Inside look to market makers option trading
This
book, gives relatively plentiful essential information considering that
it is not even near to size for any "options bible". Book can be
recommended in the first hand to anyone intrested of how professional
market makers may trade options. For example some forms of arbitage
trade is covered. Some of these option trading tactics presented are
only for market makers, hedge traders or people with much capital and
willingness to bear greater risks than not even reasonable option
sellers can usually take.
Basics of option bying and selling and many option strategies are also
covered but if reading only this book of option trading, non
institutional option traders may easily be tempted to believe that they
are soon would be master option traders. True, John Narajan is a master
-- but he has also great trading instincts and has had also a good luck
for not have been washed away with his high risk trading tactics as
some of them based on counting the long bull market to continue.
Even if Narajan recommends protecting naked options positions always
with some bought "disaster options", those who like to more understand
all the full risks of high risk -- high potential profits option
trading should read also some other books of options as Sheldon
Natenbergs option Pricing and volatility.
