Options as a Strategic Investment

Options as a Strategic Investment by Lawrence G. McMillan is a large, comprehensive reference on options that many traders keep on their desk, and it is often described as a standard text on the subject. It covers the basics of calls and puts, then moves step by step into strategies such as covered writing, spreads, straddles and protective hedging. Each strategy is explained with its purpose, how its profit and loss change with the price of the stock, and the risks that come with it. The book also looks at topics such as volatility, how to manage and adjust a position, and options on indexes and futures. Because the material is organized by strategy, it works both as a course to read through and as a book to look things up in. It suits traders who already know the basic terms and want a broad, practical reference, and it fits closely with our guide on risk management.