Book Review : Safety First Option Trading by Wade Cook
I reread this book on a airplane ride, as I remembered it containing some trading gems. It didn’t disappoint. The first time I read this book I was a beginning options trader, and I think all that I got out of it was excitement about options. It’s funny how after over ten years trading options I read this book again and suddenly he ideas jump off the pages and due the money dance. In option trading parlance I can now understand why these trades work so well.
Wade Cook was seemingly a jack of all trades, and like Aristotle we may never know how many books he authored or how many were ghost written. But in terms of options the chapters on buying and selling calls on stock splits were decent enough, a low to moderate probability trade depending on the market direction, but I thought his chapter on Bull Put Spreads was very good. His corresponding discussion of bear put spreads was also very good.
I also think his chapter explaining option risks was refreshingly clear and in general lacked the usual annoying and confusing option trading idioms which are common in other books. Wade Cook does a very good job of defining only what you need to know now, when explaining his strategies, which makes his chapters short reads, thank goodness, as many Option texts are better sleeping pills then learning aides due to endless lists of terms and definitions.
Lastly, he avoided all mention of Option Greeks, except where it was a core concept. A habit apparently considered blasphemous in options circles. Wade does waste ink.
Conclusion:
I thought the book was a very good introduction to the safety aspects of options trading and he does a very good job of giving jargon free explanations. I would give this book a solid 8.5 overall and a 9/10 for the spread trade chapters.
I think it’s a good book for people who have a few books under their belts as you’ll get more out of it.
✍🏼 written by Shortsegments
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