The Complete Guide to Option Selling, Second Edition [Hardcover]

James Cordier (Author), Michael Gross (Author)

Book Description

Publication Date: August 14, 2011 | ISBN-10: 0071622373 | ISBN-13: 978-0071622370 | Edition: 2

The growing popularity of selling options is undeniable, yet it remains one of the least understood concepts in the trading world. This clear and engaging guide helps you enter the market with the confidence you need and generate profits with a consistency that may surprise you.

Now in its second edition, The Complete Guide to Option Selling is the only book that explores selling options exclusively. Since its original publication in 2004, much has changed in the world of options, and the authors have provided key updates to help you take advantage of these changes. You’ll find all the information you’ll need to start writing options profitably in equities, stock indexes, and commodities and maximize your returns, minimize your risk, and even manage “black swan” events.

With more than 38 years combined experience in options trading, the authors explain:

• Basic mechanics of how professionals sell time premium
• The misunderstood subject of margins on short options
• Myths about option writing— and why they still circulate
• Key factors to consider when building an optionselling portfolio
• How to control risk—the right way
• Effective, time-tested strategies for selling premium
• Common mistakes beginners make and how to avoid them

Option selling provides a high probability of success that is difficult, if not impossible, toachieve in any other investment. The Complete Guide to Option Selling illustrates how to take full advantage of this unique approach and make it a profitable, high-yield component of your overall portfolio.

Don’t listen to the popular myth that option selling is only for professionals. The secret is out, and individual investors can now run with it. Read The Complete Guide to Option Selling and learn how you can level the playing field with the big guys. It’s a lot easier than you may think.

Editorial Reviews

From the Back Cover

Option-writing strategies for high returns in every type of market

Written in a style anyone can understand, The Complete Guide to Option Selling provides the strategies you need to consistently profit in a popular but poorly understood market.

This second edition contains all of the foundational information from the original edition and addresses recent changes in the market with brand-new material, including:

• New chapters on volatility and portfolio building
• Fresh insights into option spread trading in the “new” market environment
• How volatile markets create the ideal conditions for selling premium—and how to profit when everybody else is running for the doors
• New risk-management strategies for the 21st century, including how to manage the proverbial “Black Swan”

Focusing on why, what, where, and how of writing options, The Complete Guide to Option Selling is a peerless guide for seamlessly integrating options into your own investment program.

“Will change the way I look at the topic forever.”
—Gail Osten, SFO magazine

“The Complete Guide to Option Selling is an excellent read.”
—Your Trading Edge magazine

About the Author

James Cordier is president and head portfolio manager of Liberty Trading Group/ OptionSellers.com, where he manages assets for a global client base. Cordier’s firm helps individual investors maximize the use of option selling in their portfolios. He is regularly quoted by national financial media, including The Wall Street Journal, CNN Money, and Barron’s Weekly, and is a regular guest analyst on CNBC, Bloomberg Television, and Fox Business.
Michael Gross is director of research at Liberty Trading Group/OptionSellers.com. A registered broker, he writes articles that appear regularly in Futures magazine, Yahoo! Finance, and Forbes.com.

More information on their firm is available at www.OptionSellers.com.

Product Details

• Hardcover: 320 pages
• Publisher: McGraw-Hill; 2 edition (August 14, 2011)
• Language: English
• ISBN-10: 0071622373
• ISBN-13: 978-0071622370
• Product Dimensions: 9 x 6.1 x 1.1 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 3.1 out of 5 stars  See all reviews (29 customer reviews)
• Amazon Best Sellers Rank: #87,752 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

15 of 15 people found the following review helpful:

3.0 out of 5 stars A good book. But the wrong title, February 3, 2010

By 

AquaJeff "AquaJeff" (Long Island NY, USA) - See all my reviews

This review is from: The Complete Guide to Option Selling, Second Edition (Hardcover)

I enjoyed this book and if it was titled "The Complete Guide to Selling Options on FUTURES." I would have given it another star. I read the reviews by others that complained that it was really guided towards futures options and still bought it because I wanted to learn about this market. But the title is misleading. I thank the other reviewers who wrote that because I would have been annoyed if I bought this book thinking it was a complete guide to trading options. The book is well written, thorough ( on futures options)and a good read. I learned things and that is one of my major criteria for any book like this: Did it have any new information for me? And it did.
I used to be a professional bond trader. I have Series 7, 63, 8 & 24 licenses. So I am not a novice to the markets but my exposure to option trading was limited to my own account.
The authors are part of a full service broker and towards the end of the book they really push full service brokers against discount or "order clerks." And the only full service broker listed in the resource section is theirs.I would prefer less spin towards their business and more listing of pros and cons of both as well as listing some other full service brokers that specialize in options and futures. That being said. If you're looking for a book on how to trade your own account I highly recommend this book.
That may seem contradictory but the authors really do a good job telling you what you need to know to trade successfully. If you can't do what they recommend or do not wish to spend the time you better not trade these options on your own.
As for me. I just might become a client of theirs. I need to do more research first.

28 of 32 people found the following review helpful:

5.0 out of 5 stars Excellent book -- Highly recommended, October 2, 2009

By 

A small trader - See all my reviews

Amazon Verified Purchase

This review is from: The Complete Guide to Option Selling, Second Edition (Hardcover)

Probably one of the best trading books I ever read.

This book is clearly written by an experienced trader. You will not find a lot of math or complex explanations. Even the greeks, volatility and similar are mentioned very little. But it does provide very useful information and advice, oriented to implement a sound strategy that works.

It does a great job demystifying the risks of selling option, which is usually that make retail trailers afraid of using this lucrative trading approach.

In other review, someone complained this book uses a lot future options as opposed to equity options. Yes they do, and if you have an open mind, you will be glad they did so. Usually retail traders see futures as very risky, and therefore assume future options will be even more riskier. With the approach proposed by this book, they can be traded with a well managed risk, much lower than dealing directly with futures.

As they say in the book, when you start checking the marging required to sell future options as opposed to sell equity options, you will realize that you were missing a whole new trading world. Equity options usually require much larger margin, and therefore your ROI is very tiny. With futures options your ROI can be huge, and with a controlled risk. This is why they devote several chapters to introduce you to commodities trading. They explain it clearly and are very honest on what works and what doesn't.

Interested in trading options AND earning money?
This book is what you are looking for.

49 of 59 people found the following review helpful:

2.0 out of 5 stars Not what It claims to be., October 16, 2009

By 

John W. Robertson "LittleJohn" (Dallas, Texas) - See all my reviews
(REAL NAME)   

This review is from: The Complete Guide to Option Selling, Second Edition (Hardcover)

The book has some decent content. However, after purchasing I returned the book because it is aimed at the Futures Market. It does not let you in on this little fact until you are reading the book. It claims to be for all markets. It is not. It covers a topic and then tells you what the differences are compared to equities. I have traded both. If you wish to learn more on covered calls on Equities or ETF's this is NOT THE BOOK TO USE.