I am only 100 pages into this book and it has already made me money. (My review is based on the hardcover not the workbook) I have been investing my own retirement funds for years and have dabbled in options from time to time.

I was focused on one strategy and didn't think of all the others. Mr. McMillan provides good examples of all the strategies and refers back to previous charts to reinforce his points. My options trading is now more focused because of the discussion on the discipline and psychology of trading.

At first I was hesitant about paying $50 for a book but it made me 8 times that much in one day. I would recommend this book to anyone who already knows what an option is. While the book starts with the basics it quickly moves on to strategies. Mr. McMillan I may be retiring a bit earlier than I thought. Great book!!!!

Don't get me wrong, I do like the book but the author has an annoying habit of providing an example to illustrate every point that he makes. The book has 962 pages of main text including the appendix but there is really only about 100 - 200 pages of commentary - the remainder is constituted by the authors examples. You can read the book to the exclusion of the examples.
The author, McMillan,is an experienced arbitrageur and therefore does not focus on directional trading. The first 410 pages concerns option strategies. EXAMPLE: buying and selling calls and puts, 3 advanced strategies for professionals, calenders and butterflies.
He describes each strategy then suggests follow-up action to apply if the trade goes right or wrong EXAMPLE: leg out, roll down, roll up, roll out, adjust the delta neutral ratio, close the trade.
He then states how to select the best option for the strategy EXAMPLE: " stock nearing striking price initially, 2 to 4 months remaining until near term expiration, near term straddle price at least two - thirds of long term straddle price" (page 354)
He then applies the option strategies to different markets EXAMPLE: futures, structured products, stock indexes.
The author also discusses pricing models however Sheldon Natenberg's book "Option Volatility & Pricing" provides a superior discussion to that of McMillan.
I recommend the book.Options as a Strategic Investment

I worked at Larry's office for over 3 years and anyone who would rank this book a 1 or 2 simply doesn't have the mental capacity to be a true options trader. First of all, I left his office only because I wanted to get out of sales. I still trade options and the lessons I learned from him and his books are used daily. I read people's review about his presentation style and it makes me laugh at how people want to be sold. They want to be duped by a con artist guru so bad and don't even realize it. Larry is a former mathematical programmer turned Wall Street trader - not broker. What do you expect from someone like that? Believe it or not, Larry likes to sell him seminars, books etc. simply for exposure and to get out of his office to have a beer with like minds. Anyone who likes an option book because it's an easy read is a schmuck!

Nate - Nashville

Well written with lots of examples to help you understand the concepts. I've used it as a reference many times as I've constructed trades. It's a big book but it's value will pay off for you handsomely.

One cautionary note on this book is that it was written when trading costs were substantially higher. There are examples in the book where it will discuss trading 500 shares and paying $300 in commissions which clearly doesn't apply anymore. As you read through the book, you may need to alter your strategies accordingly.

I actually ended up finishing this FAT book, even though I felt I was reading the same rhetoric again and again all along the book. This book could have been a lot SLIMMER. Although not a bad book to have in the library. I use it every now and then for reference (like margin requirements, prospective gamma changes, etc.).
Considering there are very few books on options trading out there that has good substance (although, there are decent amount of articles and research papers on options out there), it's a must have for your library, whether you are seasoned options trader or an intermediate options trader.

This book is pricy but it's a super book. If you have any desire to learn stock options, this a must read. Stock options have very high risks and should not be traded if you are a beginner


David Colletti
Founder
StockTradersHQ.com

Extremely dry writing style, but very comprehensive and informative. Covers pretty much every conceivable option strategy in the context of both equity and futures options and imparts realistic expectations.

Supplement with Option Volatility & Pricing by Natenberg, and them maybe spend some time playing with a good modeling platform like the one provided by [...]

It was my bad for not reading the entire title, I ended up returning it for refund.

This is a review for the non-professional investor or for the new full time investor who is considering a possible 2nd career or full time activity with their personal funds.

As an individual investor for over 30 years, I thought I knew the ropes about Options and Stocks. The first 94 pages opened my eyes to what I did not know! These pages alone have changed my investment strategy profoundly and for the better.

This is a best of breed book. It's pithy and precise. It's not a breezy read. But the good news is that it's comprehendable to the non-professional. I was delighted with excellent concept presentations, examples, and well defined terminology.

In exchange for the effort of reading and re-reading - yes plowing through it -- you are rewarded with the techniques of the pros. You'll see options investing in a very different and profitable way.

You might consider investing your time an money in this book before plunging thousands of dollars into "investor education" which is marketed so aggressively today. Once you know the fundamentals that this book provides, you'll be in a better position to assess the value of these other alternatives.

I can't give this book enough praise.

Considered by many professionals as the bible of option trading, Options as a Strategic Investment is a must have addition to any serious option's trader. Option trading is widely misunderstood and feared by many stock traders mostly because it takes real effort to really capture the mechanics that is behind this trading form.

This book will help anyone that is beginning in this exciting field to get a grip of all the things that is involved in option trading and is a great reference book for professionals. The lessons are clear and the information is up to date and straight to the point. Studying this book alone or even better...this book with a few other reference books will get you in the right direction of this often misunderstood but highly profitable form of trading. A must buy addition to anyone's trading book collection.

This is an excellent book for the serious option's trader. Very detail and in depth explanation of all different types of option trading strategies. Recommended!

This book is written in clear, easy to understand language with examples that go further to clarify what a specific strategy/technique is. It is not a boring, academic book. The only drawback that I have run into is that the commissions for trades are far in excessive of what is available through internet brokerages. The impact is that sometimes the book will stress that commissions will make a big difference in outcome whereas that is not generally true in my experience. I immediately learned about using in the money covered calls that either produce income or significantly lower the cost per share of a security and profitably but this to use.

This book is probably the best on the subject. It is usually called the Option Bible. It would be nice if it was updated to reflect some modern trades (e.g. condor).

After reading The Options Course by George Fontanills, which is a very good book for beginners, you'll want take the next step. This is THE ultimate book on options. It covers absolutely every aspect of options trading. Your mouth will drop after you put your hands on this book. There's a gazzilion ways to cut your risk and maximize profits, and this book reveals every single one in detail. Do yourself a favor and buy this book.

The only problem I see is that the book is really, really boring for beginners and people who are not serious about trading options. I was just learning the basics when I first read it, and it was pretty hard to finish it. Read a couple of other books on options for beginners (like George's) and start paper trading options BEFORE you buy this one. I read a lot of books before I started trading and hated most of them. Now that I know how the real thing works and all the potential, I feel much more compelled to read it all over again.

The book offers an overview of every trade possible, all scenarios and follow-up action. All the examples are very clear and well explained. There's a lot of ways to lock in profits too, all very well described. Even if you've been trading for 10 years, you will be amazed when you read this book. If you read it thoroughly 4 or 5 times a year, there's absolutely no excuse for you not to become a master in options trading. If all the other books are the options college, this is your PhD course.

I was looking for information on options and I came across this book. After looking at it I thought it would be just right. This is definately a hard core study on options. I would suggest getting the accompanying workbook. When you buy this prepare to take notes. This and one or two other books will definately prepare you in understanding options, valuation and where/when to create options. I only say one or two other books to re-inforce what you read and to potentially fill in any gaps left behind. I don't think there are any gaps besides advanced strat. It also assumes you have some basic(rought) knowledge of options.

Whereas most options book cover the standard options strategies, this book not only covers them in depth, but also with unique dynamic perspectives. Yet it goes much beyond that: volatility (a key concept), the greeks and more are covered in great depth and showing outstanding insights.

There have been complaints that this book is too theoretical and provides not many practical applications if any. Nothing could be further from truth. Details and practical examples are everywhere.
A must book for any optons trader.

This is an advanced work that is great for someone who has been working options for more than a decade. The author should have spent more time with practical applications and techniques rather than all of the technical details with which he focuses attention. Like most people who have been active in options trading, he is writing this work for people who are actively trading advanced options on a daily basis. This is not a practical applications approach. It appears to be more of an effort to impress others of his knowledge level rather than a teaching aid. Not for the beginner. This will not teach you the basic information that you need to become comfortable with this subject.

After having read numerous options books, this one is the most complete. What i like about this one is it has follow up ideas for every option strategy when things go against you in a trade. There are detailed discussions on leaps, futures, and everything else imaginable. It is a rather large book, but you can find any information and idea around. Instead of owning different books for various reasons, this one covers it all. If you must own only 1 options book this is the one.

WARNING !!! This book is not the real Book, but just a study guide (has got solutions to the orginal book). Some parts of the description of the book gives an impression that this is the paperback edition of the hardcoer version (# ISBN-10: 0735202389 # ISBN-13: 978-0735202382) And in one of the options in the Hardcopy page this product is shown as the paperback version of the hardcopy. Fact is that both the books are different.

For those who are looking for the get-rich-quick-holy-grail-illusion, find your self another book about fairy tails.
If you are serious and determent of becoming a serious trader private or professional with an in depth knowledge and understanding of options, this is your book! This book describes just about every fundamental option strategy you could try. It covers in depth the total return concept of covered call writing, the pros and cons of option buying, examines various types of spreads (vertical, calendar, and diagonal, ratio, reverse ratio) and the various delta (price) neutral strategies and how to calculate the ratio's. There are strategies explained like deep in the money call spreads which totally amazed me that there are actually profits possible. It is explained clear and to the point. After reading it made me very confident about using them in the market and when. Anyone of average intelligence and stock market knowledge could follow it. For the total beginner, I would advice start with an other introduction in options, and put this book on your list anyway because it will bring your knowledge from high school level into university level of option trading.

Really got me thinking and was filled with very useful, helpful, informative, but easy and simple to understand tricks. One of my favorites. A+

I would suggest a more basic book on options before you get to this. Once you understand the "easy" basics this is definately your step 2 book.

Arid book, but nothing is easy. So to put it you need to perseverate in order to read it. Both after reading it twice it will make you understand that you dont need to guess when how and what to trade anymore, and bye-bye expensive seminars.

As a new investor, this book I find very interesting but a little to intense to digest except in pieces. As my knowledge increases, I am sure this read will be an excellent resource.

McMillan strikes the perfect balance between material and readability. The book is also comprehensive, logical and complete. In my opinion this is the perfect book on options and as such should be required reading for anyone involved in financial markets.

This book would also make an excellent gift for anyone you know who is active in the stock market.

nothing cutting-edge or eye-opening, but this is a very comprehensive book on options.

good good.

I have read many books on options and taken several courses and this book is by far the best. Many authors and instructors insist that their favorite options strategy is the best and only way to trade. MacMillan does an excellent job of describing the strategy thoroughly, provides a balanced review of the advantages and disadvantages of that strategy, and distinguishes the performance of the various strategies in different market situations.

But, the disadvantage of being thorough is that it requires a lot of pages. This isn't your typical "Options for Dummies" book.

This book is not a fun read by any means, on that note, it is the best options book on the market. If you are an options trader I would absolutely recommend this book. This book is to Options trading what Benjamin Graham's Intelligent Investor was to finding Value. However, if you are a beginner, this is probably going to be a bit over your head. I'd start with a more basic book first.

I always thought McMillan's 3rd edition was great --- his latest edition is even better! Investors interested in venturing into options absolutely need to gain the author's many years of experience before speculating with their first dollar. The book does not assume much in the way of previous knowledge other than familiarity with stock trading. For the mathematically inclined, Reehl's "The Mathematics of Options Trading" makes an ideal complement.

I have a read Options made easy by Cohen and another unnamed options book back in high school, and this one puts them both to shame. It covers strats. in such detail. The book is about 1000 pages hardcover, it's ALOT of great info. Wonderfully written for any level investor, in my opinion. Buy this book today I assure you it's the best you'll ever read on options. I'm being serious, go to the top of your screen and click the buy now button, now.

Other books may--but probably don't--deal with specific topics relating to options trading better but this is by far the best all rounder. I've read it cover to cover in this edition (4th) and also the 3rd yet I still, even as a fulltime options trader, refer back to it. The insight, experience and answer is always there.

I recommend it to strategists who attend my seminars and I recommend it now.

Options as a Strategic Investment is the best book I've read on option trading. It is not a "get rich quick" book by any means, it is a nuts and bolts tutorial on the pure mechanics of option positions and strategies. It is easy to read, and each concept builds seamlessly on top of the last. It's a great read from cover to cover, but also a great reference guide for the quick review of a forgotten concept.

I've browsed/read a number of equity options related books and this is the best one I've come across for someone that is kind of at the intermediate level. It's very much a "how to" book that goes really in-depth on strategy. Almost as if the author were reading your mind, he addresses what the options trader/speculator is thinking and breaks everything down in a nice, simple manner. For instance, he has sections on what the alternatives and their pros and cons are if you have an option that has moved in-the-money and what things you need to consider. This book focuses on strategy, application, and practice...not much, if at all, on theory (Black Scholes, etc.) and that's what I like so much about this book.

I won't say I've read every book on Options out there, but I've looked at a range, from the very complex, full of calculus equations and whatnot, to the very simple, and to my mind, this is the best out there. First of all, it is very thorough and well organized. It goes step by step through virtually every option strategy, analyzing the various payoffs, follow-up actions if the market goes against you, etc. It is written clearly and concisely, with lots of examples. One reviewer says it's too complicated. If you think this book is too complicated, then you simply should not be trading options. Period. Another critic says there are too many examples. Yes, there are a lot of examples, and if you find you understand the concepts the author describes just fine without the example, then you'll probably just skip them. However, if there is something you don't quite get, the examples are a real help. I think some reviewers were hoping for a book that would tell them how to get rich in a few months trading options. Well, good luck, and let me know when you find it. But for a terrific reference that every serious amateur will go back to time and again, then this book should be the first on your Options bookshelf.

In the description of the book, I think an error was placed saying " (Paperback - January 23, 2003) ". Check all the books by Mcmillan, and you'll see two version of Option as Strategic Investment, one is the 'book', the other, cheaper, is the workbook.
The 'book' is about 2" thick, quite heavy on the arms! The contents are precise. For each strategies, e.g. long/short call/put, spreads, ect..., Mcmillan explains their definitions, their reasons, their advantages, their pitfalls. This is purely a 'theory book'. If you have an opinion on the market (bullish/bearish/neutral), and want to see different spread strategies possible that could apply to your trading, this is a great book to read. If you want to find out what the floor traders do with your order, are they fair, or try to skim off your order, or try to manipulate the price..., you will not find it here.
p.s.: (I gave 4 stars because one should never give 5 :p )

This is the most comprehensive book written on options and its strategies. There is nothing missing in here. The book covers all the strategies and each includes all the calculations needed to figure out what you have at risk. After reading this book I was able to calculate margin requirements, profit, loss, and risk.

Try as I might, I cannot understand the negative reviews here. This is THE book on options. McMillan writes clearly and well. There is nothing glib here -- no promises of great wealth, no hype, no pandering to fools. What is here is solid information presented well and thoroughly.

A criticism that came up more than once (copy cat reviews?) is that the book doesn't show practical stuff. What! It provides all the information that any reasonably intelligent person needs to UNDERSTAND exactly what the strategies are and when to apply them. To ask for more is to ask for easy and oversimplified answers that will part you from your money.

The book is thick. True. You don't need all that is in it. True. The book is frightening or dull or not as useful as (gimme a break!) Wade Cook!!!

Hey! It's a text book, not a novel. Wake up! You can use it to find what YOU want to know.

There is more useful information in this book than in any hustler's high-priced and hype-filled seminar. It's all you need and it's currently selling for less $. Don't get scared off by the negative reviews or you'll miss out on the most respected and best of all the many books written on options.

If you're not willing to spend $ and a little effort to learn about options, you're not likely to profit from them. Buy the book. Then, sit down and read in it to find the definitive answers to your option questions. It simply doesn't get any more accurate, any clearer, or any better.

(Oh yes, one or two reviewers suggested that the book is out of date.