Customer Reviews

Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market

5 star:		(9)
4 star:		(0)
3 star:		(3)
2 star:		(0)
1 star:		(2)

 

 

First of all I don't read the book. My review is not on the book but on the reviews itself. So, if you don't want to read my review, this is the place to stop.

Still here? OK
The reviews available to this date have some common things that I found... strange
Let's see:
- All the five reviews were written on a period of one month, ending on april 21, and then... silence.
- All reviews have 5 stars
- All reviews have about the same length
- Look at the words used: "fantastic!", "by far the best book on options ", "great book for beginners but an even better book for the seasoned trader" (?) by the way, this last one was written by a person who did only 1 review
- 3 of the 5 reviews were written by people with only 1 book review, and the ones with more than 1 review, did no other reviews on options books. There in only one review on "The complete idiot's guide to options" (By the same person who said this is the best book on options)

Well, all the things listed above get me very suspicious.
This is the kind of reviews that get me away from the books, instead of towards it. Make your on judgment...

I agree with both of the dissenting (less than 5 star) reviewers.

This book really offers very little insight into trading the functional differences between underlying stocks and commodities. The examples in the book do use commodities for calculation purposes and this does give the reader some insight into planning trades. But no real substance arises in this book in regard to what the important differences are between trading options on stocks and commodities other than references to the probably more pervasive trading ranges of commodities. This can be summarized in one sentence. It does not take a whole book to make that point.

The vast majority of the material reviews option trading strategies using underlying commodities. In other words, other than using a lot of commodity-based examples, very little if any new information is presented in this book. Seasoned options traders will not gain any new perspectives.

I also agree with the interesting observation by the 1 star reviewer. The 5 star rave reviews have a suspicious similarity.

This book is ok.
It contains a chapter that specifies the differences between stock options and commodity options, and the rest describes strategies using options.
There's nothing really new. The crash course is somewhat not clear, making me think that you should read something else before this one.
However, the strategies are well documented.

All in all, it is ok, but I have two main criticisms :
- this is not a "commodity options" book ... it is an options book, with commodity examples, and a chapter that describes the differences between commodities and stocks ... but the rest is pure "underlying-neutral" options
- this book seems to be an add for the brokerage service of the author... a lot of books are written in this way but here it really gets annoying, as you are reminded approximately on each page that you need a competent broker with direct access to the floor ... which is what the author is !

All in all, the book is average, or maybe even better than just average : the strategies are well explained, with graphs, easy to read and understand ... not a five star but an easy four star ... BUT I have to remove a star because this book is not what it claims to be !

A good book that discusses options strategies specifically dedicated to the futures market is "Trading Options To Win" by Johnston : funny to read but difficult to grasp, as there's no graph in it.

Great resource for trading and researching strategic option plays & futures... A must have for the beginning to novice trader!
Very helpful and very well written. Application of the methods discussed are as easy as reading them of the page...
These guys know what they're doing and you can tell by how well written their explanations are. Clear and concise.

I purchased this book thinking it would be filled with information about the commodities market. After all, the title was Commodities Options. All I found was maybe 2 or 3 pages about commodities and their contract sizes. Nothing about seasonality
or the best way to set up the differences betwen contracts owing to the partculars of commodities. I was going to return it immediately, but lost the mailing piece. False advertising at its best.

It is just a 99% rehash of his other option book.

Commodity Options in clear and concise while remaining entertaining. This book covers option strategy in detail, including calculating profit, loss and risk. What sets it apart from the others is its inclusion of commodity market characteristics and the pitfalls that traders often fall into when trading options on futures. I like the way that Commodity Options focuses on practicality in trading rather than academic theory. For example, along with the mathematics and probabilities involved, readers are made aware of the traps that can't be predicted or calculated by equations.

I have read nearly every option book in print, studied option theory in doctoral asset pricing classes, and hold a Ph.D. in finance. My doctoral dissertation on slippage in the futures markets was sponsored by the Chicago Board of Trade and included analysis of the futures option markets. I am also actively involved in research in the options markets to this day in equities as well. As a researching professor of finance at the Graduate School of Business at the University of Puerto Rico I teach futures, Forex, and option trading in basic, intermediate and advanced derivative classes at the MBA and doctoral levels. Commodity Options is the best book I have ever seen on futures options far surpassing Lawrence G. McMillan's so called "classic" entitled Options as a Strategic Investment. The reason for this is that many option gurus like McMillan lack the experience in the trenches of Paul Brittain. In fact, the real genius of this book is the years of experience, some of it painful, that Mr. Brittain has accrued as a true industry insider and options operator. Some of the warnings about specific futures option positions are beyond the recognition of importance of beginners as Paul Brittain carefully outlines the unique environment of the futures markets, lower liquidity than equities for instance, that lead to problems in employing strategies commonly touted by futures option course, book, and newsletter writers more interested in a fast buck than true and proper education. Hence, if you are a beginner read this book at least five times and take extensive notes.

Not only do I recommend Paul's book but I also know that if you are serious about trading futures you would do well to subscribe to his futures option newsletter "The Optionologist" and should regularly attend Mr. Brittain's webinars at Commodity Trading School.

Prof. Scott Brown, Ph.D.
Associate Professor of Finance, University of Puerto Rico
Author, The Worry Free Wealth Guide to Stock Market Investing: FREE BONUS: 7 Hours of Audios! (Volume 1)

A key reason for buying this book was to understand the difference of trading options on commodities as an underlying asset. In the introduction the authors explains that options on commodities are different than on stocks and therefore strategies that works on stocks might not work as well on commodities. I fully agree, and bought this book to learn more about these differences.

This book walks through a number of different option strategies (all used in the stock market), but fails to explain wherein the different lies between options for stocks or commodities. The authors also claims that selling naked put exposes you to unlimited risk, which is incorrect as a commodity (or stock) can not go lower than zero, so your risk is in fact limited.

If you are new to commodities and options this book is a good introduction to the subject. For more seasoned traders this book offers no new knowledge.

I was glad to find a book about options that wasn't completely over my head. It was written to help people like me who was depending on their broker to know the ropes. I am a lot more informed now and understand more of what my broker tells me. I feel more comfortable communicating with my broker. The book is worth every penny!

This was the easiest and most organized book to read. Very informative and well written. I started this book thinking I would read it a little at time and ended up reading the entire book in one day.