Customer Reviews

Option Theory and Trading: A Step-by-Step Guide To Control Risk and Generate Profits (Wiley Trading)

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I have just finished reading Ron Ianieri's book "Options Theory and Trading" and it is by far the best basic option book I have read. Ron has the ability to explain a complex subject in such a very clear and concise way that it is a pleasure to read and is the perfect book for anyone wanting to trade options. This is the first of a series of three option books that Ron is writing.

Having struggled with McMillan and Natenberg I only wish that I had this book when I first started trading options. It would have made life much easier. This is a must read for learning option trading.

I purchased this book after buying Options GPS, a 20 CD course from [...]featuring Ron Ianeri covering the same material. I learn better from books than lectures. I could have saved $2,400 by just buying the book.
Master this material and you will know more than some personnel in etrade service departments!
Learn how to make money in bull, bear or stagnant markets while limiting your risk. Ron Ianeri is clearly one of the best options teachers anywhere. If you can afford only one book on options, get this one.
Tightly structured as befits a textbook. Clearly and logically organized. Can be read and understood by a motivated high school student.

Ron Ianieri is a tease. He bares the option pricing models one variable at a time accompanied by simple, seductive explanations. Your heart begins pounding with anticipation - what will come next! Chapter 3 (Option Theory) is a masterpiece (or is it a mastertease?) in explaining option pricing model without resorting to the mathematical equations. Being a reader who relishes the mathematical treatment as in Jeff Augen's `The Volatility Edge in Options Trading' (an elegant, effective, analytical presentation of Option trading strategies without eschewing mathematical rigor), I can't believe that I thoroughly enjoyed Ianieri's treatment without equations. It is not surprising that Ianieri is a master teacher, since he is the father of his `Option Theory and Trading Course'. The Option Theory discussion starts with an easily understood pictorial explanation of the normal distribution (Bell Curve), introduces the binomial model and finally the VSK (volatility, skew and kurtosis) model to account for the log normal distribution of returns.

The Greeks (delta, gamma, theta, and vega, which express the sensitivity of the options price with respect to the price of the underlying, time to expiration, and volatility) are covered extensively in chapter 4. Ianieri's treatment of the Greeks is excellent, especially the discussion of the `Volatility Smile' and `Volatility Tilt'. Ianieri even covers the second tier Greeks (V-Delta, T-Delta, V-Gamma, T-Gamma, V-Theta) although he has chosen, justifiably, to ignore the interest rate related first-tier Greek Rho.

Ianieri's penchant for avoiding mathematical equations makes for longer discussions; sometimes a simple equation is worth a hundred words! For example, the listing of the several synthetic positions could have been easily presented in fewer words by including a simple equation for put-call parity. The figures 5.1 -5.6 showing the synthetic position equivalence using P&L diagrams would be more useful if they had some scales and labels (similar to those in Chapter 6); this would have prevented the inclusion of the erroneous Figure 5.6 (synthetic short-put).

In Part II (chapters 6-11) Ianieri introduces basic option trading strategies (Covered Call, Covered Put, Protective Put, Synthetic Put and the Collar). Each strategy is clearly explained, with examples of real ticker symbols. Each strategy discussion ends with a synopsis, worth its weight in gold. I recommend that even if you skim through the chapters pay close attention to the synopsis, which elucidates the salient points of each strategy under discussion.

The author states, `as good as the options are in conjunction with stocks, they can be even better when traded against each other' - and then goes on to prove his point with a discussion of the advanced strategies `Spreads, Straddles and Strangles'. Again each strategy is clearly explained, with examples and concluding with a solid gold synopsis. The final chapters include discussion of the combination strategies (Butterfly and Condor).

Ultimately, a trader wins if he is right (whether he bets on higher/lower prices or higher/lower volatility) and loses if he is wrong. The only thing he can do is improve the odds of being right and hold the losses to manageable levels when he is wrong. Ianieri shows the beginning/intermediate reader how it can be done.

This book definitely belongs on your learning/reference shelf if you are serious about understanding about option trading and profiting from it.

The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets

I suppose there are other books appropriate for beginning option traders and it is a matter of finding one that fits. I'm not an easy learner of options theory and strategy but this author connects with a clean, clear, no-nonsense writing style and really hammers home the important points newbies should know. He makes sense of a subject I thought impossibly tedius/complicated and he does so without relying on heavy math models. I have finished parts 1 and 2 and it seems no stone is left unturned. Looking forward to part 3. As an options reference and teaching guide, this book works.

I'm only on chapter 4. I have found these first 4 chapters somewhat hard to muddle through because I'm not a completely verbal learner. There are several places where a nicely constructed illustration would really make this good book much better. Content seems solid and well-researched. If you are a visual learner, you will struggle with this content.

Ron's book is a top notch source of quality options education. Ron does a great job of covering options in a clear, easy to comprehend style. He covers the important aspects without putting the reader to sleep in the process. Ron builds a solid foundation of theory,then progresses from there, showing how to use that theory for practical application. Option theory, option greeks, synthectic positions, single option strategies and combination strategies are all expertly presented. You get, not only the knowledge, but how to apply that knowledge in the markets. All in all, a really nice piece of work.

Ron Ianieri is a great teacher of Options Theory and Application, in my opinion.

I own dvd's by all the greats; McMillan, Bittman, Fontanils, Headley, Frey, Natenberg, etc.; and I personally feel that I've learned the most from Ron, due to the clarity, understanding and experience that he brings to the table.

In a field of very intelligent people, he's the best.

I have taken his classes (as have some of the other reviewers here), and the unanimous nature of the shared experience of his students might be a good clue: if you're really serious, you want to learn from him!

He loves to say, "There's no black and white in the markets", meaning that the overly simplistic desire for one "best" technique is inadequate for the subtleties and complexities of real trading, in a real, ever-evolving market context.

If you can "handle the truth", in all its dimensions, he can lead one down the path of learning, to adaptable and durable knowledge and expertise.

Like Pat Morita said in "The Karate Kid", "You're job learn, my job teach", for the student who pays their dues and does the work, one couldn't ask for a better "Sensei" in options to prepare one for the financial life-and-death battlefield of the markets.

I just recently finished his course and came away with much more knowledge about options than I have after reading numerous books on the subject. This man has a gift of relating knowledge of complicated subjects to a simple easy to understand format that anyone can relate to. I've read other books on this subject by other authors and came away scratching my head thinkin this guy's talking Greek but now I understand the Greeks after having Ron explain them his way. I'm glad there's sombody out there demystifying the big mystery of options. I think being armed with the information he has relayed in his books and other products and some paper trading he may have turned out another investor in the world. Thanks Ron, Now I Understand!!! Option Theory and Trading: A Step-by-Step Guide To Control Risk and Generate Profits (Wiley Trading)

According to his own bio, Ron Ianieri is a big name, big time, much sought after speaker on 0ptions. So I was looking forward to this book, his first, on options trading. Unfortunately this is simply a basic book on options strategies and adds nothing new to such classics as Lawrence Mcmillan's Options As A Strategic Investment. Lenny Jordan and Nick Kafortis have also written fine tomes on options for the beginner. Another author, Guy Cohen has a couple of books that fit the bill also. However, this book is simply a discussion of basic option strategies, sprinkled with a bit of option theory. I cannot recommend purchase except for absolute beginners to options.

This book is very informative for the beginning options trader. Ron has an impressive resume, and goes over all the basics in a clear manner.