Most helpful critical review
120 of 128 people found the following review helpful
Great style, poor contents
on December 4, 2008
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."