Trading Index Options [With Disk]

by James B. Bittman

Book Overview

Designed and written for active traders, this book provides the practical information that traders need on a daily basis. The markets covered account for more than half of all options traded. A... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0786312300
• ISBN13: 9780786312306
• Release Date: May 1998
• Publisher: McGraw-Hill
• Length: 312 Pages
• Weight: 1.45 lbs.
• Dimensions: 1.3" x 6.3" x 9.3"

Customer Reviews

updated software is available from the author...

The book is very good from a professional options trader and teacher. A lot of the comments from people who recently bought this old (but good) book for the software, were not diligent enough to think about contacting the author. I contacted the author and he mailed me an updated version of the software that comes with the book. He was very kind and cordial.

5 Stars is not enough

From the beginning pages, the explanations are flowing and account for all levels of competency in options. When you finish the very readable book, you will have a solid understanding of index options. The graphs are excellent while the mathematical concepts are carefully explained. I have traded stock options successfully for the past ten years and I now have enough confidence in my knowledge of index options to not panic when hitting the enter button.

A Clearly Written Look At Index Options

A few years back, Bittman wrote a well-received fundamental look at equity options entitled Options for the Stock Investor. This time around the author delves into the world of index options. Trading Index Options covers a lot of material and shines at helping the trader build a foundation to expand upon. This strength is clearly evident early on when Bittman defines most common option strategies. From the simple to the complex, each page has a graph illustrating profit and loss characteristics at expiration along with some insightful comments on each strategy. To the author's credit he mentions transaction costs as a major factor hindering more complicated strategies.In ensuing chapters Bittman covers basic buys and sells in detail, along with basic spreads, straddles, strangles, and ratio spreads. The book is light on math and seeks to make these strategies and the reasons for their employ easily understandable.Included with Trading Index Options is a software program entitled Op-Eval 3. The program can be used to calculate implied volatilities, greeks, compare options, and graph positions. Perhaps of greatest utility, however, is the software's ability to allow you to look at how changes in underlying prices and time decay will affect your position.While advanced option players may find they've already compiled much of the information Bittman presents, it remains a solid sourcebook. Beginners and intermediate players will be hard pressed to find a clearer or more concise reference tool. Easily worth the money you'll pay online and a nice addition to anyone's option library.

Software is not too bad, and the book is clearly written.

The software is useful, and the the book is easy to read. Worth buying, if your into options.

An understanding of options delivered accurately and clearly

This book demystifies the factors that make options such an attractive and powerful trading and investment tool. Bittman's clarity leaves no misunderstanding or ambiguity about how things work in plain language and steers you clear of common beginners' mistakes. The included software provides a hands-on interactive learning experience to reinforce ideas introduced in the book and is a useful tool to evaluate potential trades. The sections that lay out trading plans and strategies present a straightforward and disciplined approach to identifying and evaluating attractive trading opportunities. Although geared to options, these are helpful to consider no matter what markets or instruments one is trading. Read Bittman first to get a solid foundation, then move on to the MacMillan books for the post-grad experience.An excellent value for the price!