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Understanding Options Paperback – September 22, 2006


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Product Details

  • Paperback: 240 pages
  • Publisher: McGraw-Hill; 1 edition (September 22, 2006)
  • Language: English
  • ISBN-10: 0071476369
  • ISBN-13: 978-0071476362
  • Product Dimensions: 5.5 x 0.6 x 8.4 inches
  • Shipping Weight: 9.6 ounces
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (89 customer reviews)
  • Amazon Best Sellers Rank: #186,132 in Books (See Top 100 in Books)

Editorial Reviews

Review

Interview with Michael Sincere about his book, Understanding Options

bit.ly/D8CZG
--The Writer's Coin

Review of Understanding Options
 
bit.ly/mh6qs8
--My $10,000


Review of Understanding Options:

bit.ly/yzt53I
--Stockinvestingsimplified

From the Author

Michael Sincere is a columnist and the author of several books on investing and trading including Understanding Stocks (McGraw-Hill), All About Market Indicators (McGraw-Hill), and Start Day Trading Now (Adams Media). 

Sincere also writes a monthly column for MarketWatch.com, "The Long-Term Trader," and has been interviewed on dozens of national radio programs. He has appeared on several financial news programs such as CNBC and ABC's World News Now to talk about his books.

You can learn more about Sincere at michaelsincere.com.

More About the Author

Michael Sincere (www.michaelsincere.com) is the author of a number of investment and trading books, including "Understanding Stocks 2nd Edition" (McGraw-Hill) the bestselling "Understanding Options 2nd Edition" (McGraw-Hill), "All About Market Indicators" (McGraw-Hill), "Start Day Trading Now" (Adams Media), and "Predict the Next Bull or Bear Market and Win" (Adams Media).

Sincere has written hundreds of columns and magazine articles on investing and trading, including a bi-weekly column for MarketWatch, "Michael Sincere's Long-Term Trader." He has been interviewed on dozens of national radio programs and has appeared on several financial news programs such as CNBC and ABC's "World News Now" to talk about his books.







Customer Reviews

Sincere does a great job of explaining options.
A. Eckelberry
This is a good book for a beginner to understand the Option trading.
Lilian S. Ho
The book was a surprisingly easy read, very clear & understandable.
Carlo

Most Helpful Customer Reviews

174 of 185 people found the following review helpful By Deron Baker on June 30, 2007
Format: Paperback
I was in the middle of writing my own book on retirement investing, which I have now finished. During that process I read many different books to get a well-around education on the subject. One area that always fascinated me - but seemed overwhelming - was the arena of stock options. I read the Futures and Options for Dummies book, only to then become more confused. I kinda gave up on the subject until I stumbled upon Michael Sincere's book in the store.

Don't let the size of the book fool you. The author packs quite a lot of information into these 221 pages. He explains the world of stock options in a very easy-to-understand format. Michael debunks many myths about options and shows you that while some types of options are highly risky, some are not.

This book is the launching pad to get you started in the world of stock options. You will eventually need to read more if you wish to purchase or sell options, but this book becomes your foundation. The nice thing about this book is that you will quickly learn whether or not options are right for you. Personally, I do not want to participate in options. However, I was able to make an informed decision based on the knowledge found in this book. I am still glad I read the book and highly recommend it to anyone who is curious about stock options.
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119 of 126 people found the following review helpful By Paulo C. Rios Jr. on December 4, 2008
Format: Paperback Verified Purchase
Most people who are familiar with stocks and have never traded options before tend to treat options like stocks. The main strategies exposed by this book are the naked purchasing and selling of options with no spread, which are the very ones that a beginner will try to use (since they seem similar to stock trading) but should not. The only exception, the covered call strategy, has a low risk but also a very low return too and doesn't protect the investor against a major contrary market movement.

One can't deny that the author's intentions seem to be the best possible. He has a friendly manner and tries to motivate the reader all the time. The writing is very pleasant. But, unfortunately, style and intentions are not substitute for a poor treatment of a subject matter.

Armed with the information from this book, the beginner will hopefully find that some key knowledge is missing. For example, the author's explanation on how to adjust a naked call that didn't go well pales in comparison with the outstanding treatment and alternatives presented by McMillan in "Options as a Strategic Investment" on the chapter on the naked purchasing of calls.

For a much better treatment and introduction than this book, try "Get Rich with Options" by Lowell. Its title could be improved, but its contents are just superb. Any comparison with this book under review is simply unfair.

As Einstein once said, "make it simple but not too simple."
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75 of 81 people found the following review helpful By Its just me! on May 8, 2008
Format: Paperback
Reading a book on Options Trading is usually a daunting task. While it is true that statistical probabilities, The Greeks and mathematically determining an overpriced or underpriced option all play a part in option trading, in the beginning, this often confuses and intimidates a novice.

Michael Sinceres' book is different. He leaves the mathematics alone. In very simple language, Sincere walks you through the four basic option trades:

1. The Covered Call.
2. Buying a Call.
3. Buying a Put.
4. Selling a Put.

What you may not know is that most brokerages will limit a beginning option traders to these 4 trades anyway.

As if he were sitting at your kitchen table, Sincere actually takes you step- by-step, through each trade. No, this is not a complete treatise on option trading but it is a very good start.

It is true that the key to option success is choosing the right underlying stock. If you have never bought a stock, his book on stock trading would be a better choice. It is also true that options are a form of gambling and anyone who says their "system" guarantees success is probably selling something very expensive.

If you have experienced trading stocks and are looking for your first option book, this would be the one I'd recommend.
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27 of 28 people found the following review helpful By Amazon Customer on March 2, 2009
Format: Paperback
I recently purchased two books on options trading. I'm a beginner so I needed something that clearly explained how options trading works. Understanding Options by Michael Sincere is an excellent book for a beginner. The other book that I purchased is Options Made Easy (2nd edition) by Guy Cohen. If you're a beginner, Option Made Easy isn't so easy. I wouldn't recommend this for a beginner. Stick with Michael Sincere in Understanding Options. It's a worthwhile investment!
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22 of 24 people found the following review helpful By William E. Steele on November 25, 2008
Format: Paperback
I have been a stock market investor for 25 years. Over that time I think I probably learned, in bits and pieces, everything in this book. The problem is I didn't have a complete picture of what options were all about or how many of the elements of options trading (i.e. delta, spread, volatility, etc.) related and affected the potential of any given option or strategy. Therefore, I never bought or sold a single option. Had I read this book years ago my overall investing performance would have been greatly improved and the number of sleepless nights greatly reduced.

This book is an extremely easy read for anyone with a general idea of what options are about and I suspect would not pose an overwhelming challenge even for someone with no knowledge at all on the subject.

The most exciting outcome of my reading this book is I placed my first options trades today. A few of my trades today were for hedging purposes on my existing portfolio and a few were for speculation.

I doubt I will ever become a "day trader" or an options guru, but I now can stay active in my portfolio, blending modest hedges and speculation for what almost certainly will be a better overall outcome. Thank you Mr. Sincere.
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