Customer Reviews

Trading Index Options

5 star:		(3)
4 star:		(3)
3 star:		(2)
2 star:		(2)
1 star:		(6)

 

 

I was lead to believe that the book targeted traders who want to trade the index vs stock-options. this is basically a book for beginners who are unfamiliar with spreading, arbitrage etc. The book is based on a software, which in my opinion is not that great. Read Natenberg instead.

I found Options Essential Concepts and Trading Strategies (edited by CBOE) to be a better book. I agree with one reviewer who stated the book, Trading Index Options, covers beginning options and does not go into enough depth about using index options.

The good news is that this book is very nicely done, providing a useful foundation to beginner and intermediate options traders. I found that I learned quite a lot about the interactions between option pricing and the various factors influencing pricing. The author provides numerous case study examples utilizing the OP-EVAL(TM) software included with the book. A majority of the book contains detailed examples describing how to use the software and interpret the output. The bad news is that the software will not run on current Windows operating systems (Windows 98 or newer). So don't buy the book if you want to try the software on your own. Efforts to contact the author, through the publisher McGraw-Hill, about the possibility of updating the software, have been unsuccessful. Otherwise a good book.

A few years back, Bittman wrote a well-received fundamental look at equity options entitled Options for the Stock Investor. This time around the author delves into the world of index options.

Trading Index Options covers a lot of material and shines at helping the trader build a foundation to expand upon. This strength is clearly evident early on when Bittman defines most common option strategies. From the simple to the complex, each page has a graph illustrating profit and loss characteristics at expiration along with some insightful comments on each strategy. To the author's credit he mentions transaction costs as a major factor hindering more complicated strategies.

In ensuing chapters Bittman covers basic buys and sells in detail, along with basic spreads, straddles, strangles, and ratio spreads. The book is light on math and seeks to make these strategies and the reasons for their employ easily understandable.

Included with Trading Index Options is a software program entitled Op-Eval 3. The program can be used to calculate implied volatilities, greeks, compare options, and graph positions. Perhaps of greatest utility, however, is the software's ability to allow you to look at how changes in underlying prices and time decay will affect your position.

While advanced option players may find they've already compiled much of the information Bittman presents, it remains a solid sourcebook. Beginners and intermediate players will be hard pressed to find a clearer or more concise reference tool. Easily worth the money you'll pay online and a nice addition to anyone's option library.

This book is based largely on a software package which comes with it. The software allows only one install. If you have to reformat your hard drive (happens to me) chuck the whole works. They want more $$ for a replacement program than the book costs. If you must buy it, copy the diskette before install. There is no warning. Software is for European Options, not American. You can get better freeware. I regard this as highly amateurish, and feel really ripped off. The book itself is ok, but worthless if you lose the software.

The Warranty statement requests defective diskettes be sent to their Blacklick, OH Customer Service department. It's been nearly two months since I complied with this request and thus far have not had the courtesy of an acknowledgement, much less a replacement as promised. Shame on McGraw-Hill. I begrudge them the one star needed to implement this review.

The software is defective and the author and publisher, in the unlikely event you can get either to respond, only cloud the issue with disingenuous assurances.

The book is very good from a professional options trader and teacher.

A lot of the comments from people who recently bought this old (but good) book for the software, were not diligent enough to think about contacting the author. I contacted the author and he mailed me an updated version of the software that comes with the book. He was very kind and cordial.

This book demystifies the factors that make options such an attractive and powerful trading and investment tool. Bittman's clarity leaves no misunderstanding or ambiguity about how things work in plain language and steers you clear of common beginners' mistakes. The included software provides a hands-on interactive learning experience to reinforce ideas introduced in the book and is a useful tool to evaluate potential trades.

The sections that lay out trading plans and strategies present a straightforward and disciplined approach to identifying and evaluating attractive trading opportunities. Although geared to options, these are helpful to consider no matter what markets or instruments one is trading.

Read Bittman first to get a solid foundation, then move on to the MacMillan books for the post-grad experience.

An excellent value for the price!

I was eager to use the software that came with this book, but since my PC runs on Windows 98, it will not install. They should update the software so it will run on later versions of Windows before they sell the book again, or least ask you what version of Windows you are using before you place the order.