Book Review: Understanding Options
25. May, 2009 
4 Comments
Understanding Options, written by Michael Sincere, is a really good book to learn the basic concepts and techniques of option trading. If you know anything about options, you know that options can be very technical and full of complexity. This books tries its best to avoid all that and attempts to explain options trading in the simplest manner possible.
Even though I was a total beginner to options, this book allowed me to learn options one step at a time. Michael starts out talking about the very basics of options. He then starts out teaching how to write covered calls, buy call options, and buy put options. As you progress through the book, he starts to include more advanced trading techniques such as selling puts, straddles and spreads.
He also talks about the risks associated with each trading strategies, so the book helps readers understand what strategy works best for them. This is why he succeeds at writing introductory books because he understands what it takes to make the book beginner friendly.
Author: Michael Sincere
Michael sincere wrote several investing books including Understanding Stocks and 101 Investment Lessons from the Wizards of Wall Street. He made a name not because he is an excellent investor and made a huge fortune trading. He instead became popular through his career as a financial journalist, writing many financial articles and columns. His interviewing skill set and experiences also give him the edge in this industry. Even though he necessary is not a full-time trader, he certainly has interviewed many of them.
Pros: The book is very basic and is extremely easy to understand for beginners. He also starts to dive into the more advanced trading strategy if you choose to explore further. The book is also very affordable.
Cons: The book is very basic, so it won’t be too value-adding for more experienced traders looking to take the options trading to the next level. I would stick to other books out there that are far more advanced and complex than this one.
very great book,,, thanks
Glad you liked it. Good luck with options trading. If you ever get a chance, drop a note to Michael. He's a very good guy. I'm sure he'll respond to ya! Be sure to check out his interview that I did too.
Glad you liked it. Good luck with options trading. If you ever get a chance, drop a note to Michael. He's a very good guy. I'm sure he'll respond to ya! Be sure to check out his interview that I did too.