Books

The following books are recommended reading to learn more about covered calls and options investing:

Getting Started in Options, Michael C. Thomsett. "Investing in options sounds so risky that many people fail to capitalize on this potentially lucrative opportunity. In non-technical, easy-to-follow terms, this book thoroughly demystifies the options markets, distinguishes the imagined risks from the real ones, and arms investors with the facts they need to make informed decisions."

Investing Without Fear: Options, Harvey Friedentag. "From basic options terms to finding the best optionable stocks, to a winning investment plan creating and utilizing an option portfolio, this book provides low stress tactics designed to make predictable profits when the stock market moves up, down, or sideways."

New Insights on Covered Call Writing, Richard Lehman and Lawrence McMillan. "...presents an investment approach that, though it has been used by some traders for thirty years, is largely unknown or misunderstood by active investors and traders. This book shows how to use this powerful investment technique for success in today's and tomorrow's markets. It gives a complete guide to the increased control and lowered risk this technique offers active investors and traders, and will take writing covered calls from under the general umbrella of options and make it accessible to a broader range of the investing public."

Options as a Strategic Investment, Lawrence McMillan. "This blockbuster bestseller--more than 100,000 copies sold--is considered to be the bible of options trading. Now completely revised and updated to encompass all the latest options trading vehicles, it supplies traders and serious investors with an abundance of new, strategic opportunities for managing their investments."

Options: Essential Concepts, The Options Institute. "This latest edition remains the state-of-the-art guidebook for getting started in options trading--and understanding the motives and objectives of each player. Up-to-the minute research findings and strategic insights outline a practical, hands-on approach to trading options, helping traders of all experience levels master the basics as they make more tactically sound, intuitive, and profitable decisions."

The New Options Market, Max Ansbacher. "With the help of numerous real-world illustrations, appendices with over thirty Web site suggestions for options traders, and specific advice on option picks, he explains the basics of trading theory and practice. In easy-to-understand, nonmathematical language, The New Options Market, Fourth Edition, is a highly personal, and newly updated guide that is specifically aimed at options traders in need of knowledge that will lead them to success."

The Short Book on Options: A Conservative Strategy for the Buy and Hold Investor, Mark Wolfinger. "A concise, easy to understand primer that first teaches the basics of stock options and then offers a hands-on approach to using options in a conservative manner. Beginning with a description of what an option is and how an option works, the book takes the reader on a journey from learning the language of options to being prepared to trade. The book is especially useful for long-term buy and hold investors, owners of a self-directed retirement plan, investment club members or anyone who wants to increase the performance and safety of his/her investment portfolio."

And, here are some recommended books on investing strategies and philosophies:

Against the Gods: The Remarkable Story of Risk, Peter L. Bernstein. "Peter Bernstein has written a comprehensive history of man's efforts to understand risk and probability, beginning with early gamblers in ancient Greece, continuing through the 17th-century French mathematicians Pascal and Fermat and up to modern chaos theory. Along the way he demonstrates that understanding risk underlies everything from game theory to bridge-building to winemaking."

Extraordinary Popular Delusions & the Madness of Crowds, Charles Mackay. "Why do otherwise intelligent individuals form seething masses of idiocy when they engage in collective action? Why do financially sensible people jump lemming-like into hare-brained speculative frenzies--only to jump broker-like out of windows when their fantasies dissolve? We may think that the Great Crash of 1929, junk bonds of the '80s, and over-valued high-tech stocks of the '90s are peculiarly 20th century aberrations, but Mackay's classic--first published in 1841--shows that the madness and confusion of crowds knows no limits, and has no temporal bounds."

Fooled by Randomness: The Hidden Role of Chance in the Markets and in Life, Nassim Nicholas Taleb. "In Fooled by Randomness, Nassim Nicholas Taleb, a professional trader and mathematics professor, examines what randomness means in business and in life and why human beings are so prone to mistake dumb luck for consummate skill. This eccentric and highly personal exploration of the nature of randomness meanders from the court of Croesus and trading rooms in New York and London to Russian roulette, Monte Carlo engines, and the philosophy of Karl Popper."

Reminiscences of a Stock Operator, Edwin Lefèvre. "Reminiscences of a Stock Operator is the thinly disguised biography of Jesse Livermore, a remarkable character who first started speculating in New England bucket shops at the turn of the century. Livermore, who was banned from these shady operations because of his winning ways, soon moved to Wall Street where he made and lost his fortune several times over. What makes this book so valuable are the observations that Lefèvre records about investing, speculating, and the nature of the market itself."

The Essays of Warren Buffett: Lessons for Corporate America, Warren Buffett with Lawrence A. Cunningham. "The definitive work concerning Warren Buffett and intelligent investment philosophy, this is a collection of Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades that together furnish an enormously valuable informal education. The letters distill in plain words all the basic principles of sound business practices. They are arranged and introduced by a leading apostle of the "value" school and noted author, Lawrence Cunningham. Here in one place are the priceless pearls of business and investment wisdom, woven into a delightful narrative on the major topics concerning both managers and investors."

The Intelligent Investor, Benjamin Graham. "The classic bestseller by Benjamin Graham, perhaps the greatest investment advisor of the 20th century, The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide. Since its original publication in 1949, Benjamin Graham's book has remained the most respected guide to investing, due to his timeless philosophy of "value investing," which helps protect investors against the areas of possible substantial error and teaches them to develop long-term strategies with which they will be comfortable down the road."

Have you read a good book on covered calls or investing that is not in this list? Please e-mail us.

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