Fundamentals of the Options Market By: Michael Williams & Amy HoffmanIf you are looking for a textbook learning experience on options this is a great book for you. It covers the topics of how options work, how the greeks work, how options are traded, what markets options are traded in, how to use listed options, how to use index options and LEAPS. The text book style of the book includes quizzes, charts, graphs and checklists in addition to the text to facilitate a step by step approach to learning the material. This step by step approach goes down to the level of how to open an options account, how to create a trading strategy and ultimately how to place your first trade on your new account.
The book is broken up into two sections. The first covers the bassicas of what an option is and how it is traded, this section can probably be skipped by most confident financial types. The second sections discusses strategy. This section includes the meat of the executable content and covers everything from a fairly robust discussion of synthetics that will appeal even seasoned investors to how the actions and sentiments of market makers affect the market.
The book speaks to both the strategies of how options can be traded by risk hungry investors to leverage their returns and risk averse investors to limit their losses. This book is not a theoretical piece and as such it presents executable strategies. The book will not present you with any earth shattering ideas but you will be exposed to a very useful and very relevant set of trading principals that you can start working with very quickly.
Categories:
Derivatives,
Equities,
FX,
Intermediate,
Options