Larry McMillan is a Hercules icon of the options world. Few have the opportunity to Titans, thorough and comprehensive knowledge bases to devote 630 pages +, a publication. It shall not, by what at first appears to be a giant Chronicle overwhelmed.
McMillan undertakes extensive efforts to clarify the proper use of the abused terms of trade. He corrects inaccurate by the application of the mechanics of mathematics, and materials that will help you to visualize this with graphically demanding worked examples. Each chapterhas its own summary, emphasizes specific techniques to refine your own trading methods.
There is sufficient reader reviews at Amazon and Google Book Search, which will help determine whether you get the book. Have for those who have just started or are about to read the book, I put the key concepts in the large and important chapter helps you get through them quickly summarized.
– Discount Futures
The number on the right of the title of the chapter is the number of pages contained in this chapter. It isnot the page number. The percentages represent how much of each chapter is 630 pages in total, with the exception of plants.
1. Option history, definitions and concepts. 44, 6.98%.
2. An overview of the Option Strategies. 60, 9.52%.
3. The versatile option. 82, 13.02%.
4. The predictive power of options. 164, 26.03%.
5. Trading Systems and Strategies. 90, 14.29%.
6. Trading volatility and other theoretical approaches. 128, 20.32%.
7. Other important aspects. 48,7.62%.
Concentrate on Chapters 4, 5 p.m. to 6 p.m., which represents approximately 61% of the book. These chapters are relevant for practical purposes of trade. Here are the main focal points for these chapters, which I summarized from the perspective of the retail options trader.
– Discount Futures
4 The predictive power of options. Within this chapter focus on these sections: the use of stock option volume as an indicator, Implied Volatility Can Predict a change in the trend and the Put-Call Ratio.
Here you aretaught to spot trading opportunities, where the daily total option volume is more than the average option to double their volume. For highly liquid index products, a higher ratio is required. It must validate the filter to the use of the volume of speculation. These filters, however, the effects of arbitrage, total volume concentrates on strike in too few who are not identifiable as block trades, spread trades concentrated in only two series of strikes and the concentration of the daily trading volume ITM strikesWhich does not exceed the percentage leverage the ATM / OTM strikes.