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Understanding Options
ISBN: 0471085545     Date Published: 1995-02-06     Author(s): Robert Kolb
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400 Pages
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06/20/2013 01:32:16
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Editorial Review - Book Description:

The Business of Options shows how to conduct a professional options business. While it addresses the principles and practices of option trading and hedging in great detail, the book is the first to do so from a management perspective. O`Connell`s extensive experience in option trading, training, and consulting enables the book to offer a unique combination of sophistication, clarity and insight. Most option books that are written for professionals focus on advanced math or on specific trades. This book goes farther, incorporating broad strategic considerations and exploring the implications of likely human behavior. It often challenges conventional wisdom of "what works" in the options business. Its intuitive approach to complex issues involving options enables readers to stretch their mathematical capabilities. Its down-to-earth explanations about the business of options reflect both the optimism and skepticism of a seasoned practitioner in the option market who has, for over 20 years, advised and trained professional dealers and users of options around the world.

From the Inside Flap
Whether your firm is a dealer, a corporate hedger, or an investor, Marty O’Connell will teach you to approach your options activities as a business that must be managed as professionally as any other business. As a former options dealer, he addresses the principles and practices of successful options trading in detail. As a senior management consultant, he discusses trading, policy, risk management, and supervisory issues from an executive’s perspective.

O’Connell recognizes that not all option market participants are alike. While dealers, corporate hedgers, and investors share many common concerns, tools, temptations, and experiences, they necessarily approach the business differently. O’Connell explains the essential concepts and tools important to all of them, but also tailors his lessons to the unique applications and concerns of each group.

With remarkable clarity and confidence, O’Connell will overturn much of what you might assume about the business of options. For each group of market participants, he examines the distinct processes of position selection and position management. He raises the difficult questions and trade-offs that apply to each decision and does it with the feel of a trader and the priorities of a manager.

You will sharpen your analytical skills and learn how to:

  • manage and supervise the use of options in your firm
  • understand the statistical basis for successful option trading
  • decide your own balance between making money and managing risk
  • develop your intuition for the practical mathematics of option price dynamics
  • be aware of what pricing models can and cannot tell you

Marty O’Connell’s option courses are legendary. Now, for the first time, this seasoned veteran puts his lifetime of expertise into a book for all options professionals to read. His intuitive approach to addressing complex issues enables you to stretch your mathematical capabilities.

The Business of Options is an entertainingly written, levelheaded, step-by-step tutorial. Marty O’Connell’s down-to-earth style reflects both the optimism and skepticism of a practitioner who, for over 20 years, has actively known, understood, and helped professional dealers and users of options around the world.

Customer Review:
Total Reviews: (2)
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3 of 3 People found the following review helpful.

Options, December 21, 2008 ByMaxim Masiutin (Chisinau, Republic of Moldova) - See all my reviews This review is from: Understanding Options (Wiley Marketplace Book Series) (Hardcover) This book assumes that you have familiarity with the stock market but didn't trade options, so it carefully describes what option is and why it can be useful. It progresses from the simplest to the most complex strategies. The book is mostly theoretic, it doesn't have real-life examples. If you need them, get "McMillan on Options" by Lawrence G. McMillan. An important technique of selling puts as a way of buying the underlying security is also not covered in this book. Warren Buffett obtains most of his stock holdings through selling puts. He got most of his Coca-Cola Holdings this way, and, recently, Burlington Northern Santa Fe. If you are interested in this technique, read chapter 19 of "Options as a Strategic Investment" by Lawrence G. McMillan. A good characteristic of "Understanding options" is that each chapter ends with a set of review questions and answers that will assist you in absorbing and implementing the material covered. It can also be useful if you are...
0 of 1 People found the following review helpful.

Very helpful, August 22, 2007 ByA. Lakhotia (NY, USA) - See all my reviews This review is from: Understanding Options (Wiley Marketplace Book Series) (Hardcover) A very helpful book for understanding options. I would say a must have for any person dealing with options.
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