Book Review - The Option Trader Handbook

Written on June 18, 2008 by OptionsRopeaDope

Another book passed around often among traders…

This book is another one near the top of most trader’s lists. It is not for the beginner, as it places a large focus on synthetics throughout the chapters. A big reason is that almost all of the trades are laid over long stock positions, which makes for interesting graphs, but are a degree away from the “income options game” of taday, where most people like me try to create position with options only. Seeing straddles and ratio spreads meshed with a long stock position does make for interesting visualization though.

Not to say this book isn’t very valuable - the authors ability to explain things is very good, and the exercise of understaning all of the angles presented, and there are many, many of them, will be valuable to anyone seeking a greater understanding of option strategies. I just find myself referring to Cottle and Natenberg’s book smuch more often for hard wisdom on what to do in different market situations (which for me, is focused on different volatility environments.)

Another Reason the book gets great reviews - one of the authors is a frequent poster on the Elite Trader forums and is always ready to answer questions. That alone puts this book in a class by itself.

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