5 comments about FORTY YEARS A SPECULATOR.

1. I read this book with great interest because for the past four years I have been using similar investment strategy. From my experience, I can confidently say that the strategy in this book really works. My own research convinces me it will continue to work for quite a long time to come. I would recommend it to anyone who wants to protect or enhance their wealth. In fact I would suggest reading it at least three times.



2. For grammar, punctuation, and sentence structure, I would give "Forty Years" a 3-star review. It became more clear as I continued reading that the manuscript skipped a stage or two in the editing process.
   
   But who cares about that? Really, nobody reads an investing book and worries about grammar, punctuation, and sentence structure. We're there for the meaty details of how to make the most with our hard-earned money, and "Forty Years" is chocked full of meat. I've never been one to accept the conventional manner of investing - buy and hold the blue chips - so I'm taking this as an opportunity to stretch my muscles a bit in the world of gambling, er, investing.
   
   Scared money doesn't make money, and, finally, with Carach's advisement, I have a channel to vent my desire to make money before I'm 70. Thanks Fred!



3. Although humor may be sprinkled throughout this whole book, it should be taken very seriously. He gives a very well thought out, and examined approach to very high risk investment. He gives not only relevant stock examples, but also relevant historical examples. My only recommendation is to read one or two general trading books, before reading this one, otherwise you won't be able to fully appreciate his alternative view of investing.



4. People stand up and listen. This is a book that can be a difference maker for you. Buy the book. Read it. Apply it! This gives the every day guy a chance. Don't be fooled by the title. This is an excellent well rounded and well thought out investment program that nobody it talking about...nobody! Don't wait.
   Joe - Woodstock, VA



5. In his book Forty Years A Speculator, Fred Carach does an excellent job of convincing the reader that the big blue-chip companies are NOT the way to invest; rather, other stocks are worthy of your dollars because of their income potential, or the fact that they are good penny stocks or inexpensive enough that you can double your money, perhaps many times over. Fred's humorous tone is very appropriate, as he convincingly conveys in a conversational tone that it is laughable how some people ignore inexpensive yet high-quality stocks as if they are not worthy of investment. Fred lays his cards on the table, listing many stocks that he deems investment-worthy and his rationale for investing in them. Many of these stocks are NOT the ordinary stocks that the investment pundits say you should invest in. Fred will convince you that you can intelligently gamble your way to riches by being a contrarian investor. This book is a must-read for every investor who wants to be an intelligent gambler and for those who want a successful alternative investment approach. Fred should be applauded for sharing his excellent work and advice with his time-tested and novel investing approach.

5 comments about The Option of Urbanism: Investing in a New American Dream.

1. People outside the planning profession would find this book helpful in understanding new directions that are possible. Developers who are looking for a competitive advantage tool would do well to avail themselves to Leinberger's perspective on urbanism. It is an easy read, not technical, requires no specific background other than a healthy curiosity and drive to do better. City commissioners would also benefit from purusing these pages.
   
   The author is a major mover and shaker in Albuquerque and a key proponent of their downtown revival. Leinberger writes from first-hand experience. I recommend reading books like this because it is a chance to get inside the head of a visionary. A person could easily read one book like this each week; how else could you immerse yourself in 52 change agents per year?? When a consultant of Leinberger's stature shares 5 hours of his insights for less than $20 it is a pretty good value.



2. Written from a perspective that most urban critiques fail to provide, this book grounds the reader in the real estate, demographic and policy realities that have shaped the American built environment into what we see today. Leinberger knows this stuff cold, both as a developer and through his more recent positions in Brookings and academia. He writes in an approachable style and provides the most thorough discussion to date of the entrenched system of subsidies and practices fueling types of residential and commercial construction that is increasingly at odds with the "true" market. Late in the book, I think he makes a rare--but very appropriate--connection between the implication of the continuation of these policies and our future energy needs. For those of us who like a good, constructive reality check now and again in the midst of all the usual suburban finger-wagging, it's a must-read book this year.



3. I met Chris Leinberger 13 years ago when we began in earnest to address how we were growing in Atlanta. He was knowledgeable, articulate and helpful then, and he continues to be so today. I have borrowed extensively from this new book of his in helping people to understand how growth and development issues relate to each other, why we must pursue walkable urban development, and what the multiple benefits are that derive from this approach to development and redevelopment. This book is well written, is appropriate for lay persons and "wonks" and can be read in just a few sittings. Thank you, Chris, for a terrific resource at such an important time in our nation's development history.



4. Great book. I lived the phases of walkable neighborhoods to driving-suburban. Now we have return to sustainable, walking neighborhoods especially with the gas cost.
   
   As I grew up, I felt supply and demand dictated growth. This book explained government and economic factors that influence development.
   
   good read



5. In _The Option of Urbanism_, Christopher Leinberger documents the history of both urban ("walkable urbanism") and suburban ("drivable sub-urbanism") settings. Before WW II, most people lived in cities and towns where most of their needs (shopping, etc.) could be met via a short walk, or perhaps, with public transportation.
   
   After the war, the big swing was to the suburbs, due to several factors. Government and financial-institution policies tended to favor the suburbs, freeways, single-family housing and shopping malls....and discouraged any meaningful pro-urban development--at least until very recently. Nowadays there is a considerable demand for more dense housing, with destinations within walking distance.
   
   Although Leinberger is very much in favor of urbanism, he does talk about some problems with it (affordability/gentrification is a big issue with some of the newer urban developments). Neither does he call for the suburbs to cease to exist, although he warns that some suburban developments may be hurt by the shift to the cities, rising gas prices, etc. (This book was written right before the current mortgage and gas price crises, and we're starting to see their effects on certain suburban areas as I write this)

No comments about Trading Futures For Dummies (For Dummies (Business & Personal Finance)).

3 comments about Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors.

1. I have read a lot of books on options and most of them have one thing in common - they all just describe the various options strategies but do not provide any information on how to use the strategies effectively to make money. This book is no different.
   
   The book delves into how a butterfly and a condor are structured. If you know that a butterfly is structured by a short straddle and protected by a long strangle further out of money, you can skip pages and pages of explanation on the structure. If you already know how to calculate the profit or loss for various prices of the underlying at expiration, you can again skip many pages. Same is true regarding the option greeks. Also, pages and pages of theory does not add much value if you already know about the construction of a condor, which is nothing but a short strangle protected by a long strangle that is further out of money.
   
   What is sorely lacking from the book is any advice on how to practically use these strategies for profitable trading. The author mentions that you will trade these strategies when the market is range bound. The author does not give any practical suggestion on selecting the long strikes or wings of the butterfly other than mentioning in the passing that one may use probabilities, but does not go into details of how the probabilities are derived. If you are a butterfly trader you probably already know about standard deviations and probabilities and the importance of IV in calculating the expected movement. Also, once you are in a trade, how do you manage it when it goes against you? The author does not discuss that in any detail.
   
   The chapter on 'Strategy Applications' has a lot of diagrams depicting when to leg into and out of the butterfly/condor depending on the market; whether it has broken out of a range and whether IV is falling or rising etc., This is one chapter that can be of some practical use.
   
   All in all, if you are a beginner you might find some interesting reading on the butterfly and condor strategies. But all that and a lot more strategies are covered in depth in McMillan's 'Options as a strategic investment' book.



2. I would have liked to see more information on guidelines to determine the best range (width) to buy (sell). Specifics on Condor corrections like when is the best time, how to determine how much correction, and alternatives. I would have liked to see ideas on "winging into condors" or adding one side at a time.



3. After having learned much from Saliba's first book on options, I was disappointed that there wasn't much new here for experienced options traders. Those contemplating these types of directionless strategies should not forget that they will likely experience long strings of small winners puncuated by infrequent huge losses that can wipe them out.

5 comments about New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing.

1. This book is an excellent primer on one of the safest form of the options game, at least from the perspective of the brokerage industry. So, if you're bored with watching your portfolio creep around at a few percent a day, you can write (sell) a call option for $100 on a $5000 investment (for example) and have a pretty good chance of keeping the 2% at the end of the month. Lehman and McMillan do an excellent job of providing return formulae and web resources for further research. But the question remains: do you really want to get into this? (I admit it's addictive). If you do you'll turn into your own stock churner. The brokerage fees aren't too bad if you use one of the discounters, but get ready to do some major capital gains calculations (profits from unexercised options are all short-term capital gains). Here's a hint: this is NOT the way Warren Buffet got rich.



2. As I view it, there are two key questions relating to any complex investment strategy:
   
   1) Why? Why should I pursue this strategy versus my current (probably simpler) strategy?
   2) How? If the proposed strategy is indeed worthwhile, how can/should I implement it?
   
   This book does a reasonably good job of answering the second question, with details on how options work, and a discussion of things like getting approval to trade them, tax issues and the like. I'd read some similar material elsewhere (including CBOE's own site), but this book pulls together a lot of disparate information, and filled in some holes in my own somewhat meager understanding of the mechanics of trading options.
   
   However, showing HOW to trade options is not very important, IMO, if one cannot show WHY one should trade them in the first place.
   
   The book jacket is not very encouraging in this light - mentioning that "Returns of 10 to 15 percent per year in conservative accounts - and as much as 20, 40, or 60 percent per year in more aggressive accounts - are possible". Of course, like most investors, I would be thrilled to get 60 percent annual returns, but experience and reading have taught me that those advocating investment strategies and making claims of that magnitude are to be taken with a BIIIIIIG grain of salt.
   
   Within the book itself, sky-high claims like the above are (fortunately) not emphasized. But basically, three rationales are presented for covered call writing:
   
   1) Ability to obtain superior returns through knowledge of the future direction of a particular stock (i.e. if you think/know Microsoft will go up/down in the next month, then do XYZ...)
   
   2) Ability to use more leverage (there is a long discussion of how different scenarios are treated from a margin perspective, with an emphasis on controlling larger blocks of stock/options for a given starting investment)
   
   3) Reduction of risk, possibly without significant reduction of return
   
   Personally, I think that markets are reasonably efficient, and that I lack and real ability to outpredict the market with regards to returns on specific stocks (once I normalize for various risk characteristics). So rationale 1 above holds no appeal to me.
   
   I am also not interested in increasing the leverage of my portfolio, and further, if I was, I think there are probably simpler/cheaper/more efficient means of doing so other than writing covered calls.
   
   That leaves rationale 3, which was what sparked my interest in reading this book. The author briefly discusses the BXM - an index created by the CBOE in conjunction with some research showing that a buy-write strategy (owning a broad index and mechanically writing calls against it) produces about the same return as owning the index itself, but does so with significantly less risk/volatility. But the authors' discussion of this research is short - about two and a half pages, and gives minimal or no mention of some important issues:
   
   1) The BXM strategy involves writing calls every month. This will create a variety of costs - brokerage fees, spread/transaction costs, taxes, and time. While these factors may affect any mechanical strategy (including indexing itself), they are likely to be much more severe for the BXM strategy.
   
   2) The BXM strategy is a backtested strategy. It's relatively easy to find strategies that would have outperformed the market in the past, given what we know now (Consider the MICROSO strategy - buy at IPO any stock that begins with the letters MICROSO), but one should approach such strategies with caution. It's much harder to identify and implement strategies that will work for the FUTURE, and that are in fact proven to do so over the subsequent decade or two.
   
   3) The market itself may have changed. Writing options is relatively more attractive if call premiums are high. It appears, based on evidence presented in this book and elsewhere that I've seen, that call premiums have generally been higher than they *should* have been (per Black-Scholes). This, in turn, has made call-writing more profitable than it otherwise might have been. But markets change over time, and it's quite possible that call premiums might trend downward (or may have already done so), towards, or conceivably even below, 'true value'. I don't know if this is the case, but it's something for a potential investor to be concerned about, and isn't well addressed in the book.
   
   The authors' also conduct their own study looking at writing options on a basket of individual stocks. While the results are interesting, the study is flawed - they emphasize tech stocks, and in their limited pool of 20 companies studied, one they've chosen is Microsoft, starting in 1988! At that time, I think, Microsoft was a relatively small company (it had only gone public in 1986), and it seems unlikely that someone selecting a portfolio of 20 (hopefully representative) companies to own and write options on would have chosen Microsoft. For what it's worth, the study finds that a covered call strategy on Microsoft underperforms buy and hold in absolute returns, which should hardly be surprising (writing covered calls means giving up some upside, and Microsoft had a LOT of upside during the time period covered), though there are other stocks in the study for which the strategy had better results. But the basic problem is that the stocks selected seem unlikely to have been representative of what a conservative to moderate investor would have chosen at the beginning of the study, and thus it's not really possible to draw broad conclusions.
   
   ====
   
   OK, moving on... The book is now a few years old, and thus misses some recent market changes. There are several funds that now implement buy-write strategies, making it much simpler for investors to access these strategies (I don't *think* the authors mention any of these funds, but it's possible I've forgotten a brief mention somewhere in the book). From my brief inspection of the results of some of these funds, they haven't done very well so far, which bodes ill for individual investors thinking they can implement such a strategy on their own.
   
   Anyways, I've devoted a lot of pixels to picking at the book. In my opinion, it fails to prove that the strategy it advocates is a good one. However, that doesn't mean that the strategy ISN'T good, only that the book fails to prove things one way or the other. But if you're convinced by other evidence that covered call writing is a good strategy, or if you simply want to take your chances (I don't advocate the latter), then the book does at least offer a good overview of the mechanics involved. That's why I give it 3 stars...



3. Very good book on covered call writing. Gives alot of of basic info for beginners, as well as advanced techniques as well.



4. Messrs. Lehman and McMillan are excellent writers. The reason for choosing this book was my previous knowledge of Larry McMillan and his reputation in options as a teacher and trader. Moreover, my interest in purchasing this book was not so much as to "how" to write covered calls, but "when" and "why" to close out the position, and what the best strategy for writing OTM, ATM or ITM covered calls. I was pleasantly surprised as to everything covered in this book. I learned so much and I certainly had all of my questions answered. Since, one must be very careful when trading options, covered calls are the safest way for the novice trader (in my opinion) to put money in your pocket each month, and this book was extremely helpful not only in the selection of the best stocks but also the execution.



5. Before reading this book, I already have something introductory knowledge about option from Cohen's . I finished read this book in two days -- it's too superficial, you can go throught it very quick. Here is what I learn from the whole book.
   
   1. Covered call writing could be profitable.
   2. Covered call writing could be risky.
   3. Covered call writing need skill to choose between strike, expire, and market timing.
   4. Covered call writing could be adjustable (roll up, out, down, and etc.)
   
   The major problem: this book is lack of examples. It makes the book a full list of common conceptions.
   
   Sorry if I am too cynical or offensive.

5 comments about Cashing in on Covered Calls. Investing with Stock Options.

1. This book is an excellent read.Alan Ellman has developed a profitable system that a novice can follow as well as a seasoned investor.Alan makes the art of selling covered calls easy to follow and understand.The approach is very conservative,producing a steady monthly income stream.I have been selling covered calls using his system and have had a positive cash flow every month(even when the market went down).I highly recommend this book to anyone looking to successfully take charge of their own finances.



2. Best Book on covered call options that I've read
   This system was a real eye opener -Takes you step by step through the entire process from picking the correct stocks to exit strategies-While most option books only give you a cursory glimpse into covered calls, Ellman's book goes through the entire process-A must read for beginners and veterans alike



3. For the first time in my very long life the market is now my friend. This system is so clear and concise I'm even getting great returns in the market. Just following Alan's advise alone can point you in the right direction toward financial freedom. A must read if your looking to do things right.
   Dennis Hand



4. ALAN, I want to thank you for your book on Covered Calls. I subscribed to a course that cost several thousand dollars to learn all the different ways to use options (Bull Call, Bear Put, Straddles and Iron Condors etc) but they never told much about covered calls. I bought your book for $19.95 and a Subscription to Investors Business Daily. I have recouped my investment in the course and have settled on using covered calls exclusively to do options. My thanks to you for showing me the way. It involves much less risk and your method is a way that I can do options without losing sleep. It does require some monitoring, but that only takes a few minutes a day. Thanks Again



5. The book contains key concepts for creating a potentially profitable trading system, but doesn't go into enough detail in certain areas, especially regarding what to do when a stock goes down. I wanted more strategies dealing with managing losses, but I think the author saved that for his extensive line of CDs and DVDs. But you can figure out strategies of your own if you research, ponder, and trade long enough.
   
   My final word is for you the reader to enter the market slowly and get used to the rules of placing trades, to get a feel for how the market moves and how much, and to experience the feeling of having your money on the line (much different than when it's paper). Eventually you can move into bigger positions and discover how much "stress" you can personally endure. It took me many nights of half-sleep before finding a level of risk/reward I was comfortable with.

No comments about High-Powered Investing All-In-One For Dummies (For Dummies (Business & Personal Finance)).

5 comments about The Options Workbook: Fundamental Spread Concepts and Strategies for Investors and Traders, 3rd Edition.

1. This books explains most option constructions and how to calculate there potential profit. If you need to train yourself in spreads concepts, this training manual is for you. First the spread is explained and then some calculation examples are given. Don't expect a when to use these spreads manual. It's not there. This is a excellent book for training yourself in setting up all kind of option structures and know what the costs are and profits. Also all the Greeks are explained in detail, and the first manual that makes it understandable for me :-)



2. I am an amateur stocks and options trader. I have read, and continue to read, many books about the markets, about stocks, and about options. Options are more interesting to me than any other investing medium because of the ability to make quick gains and because of the innate limitation of losses. With so many options plays in existence, it's easy to get confused.
   
   I picked up The Options Workbook and it cleared away much of the mystery of options investing. This book outlines the most common options plays including spread concepts, butterflies, condors, and many other trading techniques. It contains a primer that teaches about the Greeks, and about how to read the fundamentals on potential investments.
   
   I didn't find a lot about chart reading technique n this book, but you can get that from other excellent books. Part of this book's strength is found in its quick charts that show, at a glance, exactly how to execute most options strategies for upward and downward moving markets. Since I have read this book, I have traded nothing but options and have grown my portfolio steadily. I'm no longer interested in buying stocks; they are simply too expensive and slow moving.
   
   Hope this helps.
   
   - Craig Nybo, co-author of Total Human: The Complete Strength Training System



3. I picked up this book in preparation for an interview I was having in the equity structured products desk at Morgan Stanley. Although I had taken a Financial Derivatives class at Wharton, this book helped explain the basics. It goes through all of the fundamental and basic strategies, as well as spreads. The value in the book is in doing the examples and working out the max gains, loses, break-evens etc. It seems basic but as you begin to put together more complex trades these exercises stay with you and guide your understanding. The book also does a decent job of explaining the Greeks and volatility. You won't come away ready to put on any overly complex trades, but you might be comfortable putting on your first call back spread knowing what your risk and reward profile is.



4. Haven't been able to put it down.The questions after each chapter really help you make sure you get the info.I can't wait to finish the rest of the book.The author has a great way to simplify the information.



5. Saliba describes each of his fundamental spread concepts and strategies in plain simple english, yet so concise, almost skeletal with such verve that I decided to construct a wall chart reflecting its contents.
   
   The wall chart now sits proudly on my wall ( in the presence of 3 other wall charts ) and shows the 7 categories of option strategies - Synthetics, Insurance, Directional/Neutral, Directional, Either Direction, Non Directional and Volatility and their sub categories etc.
   
   For this reason I think that Salibas book is perfect for the beginner.

5 comments about Stock Options for Dummies.

1. I was misled by the title of this book am disappointed. This book is NOT for individuals who want to take their investing to the next level and start trading options on the open market, as I had expected -- rather, it is for people who are offered stock options through their employer.
   
   If anyone knows of a good beginner's book for trading stock options, please clue me in.



2. First, disregard the 5-star rating. *I* think the book is good of course, but that's not why I'm writing this comment.
   
   To the two recent reviewers who complain that the book isn't about puts and calls but rather about ISOs, NQSOs, etc. - look, I'm sorry for your inconvenience but if you had taken about 2 minutes to skim the table of contents and the editorial review on the amazon.com page ("...your company's stock option plan..."), you would CLEARLY see what type of stock options this book discusses. In fact, taking less time to do so than it took you to write your complaint-reviews and give the book a poor review would have saved each of you $20 or whatever the book cost you.
   
   So my sympathies to you for your misspent $, but come on: blaming the author and publisher for your own haste and, further, feeling the need to do so publicly on an amazon.com review with one- and two-star rankings? (At least the other reader who did the same thing back in August, 2003 had the courtesy to give a 5-star ranking because of the reselling experience on amazon.com to rectify his/her error.)
   
   I sincerely hope that if you do begin to dabble in puts and calls - the other kind of stock options - that you do so with much greater care than you took in making your respective book purchases. Otherwise, you should really think twice about that side of the investing world.
   
   To the one reader who is looking for a beginner's book about the other kind of stock options: see "Futures and Options For Dummies" by Joe Duarte. But do your homework first before buying!



3. This book is aimed at employees elegible to receive stock options in the company they work for from their employer.
   
   It is NOT for investors wishing to buy and sell stock options through a stock broker.



4. This book, to me, was completely worthless. I purchased it thinking, like others commenting, that it was about options trading (puts, calls, etc.), not about "employee stock options" (which is what the book should be titled).
   I did read the author's response to criticism about the title, and I think he has some valid points; and in return I would like to sell him a coffee table book entitled "Cats" with a cute little kitten on the front. When he opens it I'm sure he'll be happy to see that it's full of pictures and information about catepiller industrial equipment.
   Also, his argument that anyone who looked at the table of contents would know what the book is about proves that he does not realize who his audience is: This is a "for dummies" book; it should be assumed that the reader knows very little about options. So, how would someone who knows extremely little about options know that chapters entitled "Stock Options: What you need to know right off the bat", Exercising your stock options", and "Finding stock option information online" are not what they are looking for?
   While this book may be very useful for someone wanting information about EMPLOYEE stock options, it was completely worthless to me. Make sure it's what you're looking for before you purchase.



5. This book is a review of employee options. I was hoping for a more comprehensive review that would explain options buying , trading etc.
   It is adequate for the topic of employee options , but nothing else.

No comments about Big Money, Less Risk: Trade Options with foreword by Michael Thomsett.