Shorts, puts, calls

[Cal]

Can anyone recommend a book or a site where I can better educate myself on short selling, puts and calls? I understand them at the most basic level but would like to learn a little more about them.

(And Unclemick - I sincerely hope this interest isn't related to rising hormone levels - wouldn't be good for a girl to have high testosterone .  )

 

[JPatrick]

Haven't bought an options book in a few years, but I'd say the most complete advanced book I own is by George Fontanills titled "Trade Options Online"
This book covers a little about short selling.  The easy part of shorting is the mechanics.  The tough part is (like anything else in the market) is stock selection and execution.


BTW, if you search the authors name on B&N you'll find he has a bunch of other option books as well. This guy is pretty much the options kingfish.
Good Luck

 

[Olav23]

When you say short selling, do you mean in regards to specifically Options, or stocks as well?

If you are just talking options, I go right to the source, the CBOE:

http://www.cboe.com/LearnCenter/Tutorials.aspx

 

[BUM]

Hi Cal,

"Options as a Strategic Investment" by Lawrence McMillan is the bible. Discontinue use if facial hair develops.


BUM

 

[Cal]

Thanks all for the suggestions!

 

[dandan14]

Thanks all for the suggestions!

I think "Applied Derivatives" is a good book. You can pick up a used copy for $27 on Amazon....which I realize is a bit pricy, but it's good stuff.
Link:
http://www.amazon.com/exec/obidos/t...102-2703743-2776932?v=glance&s=books&n=507846

 

[nfs]

McMillan is the bible but is in fact absolutely useless. Any book with a title like "Trade Options Online" is likely to be even worse. Here's the general rule: Look in the book's index for the terms delta, gamma, theta, and vega. If they're not there or are mentioned only in passing - like most editions of McMillan - the book is not worth the match it would take to set it ablaze.

Get a decent book and understand what it says. I have never seen Cal's Applied Derivatives recommendation but it looks plausible. I recommend Kolb's Futures, Options, and Swaps myself. Almost anything by Hull or Hull & White is also worthwhile, but it will be both technical and pricey.

 

[dandan14]

Here's the general rule: Look in the book's index for the terms delta, gamma, theta, and vega.

I totally agree. Honestly, after studying options portfolios for a while, trying to build delta neutral/ gamma neutral portfolios and the like, I decided that there was a good reason why the pros make money at this and the amatuers (especially those who think they are pros) get taken to the cleaners. The reason is that options, futures, swaps, etc, are very sophisticated instruments, that can easily kill you if you get to confident in your own abilities.

 

[brewer12345]

I recommend Kolb's Futures, Options, and Swaps myself. 

Heh, if anyone is interested, I have a copy for sake in excellent shape for a measly 10 bucks plus shipping at http://s1.amazon.com/exec/varzea/ts/exchange-glance/Y04Y6662279Y2504565/104-8935409-4146353

Gotta get rid of that stack of surplus books. The book is pretty comprehensive, but be aware that it is a textbook on a quantitative subject, so it is more than a bit dry.