Options as a Strategic Investment is the most comprehensive guide to options trading ever written. Lawrence McMillan, recognized as one of the foremost options experts, provides over 1,000 pages covering every aspect of options from basic concepts to advanced strategies.
The book begins with fundamentals - what options are, how they're priced, and the Greeks that measure options behavior. McMillan then systematically covers strategies from simple (covered calls, protective puts) to complex (butterflies, condors, calendar spreads). Each strategy includes analysis of profit/loss profiles, breakeven points, and optimal market conditions.
What distinguishes this book is its mathematical rigor combined with practical application. McMillan explains when to use each strategy, position sizing considerations, and adjustment techniques when trades move against you. The sections on volatility analysis and option pricing models provide the theoretical foundation that serious options traders need.
For traders looking to add options to their toolkit, this book serves as both textbook and reference. The comprehensive index makes it easy to look up specific strategies or concepts. While dense, it provides everything needed to trade options professionally.
Key takeaways from this book
- 1. Master all major options strategies from basic to advanced
- 2. Understand the Greeks and options pricing models
- 3. Learn position sizing and risk management for options
- 4. Know when to use each strategy based on market conditions
- 5. Develop adjustment techniques for managing losing trades