Just finished Understanding Options 2E by Michael Sincere and really enjoyed this book. I bought the kindle version. The book covered a lot of concepts in a plain and simple english, great for beginners who are getting into options trading. For example a rookie mistake I was making was getting into too many options trades at the same time–it gets hard to track them, and remember all the reasons you entered, what your motivation was. Sincere also spends a lot of time going into volatility and how options traders need to use it for profit. The overview on covered calls is what made me initially buy it because he explained it very simply, and hit the concept home that you must be willing to part with your stock if you enter into a covered call. I had entered most of my trades with the “hope” that the stock would never exceed the strike price of the call so I would never have to sell. This is in actuality the best outcome. It had a really good overview of the greeks, and explained how the premium you sell or receive changes based on the underlying, the theta, and the delta (among many other things). A wonderful overview of intrinsic and extrinsic value, and the time value of a trade was extremely helpful. I also liked how how when describing hypothetical trades, he explained various scenarios — what could go right, and what could go wrong. One thing I’d like to to see more of is actual trade management after entering a trade, and how to adjust the positions. Also helpful would be more diagrams of the options on number lines showing profit and loss. I am a very visual person and follow along better when I see numbers visually. All in all, I would strongly recommend this book to new options traders and am considering Sincere’s other books as well. Check out the author’s website for more of his content: https://michaelsincere.com/
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