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The Intelligent Option Investor: Applying Value Investing to the World of Options
HOW TO USE YOUR HUMAN ADVANTAGE TO OUTPERFORM ALGORITHMS IN THE OPTIONS MARKETIf 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,
A thorough explanation of what options are and what their prices can tell you about the market's expectations for the future price of a stockA proven way to envision the risk/reward trade-off for stocks and options and a straightforward method to use the flexibility and directionality of options to tilt the risk/return balance in your favorA robust and intuitive framework for assessing the value of a companyStrategies to avoid the most common behavioral pitfallsTips for using the information on an option-pricing screenThorough coverage of important option investment strategies, including "covered calls," "protective puts," and "collars"Regardless of your experience level with options, this versatile guide makes you a better investor. Beginners get a turnkey solution to growing wealth in options, experienced investors gain savvy guidance for fine-tuning their practices, and professional investors learn how to effectively incorporate options into a portfolio.
Understanding valuation in this perceptive light lets you earn the consistent profi ts of The Intelligent Option Investor.
The Intelligent Option Investor is the hands-on guide to using a cuttingedge valuation framework in the fast-paced options market to boost growth, protect gains, and generate income.
It explains how to use your insightful human mind to recognize when mechanized options pricing undervalues a stock. Once you see an opportunity, you'll have all the tools you need to execute a fact-based decision about how and when to invest in the company.
Have your money make the most for you with the potent blend of timehonored value investing strategies and hot options vehicles in The Intelligent Option Investor.
PRAISE FOR THE INTELLIGENT OPTION
"The Intelligent Option Investor reflects Erik's keen understanding of how companies create value for their owners, which is essential to successful option investing.
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,
A thorough explanation of what options are and what their prices can tell you about the market's expectations for the future price of a stockA proven way to envision the risk/reward trade-off for stocks and options and a straightforward method to use the flexibility and directionality of options to tilt the risk/return balance in your favorA robust and intuitive framework for assessing the value of a companyStrategies to avoid the most common behavioral pitfallsTips for using the information on an option-pricing screenThorough coverage of important option investment strategies, including "covered calls," "protective puts," and "collars"Regardless of your experience level with options, this versatile guide makes you a better investor. Beginners get a turnkey solution to growing wealth in options, experienced investors gain savvy guidance for fine-tuning their practices, and professional investors learn how to effectively incorporate options into a portfolio.
Understanding valuation in this perceptive light lets you earn the consistent profi ts of The Intelligent Option Investor.
The Intelligent Option Investor is the hands-on guide to using a cuttingedge valuation framework in the fast-paced options market to boost growth, protect gains, and generate income.
It explains how to use your insightful human mind to recognize when mechanized options pricing undervalues a stock. Once you see an opportunity, you'll have all the tools you need to execute a fact-based decision about how and when to invest in the company.
Have your money make the most for you with the potent blend of timehonored value investing strategies and hot options vehicles in The Intelligent Option Investor.
PRAISE FOR THE INTELLIGENT OPTION
"The Intelligent Option Investor reflects Erik's keen understanding of how companies create value for their owners, which is essential to successful option investing.
- GenresFinance
337 pages, Kindle Edition
First published August 29, 2014
25 people are currently reading
171 people want to read
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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