- Hardcover: 416 pages
- Publisher: Leathers Publishing; 3rd edition (June 30, 2007)
- Language: English
- ISBN-10: 1585974242
- ISBN-13: 978-1585974245
- Package Dimensions: 9.1 x 6 x 1.2 inches
- Shipping Weight: 1.8 pounds (View shipping rates and policies)
- Average Customer Review: 101 customer reviews
- Amazon Best Sellers Rank: #653,775 in Books (See Top 100 in Books)
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Generate Thousands in Cash on your Stocks Before Buying or Selling Them: Third Edition Hardcover – June 30, 2007
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About the Author
Samir Elias has a Doctorate in Engineering from the University of Massachusetts and a Masters in economics from the University of Technology in the UK. He worked as a research engineer developing new products at two different private companies in the US. In 1994 he raised venture capital to start his own engineering company which was sold to an international company in 1999. Between 1994 and 1997 he was involved in a real estate investment partnership in Ohio and Massachusetts. During that period he was intrigued by stock and option trading and how mathematical principles can be aplied to enhancing trading and investment profits. In 1997 , using his experience in computer modeling of multiphase dynamic systems which was the focus of his doctorate dissertation, he developed a mathematical approach using convergence divergence charts to model long term stock movements .This model was simplified enought to obtain effective results using hand drawn charts once a week. With the proliferation of the internet and increased interest and accessibilty of short term trading he developed unique combinations of technical indicators to predict short term stock movements with over 75% accuracy. In 1997 , he sold his real estate partnership and started trading part time at Insight Securities in Wichita KS until they closed in late 1998. Presntly , he is a full time option and stock trader and investor.
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Top customer reviews
Before moving to my current location, I belonged to a local trade group run by the author with a maximum allowable membership of fifty. In the eight months I belonged to the group, I saw traders including myself make profits above $3000 per week using methods most of which are detailed in this book, as well as the other trading book written by the same author.
After moving to my current location , I continued implementing the strategies I learned from the trade group as well as others from the book. Although my results do not match those obtained when I was an active member of the group, I am able to cash in between $30,000 to $50,000 per year on a 150,000 trading account.
I obtained these results by selling options on three to five stocks each month and collecting a net premium of near $1000 per stock. This is easily achievable if you pick the right stocks using ideas from author's other book "Explosive Stock Trading Strategies" and then combine them with concepts from this book to determine the right option parameters such as implied volatility , premium and expiration date.
For those who are interested in specifics, I start by scanning for stocks that meet the " Falling Knife" and "Momentum Shift" setups in the book "Explosive stock trading strategies". These setups offer, in addition to a high probability of upward reversal , unique option properties. These are :high option implied volatility and high vega, implying that the premium moves significantly with moderate moves in volatility. These properties allow selling low risk out of the money puts at strikes below market price for hefty premiums. Once the stock moves up the high vega results in a significant drop in the premium allowing me to buy back the option often for less than one quarter of the premium I obtained. Try this strategy and you will see that you do not need more than a handful of such stocks to create a respectable monthly income on your account.
A recent example is my AZN trade. The stock formed a falling rectangle pattern described in the book as a very potent bullish reversal pattern. This was followed by another setup indicating a likely quick reversal. These strong technical signals were accompanied by negative sentiment in the form of high short interest and option open volume lopsidedness. Also a high vega indicated a highly sensitive premium
to price movements.
With such a compelling set up, I sold 10 contracts May $70 strike puts at $6.56. To take advantage of any possible move above $70, since the author indicates that big moves can occur as a result of such setup, I used part of the put premium to buy $70 calls, 10 contracts at $0.05. This is a very small cost to participate in any move above $70.
Even though this setup has high success rate, I decided to protect my downside as explained in the Chapter on risk control by buying10 contracts $60 strike May puts at $0.25.
With the stock near $80 on May 5, 2014 I closed the $70 May puts at $0.05 for a profit of $6.50/share. The $70 calls were worth $9.90 for a profit of $9.85/share and the $60 puts were at $0.05 for a loss of $0.20 /share. My net profit per share was $16.15 or $16150 for the 10 contracts I traded.
As many reviewers said, the content of this book is of such creativity and quality that dwarfs any superficial criticisms.In my case the results I obtained as seen in the example above speak for themselves
This point is acknowledged by the majority of reviews which in my opinion is compelling, since as
an active option trader , I am always looking for new concepts to add to my trading aresenal. Furthermore,
Why buy a book that rehashes what has already been presented in others which is the case with most option books.
After using this book for almost six months,after initially taking three months to paper trade using the concepts
presented , I can confidently say that the strategies in this book can deliver big profits if you take
the time to study them and actually put them into use
In my latest trade I used the concept of an earnings squeeze explained in the book. On August 24 with the stock pulling back due to a weak general market ,I purchased calls on 500 shares of AMZN $500 strike expiring November 19 at a cost of $17.50/share for a total cost of $8750. After earnings AMZN shot up to above $600 eventually moving to $650 a few days before expiration allowing me to
close the position for $150/share giving a profit of almost 800 percent.
Most recent customer reviews
The book is good, but don,t take a subscription on the website.
The website is not from Samir Elias, and is a scam.Read more
The book suffers from poor editing and poor layout.Read more
of incorporating the underlying security's behavior into the...Read more