Bold Money: A New Way to Play the Options Market

Written for newcomers to options trading with an average amount of money to invest, this guide explains how to gauge the risks and estimate the rewards for successful investing and details a concrete strategy for winning

Van Peebles, director/producer/actor turned options trader, claims that buying ( not selling) options is less risky than stocks because options are less capital intensive and the potential loss is limited to the premium. The "new" in the subtitle refers to the fact that the fair value of options is now realistically never out of line because of the instantaneous calculations of computers. The investor, freed of this worry, can concentrate on guessing which way stocks, indexes, or commodities are going and bet accordingly. Van Peebles explains the mechanics of trading and some of the strategies, none in sufficient depth. The style is excessively cutesy and some concepts are misinformed. Libraries would do better with Max G. Ansbacher's two books on options, the free booklets published by all the exchanges, and/or the free booklet of the Options Clearing Corporation. Alex Wenner, Bloomington, Ind.
Copyright 1986 Reed Business Information, Inc.