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The Intelligent Option Investor: Applying Value Investing to the World of Options
If you're a value investor who wants to get your money into the lucrative options market, forget about day trading, chart patterns, and market timing. This systematic book lays out a path to long-term wealth by taking positions on companies with real intrinsic value--the kind Ben Graham and Warren Buffett would invest in. Leave the complex algorithms and "Greeks" for the floor traders. Erik Kobayashi-Solomon, former investment banker, hedge fund risk manager, and valuation consultant to the World Bank, gives you the knowledge and sophistication to understand what options pricing reveals about the market's estimation of future stock prices. He then demonstrates how to find tremendous opportunity for low-risk, high-profit investments in the difference between the market's mechanized price ranges and ones made by you, a thoughtful human being armed with the insight this book offers. Everything you need to make options a powerful contributor to your portfolio is inside,
- GenresFinance
336 pages, Hardcover
First published August 29, 2014
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Displaying 1 - 2 of 2 reviews
August 6, 2017
I enjoyed reading this valuable book , I have recommended it to my friends .It is worth reading.
February 3, 2019
As someone with an interest in value investing, and no background in using options, I found this book provides a useful introduction to thinking about options from a value-investment perspective.
The method described in this book requires worst case -- best case fair valuations of stocks to use as an input, to identify situations where the market is pricing stocks and options irrationally. It will not be possible to apply this approach without a way to estimate or obtain these valuations. To get the most out of this book I suspect prior reading about value investment is necessary.
The book contains a number of heuristics or rules of thumb for thinking about options without crunching any numbers. I suspect in some cases these rules of thumb may be poor approximations and lead to poor results. On the other hand, the author's main point is to only use options in situations where one's independent worst case -- best case fair valuation range of a stock is very different from the valuation range implied by current stock and options prices. In these cases the use of rough approximations may not have a material impact upon results.
It would be interesting to read a review of this book from someone with a deep & practical knowledge of valuing and pricing options.
The method described in this book requires worst case -- best case fair valuations of stocks to use as an input, to identify situations where the market is pricing stocks and options irrationally. It will not be possible to apply this approach without a way to estimate or obtain these valuations. To get the most out of this book I suspect prior reading about value investment is necessary.
The book contains a number of heuristics or rules of thumb for thinking about options without crunching any numbers. I suspect in some cases these rules of thumb may be poor approximations and lead to poor results. On the other hand, the author's main point is to only use options in situations where one's independent worst case -- best case fair valuation range of a stock is very different from the valuation range implied by current stock and options prices. In these cases the use of rough approximations may not have a material impact upon results.
It would be interesting to read a review of this book from someone with a deep & practical knowledge of valuing and pricing options.
Displaying 1 - 2 of 2 reviews