#128 in Business & money books

Use arrows to jump to the previous/next product

# Reddit mentions of Options, Futures, and Other Derivatives (9th Edition)

Sentiment score: 10

Reddit mentions: 23

We found 23 Reddit mentions of Options, Futures, and Other Derivatives (9th Edition). Here are the top ones.

Look to sell options only in premium rich underlyings (IV rank > 50). Sell around 45 days until expiration. Close between 25% to 50% of max profit. Make sure to roll to defend positions (look to roll around 20 DTE). Sell the 30 delta options, and look to collect 1/3 the width of a spread. If you really want to be a big dick player, beta weight your portfolio to SPY, and keep it delta neutral.

Edit: I got a lot of PMs concerning more information to this approach. Both TastyTrade and OptionAlpha are great resources to learn, and spell out this approach further. Other, more in depth, sources to consider are Option Volatility and Pricing and Options, Futures, and Other Derivatives.

So basically... You had no experience whatsoever with the stock market, during a bull market you were able to outperform the S&P by 12% or so (Accounting for leverage) and now you think you're going to do well with options?

Let me tell you a story, in Business class in High School, we had this small stock market challenge, one group in particular, from my school, with no knowledge of finance whatsoever, reached 90% gains in just a month, they followed by dropping to -10% overall. Imagine if that was a 'real' account and they had reached 90% just to start fucking with options then tank to -200% and be indebted at 15 years old, well, that's what you're doing.

Anyway, I wish you the best of luck, at least read a book about options, VERY different from stocks, here's my recommendation "Options, Futures, and Other Derivatives" by John Hull

PS: That group was my group, I did all of the trades, which were ALL on 3x leveraged ETFs, pretty wild rollercoaster of emotions when I sank from +90% to -10%, from #1 to #36,205. The reward was minimal, but my dopamine receptors were already counting the win. The people who beat us, though, were +130%, if we'd gotten our last move right (It was about the elections), we would've gone to +300%.

> What makes you so accredited?

You didn't even graduate yet, what makes YOU so accredited?

> Have you ever taken an investments class in your life?

Nope! In my spare time, I did take some pretty good notes on this though.

> That shit isn't "simple stuff you can learn on your own",

Don't get your panties all up in a bunch just because you realize maybe the past 4 years haven't been the most productive. I could understand a regular ignoramus arguing about the history portion, but to say economics isn't relevant to investing tells me you're a solid C student. Please don't cold call me next summer.

> and thinks hes the shit

I mean, you're not wrong.

EDIT: Literally RIGHT on the /r/investing sidebar:

> Subreddits you may also enjoy

> /r/economics

LOLOLOLOLOLOLOL

EDIT 2: Hey /u/redcards, you're a fucking idiot. Same to you /u/hedgefundaspirations.

alwayswrong.disclaimer: Not a quant, never went to school for it nor worked in finance. I just like reading. This list is more than enough for the summer, but let me know if you want material focused on anything in particular. (Structured products, history, etc.)

That guide lists some amazing books but weirdly it doesnt mention the "options Bible" which will teach You everything You look for.

Options, Futures and other financial derivatives - John Hull

https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315

Plenty of pdfs online as well

this is the gold standard of books on derivatives.

https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315

Options college courses are part of getting an MBA in Finance.

In that case, start with the famous Hull book. It requires basic mathematical foundation (i.e. intro calculus) and a bit of knowledge on probability.

Don't worry about PDEs, Monte Carlo, or anything for now. Try to understand the Hull book, which is less mathematically rigorous.

If you're still interested after that, then you can look into more advanced probability theory (via measure theory), martingales, stochastic calculus, and so forth - which requires more advanced calculus and understanding of mathematics (probably by 3rd or 4th year math if you're studying in university)

no you're right. i was making a simplistic calculation on the interest.

i am familiar with options and black-scholes (i have the bible), but i just haven't fucked around with them much.

i need to read up on conv. debenture effective interest rate.

i'm assuming:

4.94/3.29 ~= 1.50, which annualized is about 22.5%, 7.1% of which is the semi-annual compounded coupon rate.

in all seriousness check these out

https://www.amazon.com/Technical-Analysis-Complete-Financial-Technicians/dp/0134137043/ref=pd_lpo_sbs_14_img_0?_encoding=UTF8&amp;psc=1&amp;refRID=D74P3MCZFQVYMZ4PBFT9

https://www.amazon.com/Encyclopedia-Technical-Market-Indicators-Second/dp/0070120579/ref=pd_sim_14_33?_encoding=UTF8&amp;pd_rd_i=0070120579&amp;pd_rd_r=WXSXAV2Q884X3RWTYDP1&amp;pd_rd_w=uoVZY&amp;pd_rd_wg=hgPmk&amp;psc=1&amp;refRID=WXSXAV2Q884X3RWTYDP1

https://www.amazon.com/Complete-Guide-Futures-Market-Fundamental/dp/111885375X/ref=sr_1_3?s=books&amp;ie=UTF8&amp;qid=1492128977&amp;sr=1-3&amp;keywords=jack+d+schwager

https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315/ref=dp_ob_image_bk

https://www.amazon.com/Option-Volatility-Pricing-Strategies-Professional/dp/0071818774/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1492129026&amp;sr=1-1&amp;keywords=sheldon+natenberg+option+volatility+and+pricing

https://www.amazon.com/Bible-Options-Strategies-Definitive-Practical/dp/0133964027/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1492129036&amp;sr=1-

Sure, I can try to help you out. I wouldn't call myself an expert, but I've studied them and spent time at an options market-making firm on Wall Street. My education in derivatives started at university, where I took an options and derivatives class. We used John C Hull's book, Options, Futures and Other Derivaties (link is to latest, 9th edition; you can use previous editions). Incidentally, Hull is a professor at Universary of Toronto.

While employed, we used Sheldon Natenberg's Option Volatility & Pricing: Advanced Trading Strategies and Techniques. The text is on the dry-academic side but is definitely an excellent resource.

You (and others) can also check out Khan Academy's excellent introductory videos here.

I'm not sure how I'll be able to mentor you, but I'm happy to give it shot. Let me know what I can do to help you out!

I passed on the 23rd, so what exam is next? IFM? Can I skip out of order and take the short-term then the long-term? I took an MFE class using Hull's Book in 2017, but would that work for IFM?

Now it's been a while since I read these, and I'm not complete sure if these are the kinds of books that you're looking for, but I found them quite good:

Options, Futures, and Other Derivatives by Hull: http://amzn.com/0133456315

Investments and Portfolio Management by Bodie, Kane & Marcus: http://amzn.com/0071289143

I hope this helps!

currently working through http://www.amazon.ca/gp/product/0133456315?keywords=options%20futures%20and%20other%20derivatives&amp;qid=1454268401&amp;ref_=sr_1_1&amp;sr=8-1

if you're interested in derivatives.

Hull

https://www.amazon.com/gp/aw/d/0133456315/ref=mp_s_a_1_1?ie=UTF8&amp;qid=1487271431&amp;sr=8-1&amp;pi=AC_SX236_SY340_FMwebp_QL65&amp;keywords=Hull+derivatives

I would start with this article by Mark Joshi. It's a little old (2008) but serves well as an introduction.

Now a quick disclaimer, I'm still quite junior and my work falls somewhere between the Desk/Dev roles. Based on your description you'd fall into more into the Model/Research roles. Also these are my opinions ymmv.

W.r.t general finance/economics, I dislike most finance/economics books. I would treat it more like learning a language listen to podcasts, read (good) blogs, non-academic books etc.

Here are some technical books I think are worth reading:

I like Joshi's books The Concepts and Practice of Mathematical Finance, C++ Design Patterns and Derivatives Pricing it assumes basic finace and c++.

Successful Algorithmic Trading. It's an introduction, focuses on methodology andcovers pretty much everything involved with actually designing, testing and implementing a strategy. As you don't know much finace jargon google will be your friend.

Options, Futures and Other Derivatives (Hull), or 'The bible book'. It's included in pretty much every quant finance book list, so I'll include it. My Derivatives elective (via the business school) used this. It's a solid intro, will get you conversational on the topics, and is aimed at MBAs. Read this if you have the time (~900 pages) and finished the two above books.

I am guessing either earnings passed and were meh enough to not move the price so the implied volatility fell yet the price remained stagnant, or its just time decay.

I hate to be this guy but read a book you illiterate SOB. Trading stuff you have little understanding of is a great way to get wiped out quick. Just give me your money or at least let me know what underlyings you are trading so I can be on the other side of the trade.

Might as well give you a suggestion to read: https://www.amazon.com/Options-Futures-Other-Derivatives-9th/dp/0133456315/ref=sr_1_1?ie=UTF8&amp;qid=1469304724&amp;sr=8-1&amp;keywords=Hull+options

Currently reading this for my derivatives class. Luckily it just became highly relevant to the job interview I have next month.

It sits on our desk for reference.

http://www.amazon.ca/Options-Futures-Other-Derivatives-Edition/dp/0133456315

(for the OP)

Here is the desktop version of your link

There's no set price, like I said on the post, depends on the maturity, strike price, etc. There's opensource software on github that does this type of calculations as well as websites. If you wish to dive deep into the valuation of derivatives the golden standard is John C. Hull

Depends on what you're interested in -

Most of my work is in derivatives so would recommend

Those are good starter books and far, far beyond what you'll get out of all three levels of the CFA. There are much more mathematically focused books out there as well.

If you want to get mathy -

This was my first serious finance book in undergrad and I still reference it today.

Fixed Income

I'm probably least strong in the equity space but most people recommend this book (I haven't read it)

Hull's book on derivatives.

Also, someone posted a similar topic 2 days ago. It's more related to the math/logic side of interviews, but still could be helpful.