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 | | Options on Futures: New Trading Strategies by John F. Summa, Jonathan W. Lubow ISBN-10: 9780471436423 ISBN-10: 0-471-43642-9 ISBN-13: 9780471436423 ISBN-13: 978-0-471-43642-3 Hardcover 2001-11-30 Wiley Find Lowest Price |
Editorials | ||
Product Description Increased marketplace volatility and the expanding size of capital markets have led to an explosion of interest in options on futures. What makes these instruments so attractive is that they allow traders to profit from movements in the markets using little up-front capital and plenty of leverage. At the same time, they provide an excellent hedge against the risks associated with capital market investments. This book demystifies these notoriously difficult-to-understand instruments and provides state-of-the-art strategies and tools for making the most of options on futures. John F. Summa (New Haven, CT) is a CTA and cofounder of OptionsNerd.com, an online service providing market commentary, trading advisories, and assistance with trading system development. Jonathan Lubow (Randolph, NJ) is cofounder and Vice President of Trader's Edge, a futures and options brokerage. | ||
Reviews | ||
Disappointing for the price Why do hardback books cost so much? And what makes this one sell for $65 and others that are better sell for $35? Who comes up with the pricing on these things? John Summa makes a strong case for selling credit spreads in the futures market in this volume. It is a good read for beginners, but really you can find the same material on the internet for free just by doing a few key word searches. The way he presents the material is authoritative and would have one believing that his conclusions are gospel. In reality nothing could be further from the truth. You can lose money doing credit spreads, and yes, have bad streaks where 4 or 5 in a row go against you. I know because I am a fan of credit spreads and do them in the stock market quite a bit. Typically you are risking more than 2-1, that is, risking more than twice as much as you can make so when you hit a bad streak it can set you way back. Credit spreads are just another tool; you still need to be decent at choosing your positions. I belong to Summa's mailing list as well. His mantra is selling options, selling options, selling options. A quote from one of his newsletters: "The amount of wealth being transferred to option sellers from option buyers is staggering." It's irresponsible statements like that which keep me out of his fan club. Ask Nicolas Talib ("Fooled by Randomness") what HE thinks of selling premium as a core strategy. Selling option premium is one of those strategies that makes a little money most of the time and then one day a catastrophy hits and ruins you. I have two major issues with the book, which I concede is a well-written work that I did enjoy reading. The first is that the examples given are unrealistic. The premiums collected on the SPX credit spread examples in the first half of the book that are way out of the money like that just don't exist. The second is the risk-management suggestions on some of the scenarios. In particular, a ratio spread (a complicated spread to begin with) using a futures contract as a hedge that goes against us - we manage this risk by continuing to add legs to this position until what we have left is a mess of spaghetti costing maximum commissions where the same risk/reward ratio in the end could have been attained by simply buying an option. I still recommend reading it to those learning about option spread strategies who like to learn by having a book on their nightstand. But buy it used. Hey, how about my copy? For me, books are either a 1 star, 3 star, or 5 star. The 5-stars are the classics that are too good to ever remove from your bookshelf, like many of the books I recommend at winningfinancialstrategies.com. The 3-stars get sold on ebay when the bookshelf overflows. The 1-stars go to Salvation Army. | ||
Bravo I recently carefully studied your book entitled "Options on Futures" and found it just fascinating. Of course, I have long been a seller of SPX cash market options and your book broadened my understanding of what can be done in the futures and options on futures markets. Your book and workbook are very clear, understandable, and applicable. | ||
Another book about selling options... This book is really no different from the many other books about options and why it is better to be a seller of option premium rather than a buyer. ... The only real difference from most other options books is that this book focuses on futures options instead of stock and index options. The only chapter that addresses any slightly new material is the chapter about the margin requirements of trading futures options. And even that chapter is lacking. In order to fully be able to employ the material abouts margins, you have to buy a ...computer program. I can't really recommend this book to anyone with even slight experience trading options. For beginners only! | ||
Options on Futures This is a very simple, canned presentation. The book is primarily boilerplate that may be read free on any exchange website. There may be value for the novice here, but anyone with experience will put the book down 15 minutes after picking it up. | ||
One of the best Options books out there.... Very good treaty on trading options as a net seller, sellers being the options traders in the market who make the real money. Well written, clear examples, margin reqs covered thoroughly... | ||