Customer Reviews

Put Option Writing Demystified: Earn Double-Digit Cash Returns While Waiting to Buy Stocks at a Discount

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I would highly recommend this book to any stock investor who is looking for some new ideas to earn back the money they've lost in the bear market. Who ever heard of being paid immediate cash to wait to buy stocks at a lower price? That's what this book taught me to how to do. It sounds too good to be true, but I know it works because I've done it after reading the book. I wanted to buy the Nasdaq 100 Trust (QQQ) at a lower price. Instead of just waiting to see if it went lower, I wrote put contracts on the QQQ at my buy price using what I learned in the book. I collected $485 in cash in my brokerage account the next day. The stock didn't hit my price, so I didn't buy it the first month, but I got to keep the $485, which was a 24% return on an annual basis. The next month I did the same thing (collected $625 this time). My price was hit and I bought the QQQ shares for 15% less than the price when I started this. In the meantime I collected $1,110 while I waited to buy my shares for 15% less. This is explained so well that anyone can do it. Nobody I know seems to know about this. It's all in this book.

The title for this book is patently misleading. Introduction to put options would be more apprpriate; nothing is 'demystified'; granting different levels of experience in options trading if you know the difference between a put and a call save your money. As is the usual with these types of books half to two thirds of the book is devoted to explaining options.

This book, and its companion on calls, is a terrific combination. It demonstrates a very simple option strategy that can be consistently profitable. It is one of the main factors behind how I went from earning 8% per year to 30% per year.

What this book will teach you: It will teach you how to write (sell) cash covered puts on exchange traded index funds (QQQQ (NASDAQ) or DIA (Diamonds, DOW 30)). I don't actually use ETF's. I use individual stocks, and for several reasons. 1) I don't like every stock in the index. 2) Indexes tend to have less volatility than individual stocks, and therefore smaller option premiums. 3) I like to work with stocks that I am familiar with and have used for years. 4) The stocks I choose also have some defensive characteristics to them.

Despite this, the concepts taught are identical for individual stocks vs. ETF's. One of the nicest features of the book is it includes some Excel spreadsheet templates that are easy to type in, yet very useful in evaluating potential positions.

If you want to learn about options, this is not the first book you should read. Get a primer on options first that covers the how options work and all the basic strategies. This could be your second book. The advanced option trader will likely be bored with the material.

Good trading.

I am an experienced investor that initially was somewhat intimidated by the world of option writing. But after reading Kadavy's "Covered Call Writing with Exchange Traded Funds (ETFs)" and "Covered Call Writing with Qs and Diamonds" -- and having success, I decided to give "Put Option Writing Demystified" a read. I found it to be equally easy to read and follow. As a result, I have been able to supercharge the returns from my Call Writing strategy!

I ordered the book new, I found the data useful and assisted my in proving a point that i needed to prove. Highlighting and tabbing book caused ink to distort to the point of making the pages blank. Ink just falls off page. I expected better for the cost....

Dear Author!

Just bought two books from Amazon, Put option writing and covered call writing. Thanks, your books are very useful, I will recommend to some of my friends about these wonderful books

Thanks again,

Readers
Kenny