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Options as a Strategic Investment

by Lawrence G. McMillan

Buy this book

The market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments. This updated and revised Fourth Edition of the bestselling options book of all time gives you the latest market-tested tools for improving the earnings potential of your portfolio while reducing downside risk - no matter how the market is performing.

Inside this expanded edition are scores of proven techniques and business-tested tactics for investing in many of the innovative new options products available. Here’s some of what you’ll find inside:

  • Buy and sell strategies for Long Term Equity Anticipation Securities (LEAPS)
  • A thorough analysis of neutral trading, how it works, and various ways it can improve your overall profit picture
  • Detailed guidance for investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and how to hedge them with common and regular options
  • An extensive overview of futures and futures options; and much more

Written especially for investors who have some familiarity with the option market, this comprehensive reference also shows you the concepts and applications of various option strategies - how they work, in which situations, and why ... techniques for using index options and futures to protect your portfolio and improve your return...and the implications of the tax laws for option writers, including allowable long-term gains and losses. In addition, detailed examples, exhibits and checklists show you the power of each strategy under carefully described market conditions.

“The options world has a lot to offer investors and traders alike, but it can be dauntingly hard to understand. Since its original publication, Options as a Strategic Investment has answered many a question; and each succeeding edition has answered many more. It is the options reference in our office.” - John Bollinger, CFA, CMT, President, Bollinger Capital Management

“Larry McMillan’s Fourth Edition of Options as a Strategic Investment is a must read. This latest version of his original classic presents his latest thinking on options. McMillan is truly the master of his field.” - John Murphy, President, Murphy Morris, Inc.

“Larry’s book is the bible of the options community. It has established the benchmark by which all other option books are compared - and none measure up.” - Alex Jacobson, Vice President, International Securities Exchange

Option strategies entail risk and are not appropriate for everyone. Before trading options, you should review Characteristics and Risks of Standardized Options. Some option strategies involve multiple positions simultaneously. These multi-leg strategies incur additional commissions and may invoke special treatment when preparing your taxes. If you are unsure about how a particular strategy may impact your financial picture, please consult a tax professional before trading.

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