisons between the buy and hold and covered call strategy but little time is spent on providing real market examples on how to use the concepts in the book to make money. As an investor and trader my main purpose of reading any book is to learn the "how to" practical concepts that work in real market situations to enhance my profits and this is where this book is deficient. Furthermore this book does not get into the art of picking the right stocks and the timing criteria needed to decide when a covered call is a good strategy and when it is a losing one.
This book deserves at least 4 stars for explaining the covered call concept in great details and proving its usefulness. To make the best use of this book you need to couple it with one that will give more practical examples on using these concepts in real life situations in addition to strategies of picking the right stocks to write covered calls on and critical timing strategies. The book that worked best for me was the recently published September 2003 Second Edition "generate thousands on your stocks without selling them " By Elias. Elias's book has extensive real market examples with many innovative and profitable concepts.
Product Description
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Product Description
Acclaim for the definitive guide to options tradingby the nation's top options expert
"In Options As a Strategic Investment, Lawrence G. McMillan demonstrated that he was without peer as an options strategist and educator. McMillan on Options is an outstanding sequel whose 'take-home value' for the reader goes beyond education to include a number of practical option trading approaches and techniques."Bernard G. Schaeffer, FCAS
President, Investment Research Institute, Inc.
"Lawrence G. McMillan is an options guru par excellence. He tracks increased options volume, which often indicates a big move in the underlying stocks. Absolutely must reading for all day traders."Yale Hirsch
1997 Stock Trader's Almanac
"Without a doubt the best options book currently available. McMillan on Options is a must-read for anyone professionally or individually interested in options."Thomas J. Dorsey President, Dorsey Wright & Associates McMILLAN ON OPTIONS is savvy, streetwise, and always ahead of the investment curve. That's why results-hungry options traders, institutional investors, and portfolio managers made his Options As a Strategic Investment a bestseller. Now, Lawrence G. McMillan, the country's top options expert, has written his definitive guide on options trading strategies.
Product Description
A four disc DVD course is also included with this item! This updated course on options strategies brings to life one of the most respected and highly sought after educators in the industry. Rarely will you find a standalone course that delivers strategies this powerful. It's an exceptional look at methods developed from years of trading experience - all bundled together in a six-hour workshop. Updated with current examples and applications and almost 200 new pages in the manual, this bestselling options course is now more powerful than ever. The money-making tactics you'll learn make this the most important investment you make in your trading future. With Larry McMillan s NEW Option Strategies Course you get: · Over 6 hours of presentation from one of the most respected authorities in options. · An 278 page manual that includes Larry s own option strategies · Detailed insight on using the VIX to predict explosive buy signals. · Tactics to hedge against risk in your stock portfolio using volatility futures · Money management strategies that allow you to dial in on the optimal trade size · Proven tips on how to protect your account from the costly impact mistakes Plus the trading wisdom of a legend on strategies and techniques like: -Speculative Buying -Covered Calls -Straddle Buying -Calendar Spread -Naked Options -Credit Spreads -Event-Driven -Skew-Based Every option floor trader that ever sets foot in the pit is told to read Larry McMillan s books. Most of the presenters and options educators around today have learned from Larry and respect him as one of the top authorities on options trading. If you want to learn proven, winning, rock solid options strategies... look no further. Now both novices and experts alike can take their trading knowledge to new levels from the comfort of their own homes - at their convenience - with Larry McMillan s New Option Strategies Course
Books:
- New International Bible Dictionary
- New Trading Systems and Methods (Wiley Trading)
- Options, Futures and Other Derivatives (6th Edition)
- Options, Futures and Other Derivatives (6th Edition)
- Options, Futures and Other Derivatives (6th Edition)
- Options, Futures and Other Derivatives (6th Edition)
- Quantitative Trading Strategies (The Irwin Trader's Edge Series)
- Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- Short-Term Missions: From Mision Tourists to Global Citizens
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Options as a Strategic Investment
Option Volatility & Pricing: Advanced Trading Strategies and Techniques
The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies
The Option Trader Handbook: Strategies and Trade Adjustments (Wiley Trading)
New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing
![McMillan on Options [Hardcover] (Option Trading)](http://ecx.images-amazon.com/images/I/21B0QT0W2DL.jpg)
