My Books

I’ve published three dead-tree books, and 4 eBooks. I strongly recommend The Rookie’s Guide to Options, 2nd edition (2013). In my (biased) opinion, the first edition is destined to become a classic primer. Read those reviews at They are genuine.

The 2nd edition is now available as an ebook (.pdf or Kindle). See details below.

Although written for the beginner, there is enough advanced material to make this book useful for years to come.

2nd edition cover

2nd edition cover

When writing The Rookie’s Guide, I provided extra detail, just as I do in my blog posts. Why? To anticipate questions and perhaps answer them – before you ask.

I explain why calls and puts are interchangeable when you buy or sell stock with the options, and that some positions are equivalent to others. This type of information is not available in most books targeted to rookies.

One chapter contains a thorough discussion, with proof, of why these different-looking positions are truly equivalent and deliver essentially equal profits or losses. [The returns are only ‘essentially equivalent’ and not identical because bid/ask spreads and minor inefficiencies make it next to impossible to trade the different positions at the exact price that makes the trades equivalent.]

Understanding this single chapter places you years ahead of most novice option traders.

There’s much more to say, but the reviews and testimonials speak for themselves.

The paperback version sells for $27 retail, and amazon is offering a discount.

Rookie’s Guide 2nd Edition; eBook

I offer a FREE sampler version of the first edition that contains a very short excerpt from each chapter of the first edition. This book has been downloaded more than 13,000 times and offers a good idea of the contents of the full book.

The .pdf (e-book) version of the SECOND EDITIONAdd to Cart is available for $10.

The Kindle version ($9.99) is available at


I published my first book, The Short Book on Options in 2002 and it is available as a paperback or Kindle eBook. The Short Book on Options: A Conservative Strategy for the Buy-and-Hold Investor explains the basic concepts of how options work along with a good description of how to write covered calls. If you are looking for an inexpensive way to get started with options, this book is still useful. If you plan to achieve more than just ‘getting started’ status then the Rookie’s Guide would be a better choice.


Between these two books came Create Your Own Hedge Fund (2005). By examining the strategies of covered call writing and selling cash-secured puts when using a mix of ETFs (Exchange Traded Funds), I show the individual investor how he/she can own a hedged and diversified portfolio. And that’s exactly how some of the less sophisticated hedge funds operate. You truly can create and mange your own mini-hedge fund.

More recently I’ve concentrated on producing new eBooks. Seven are available now, including the Rookie’s Guide to Options. They are available in several formats at your favorite online bookseller.



Two e-books are available free. One is a sampler version of The Rookie’s Guide to Options and the other is An Introduction to Options: The Basics.

To receive either (or both) books at no cost, follow the link. It takes you to a shopping cart, but don’t let that be a concern. The cost is zero.


27 Responses to My Books

  1. Tom Patane 02/11/2011 at 5:25 AM #

    Are any of your books available in audio or video format?
    With so much to learn – what is really needed is personal consulting.
    Wont you direct me to such a resource?

    • Mark D Wolfinger 02/11/2011 at 7:59 AM #


      The Short Book on Options is available as an e-book ($3.50). It’s a beginner’s book and covers the basics of how options work – in detail. It covers only one trading strategy because it is a rookie’s book. That’s my only e-book as far as options education is concerned. Making books available an e-books is strictly the publisher’s decision.

      If you seek training or coaching, that’s very different from needing education or lessons or discussions on aspects of trading. I can help if you are looking for a ‘teacher.’ If you truly need a coach (someone who sees what you do, finds and corrects errors in technique, timing, entry/exit decisions – I don’t do that). Send e-mail to me at blog (at) mdwoptions (dot) com for additional information.

      I wish you well

      • Vinod 02/28/2013 at 3:52 AM #

        Hi Mark!

        is The Rookie’s Guide to Options good for beginners like me who haven’t taken a single trade & are not from US or Europe?

        Also don’t you accept credit cards, I don’t have a paypal account.

        Thank you

        • Mark D Wolfinger 02/28/2013 at 8:20 AM #



          The book is designed for people who know nothing about options.
          It takes you through the most elementary ideas of what an option is and how it works.
          It describes 6 different strategies in detail. The ideas is for you to find one that you understand and like to use.

          The book discourages people from BUYING options.
          The book is not for gamblers, but for people who want to trade with less risk.

          Via e-mail, I’ll talk about the credit card.

          • Vinod 03/01/2013 at 12:38 AM #

            Thanks for the reply Mr.Wolfinger, one last query, I’m interested in trading currency options, is your book & strategy useful in other option markets like currency & commodities?

            The book is 100% about equity (stock and index) options.

            The principles are the same for commodity and currency options.
            The same strategies can be used.

            However, I have zero experience with currency trading, and I do not know if there are subtle, but important differences in currency options.

            Bottom line: The Rookies Guide is an excellent education for option traders. However, if I were in your situation I would want to find (if it exists) a book that is about currency options. Then you could see if that book is good enough, or whether you also need a more general book on options.

  2. Pete Caleca 02/12/2011 at 6:20 AM #

    I am finishing Michael Sincere’s 2 books and he recommended that I contact the options guru for further instruction. I asked if he knew of any educational books on how to do technical and fundamental analysis for beginners. He mentioned another book of his and your blog so I thought I would see what direction you would recommend.

    • Mark D Wolfinger 02/12/2011 at 8:34 AM #

      Hello Pete,

      I come to trading/investing from a different direction, and use options for shorter term trading ( a few weeks to a few months). For that reason I do not care about fundamental analysis. I would never wand to discourage anyone from doing that, but it is truly for longer term investors. The fundamentals seldom affect the price of any stock quickly. It takes time for the fundamentals of a good company to become recognized by the market place. In other words, stock prices do not change overnight.

      I’ve never learned anything about technical analysis. Some believe that no one can trade without it – and for anyone who generates profits by using technical clues, i say great for them. I know these people exist an find TA to be powerful. I’ve never learned, never trusted the results, and so I don’t use that either.

      There are many books on this subject, but I have not read the and cannot make recommendations. I recommend that you read some blogs written by people who do such analysis and I’m sure you will find a few that resonate well with you – and some that will not.

      Here, I’m busy enough responding to options and options ideas and strategies. If you are skilled in either FA or TA, certainly add those skills to option-trading skills to time your entries and exits. I encourage that. However, I can offer no guidance on how to do that.

      If you have options questions or want to learn to understand how options work (allowing you to determine whether options trading is for you), then I do recommend a book that I wrote: The Rookie’s Guide to Options. If you would rather save a few dollars, you can see what your local library has in stock or check out your broker and learn what educational material they offer.

      I wish you well. Trading options is exciting and takes a bit of effort to get going. However, the purpose of this blog is to help you get started on the right foot, so feel free to ask questions as your education progresses.


  3. Peter Girr 02/25/2011 at 5:46 PM #

    I want to purchase “Lessons of a Lifetime” pdf version. I only see kindle version at Amazon. How can I buy a pdf version or paper version? I have been reading your blog for a long time and I appreciate your words of wisdom.

  4. Paolo Filippi 03/02/2011 at 3:07 AM #

    Thanks for your blog.
    Can you make your personal rank for the following books?

    i)Option Volatility & Pricing – Natenberg
    ii)Options: The Hidden Reality – Cottle
    iii)Options Volatility Trading – Warner
    iv)Trading Options in Turbulent Market
    v)Trading Options Greeks – Passarelli
    vi)Trading Options as Professional – Bittman

    In this list where you insert your “Lessons of a Lifetime” ?

    Thanks for your work and your blog


    • Mark D Wolfinger 03/02/2011 at 7:28 AM #


      Lessons of a Lifetime ranks last. It is not a trading book. It contains some personal recollections, but is primarily a discussion of things I’ve learned and some philosophy of trading.

      1) Natenberg tops the list. But it is NOT a beginner’s book.

      2) I have not read most of the books on the list

      3) Cottle is well accepted in the industry, but I find he writes about only one topic and approaches it from different points of view: He loves equivalent positions and I find his books limiting in scope

      4) Warner, Bittman, Passarelli each wrote a good book, but as the titles tell you, they look at different areas. Thus, rating and ranking them is near impossible. If volatility is of no interest to you, then Warner’s book will not satisfy. If you want to learn more about trading volatility then it will.

      Bittman’s books are well done. If you want to know more than the typical student learns, he delves further into idea that suit the full-time trader. I don’t know Dan P’s book, but the title tells me it’s worth reading.

      5) Shover’s (turbulent markets) is not for the beginner and is too limiting. I’d put that book is position vi.

      Sorry I cannot do a better review of these books

  5. Paolo Filippi 03/03/2011 at 8:16 AM #

    Hi Mark.
    Thanks for your reply.
    I’ m studing in depth the so called deltaneutral “Monthly Income Strategies”, in particular
    the setup of the Portfolio (IronCondor vs Double Calendar vs Ratio Diagonal Spread) and the Adjustment
    around the BreakEven points using the balancing of the Greeks (through the same figures).
    Can you suggest some books/links/materials on the subject?

    Thanks again


    • Mark D Wolfinger 03/03/2011 at 8:34 AM #

      Paolo: Next time, please comment on a page that others will see. A recent blog post, for example.

      There have been some recent books on the iron condor, for example. I am not familiar with them. I suggest starting with your local library. They may be willing to buy a book that you suggest. Otherwise, the best I can do is to suggest a Google search. Then you can search for reviews of any books that you discover.

      Sorry. I just don’t have the time to keep up with books in my field. Although it would probably be a good idea.

      Readers: any suggestions?


  6. Stewart 04/01/2011 at 10:41 AM #

    I would like to purchase Lesson of a Lifetime and just send in a check for the amount. I don’t want to put my credit card info. into the web site. Where can I send the ck. to. Thanks, J. Stewart

    • Mark D Wolfinger 04/01/2011 at 8:09 PM #

      Thanks. Information sent via e-mail.

  7. Lindsey 09/17/2012 at 6:17 AM #

    How can I obtain a copy of your book “Rookie’s Guide to Options” at the listed $34.95? The Amazon price is usually over $300 (been tracking for a month now) and the publisher is not selling them.

    • Mark D Wolfinger 09/17/2012 at 8:02 AM #


      To get the Rookie’s Guide to Options as an e-book (.pdf), send an e-mail to me at rookies (at) mdwoptions (dot) com.

      The paperback edition is unavailable because the publisher is in receivership (bankruptcy). When someone buys the business, the books should become available once again.


  8. Vinod 03/06/2013 at 2:18 AM #

    Hello Mr. Wolfinger,

    what is the difference between forecast volatility & implied volatility? is it that the term implied volatility is associated only with “Options” but the meaning is same as forecast volatility (type of volatility associated with stocks)?

    Thank you.

    In the options world, the two terms different.

    In the stock-trading world, I do not believe that either term is used. They sue the term beta to describe the relative volatility of a stock. i.e., they compare the PAST (not forecast, not future) volatility of one stock with that of a group of stocks (often S&P 500 Index).

    In the options world, forecast volatility is the consensus prediction for just how volatile the stock will be from RIGHT NOW until some time in the future. Normally that future date is a specific date on which options expire. The forecast volatility is for the underlying STOCK.

    Implied volatility is a term used for options, and NOT the underlying stock. The price of each option depends on many factors: stock price, dividend, time to expiration, strike price etc. Volatility is one of those factors. we take the factors – all of which are known (except that future volatility cannot be known, it can only be estimated) – and plug them into an options pricing model (Black-Scholes, for example). The price of the option is calculated.

    In the real world, the calculated price seldom equals the real market price. The implied volatility is simply this: If we use the implied volatility in the options-pricing model, then the market place of the option is the same as the calculated price. In other words, IV is the volatility estimate that makes the price of the option equal the real price, and not just a theoretical price. The period of time for which this estimate covers is: right now thru options expiration.

    To phrase it differently, the IV is the volatility that is ‘implied’ by the option price. The real market tells us that the volatility estimate for the stock ‘should be’ that IV in order for the forecast volatility of the stock to be accurate.

    • Vinod 03/06/2013 at 10:34 AM #

      Thanks for the explanation.

      on pg.218 of your book Rookies Guide to Options you’ve written “Options trade above fair value when the implied volatility of the options is higher than the forecast volatility for the stock” is there an easier way to calculate the forecast volatility? the GARCH & other methods I checked are too complicated, I’m completely new to all this, can I be helped? No websites provide this volatility for stocks trading in exchanges in my country.

      I have to clarify the quote from the book: When I meant to say is this:

      ‘Options trade above fair value when the implied volatility of the options TURNS OUT TO BE HIGHER than the forecast volatility for the stock.”

      In other words, the forecast volatility was too high and the stock was not as volatile as predicted. In turn that means that the implied volatility (which is based on the forecast volatility – market makers value the options based on supply and demand, but also on their expectations for how volatile the stock will be from now through expiration) was too high. In turn, that means that AFTER THE FACT, we can look back and state that the option prices were too high. However, we can never know that information soon enough to use it.

      My view is this: Because index options have been slightly over-priced for many years, the trader has a better chance of success by selling, rather than buying options. However, do not use that as a blanket statement. Selling options entails risk that some traders will not accept. That is the reason for (almost) never selling naked options. We always have to own options for protection and to limit losses.

      There is NO WAY to calculate forecast volatility.

      It is a prediction for the future.

      What most traders do is look at recent (few months) historical volatility for the stock, and unless there is some good reason for believing there was an aberration, they use that recent volatility as a reasonable guess for future volatility. Obviously when news is expected (earnings announcement), it is expected that the stock will be more volatile, and that makes sense. Predicting is a difficult game, best left to the experts.

      What I want readers to know is that it is not easy to know whether options are priced fairly or not. The best strategy is to assume they are reasonably priced most of the time (but not always). One reason for trading spreads is that the play is far less dependent on implied volatility being correct than when buying or selling a single option. The spread trade makes it less important to be concerned whether the options Are too expensive or relatively inexpensive. It still matters, but when we cannot make a good prediction about future volatility, it is better to trade a spread and be less exposed to being ‘wrong’ when we buy or sell options.

  9. John 05/14/2014 at 2:49 AM #

    Hi…….I purchased your book digitally through amazon. The book is very difficult to read in the format it was delivered. Sentences are broken in the middle of a page and completed further down the page. Footnotes appear at various points in a page often breaking up sentences. References are made to tables and or stocks that cannot be found.
    A couple of emails to amazon about these issues have gone unanswered.
    Very frustrating.


    I did not know that amazon was selling an eBook version.
    The problem with the Kindle is that they do not handle footnotes well. That is the reason why I never published this book in Kindle format.

    I do sell the FIRST EDITION as a eBook (.pdf), but it should not be available in Kindle format. If you reply to the email I sent, I will see that you receive a version in .pdf format. I assume (but am not certain) that you can read it on a Kindle, but if not, there are other devices that allow you to read it on your computer screen.

    I’m sorry this happened, but as I said, I did not know there was an eBook version. Can you send me a link to the amazon page that offers this book as an eBook?


  10. Paul Powell 09/10/2014 at 12:01 PM #

    Hello Mark,

    Do you sell The Rookie’s Guide to Options, 2nd edition (2013) direct or would you prefer I go to Amazon? I was about to spend $300+ dollars on a “Blue Print” for protective option strategies. However the over the top marketing hype raised my concern that the factual content might be over promised. I’d rather have the hard naked truth as my current goal is to grow and protect my stock holdings. Not sure if that goal will be the same after reading you book but I’d rather seek truth than presume answers.


    I don’t have a supply of books, so it is best if you get a copy at Amazon, or other bookseller.

  11. Tony 11/12/2014 at 8:45 PM #

    Hi Mark,

    I just finished reading your ebook volume 2 Iron Condors. I have questions on Chapter 14 Choosing the Spread Width. You explained the two 10-point iron condors (2 RUT 1070/1080 put spread) vs one 20-point iron condor (1 RUT 1070/1090 put spread) using equivalent position.

    1 RUT 1070/1090 put spread = 1 RUT 1070/1080 put spread + 1 RUT 1080/1090 put spread

    1070 : delta 13
    1080 : delta 15
    1090 : delta 18

    You explained that the 1080/1090 put spread is expected to be ITM at expiration about 18% of the time and the 1070/1080 put spread will be ITM about 15% of the time. Shouldn’t we look at the short put option delta instead of the long put option delta? That is to say, the 1080/1090 put spread is expected to be ITM at expiration about 15% of the time and the 1070/1080 put spread will be ITM about 13% of the time?

    Yes. We should look at the delta of the short option to determine the a priori probability that the spread will be ITM when expiration arrives. With the iron condor strategy, we SELL the call and put spreads. Thus, we SELL the 1090 put (18 delta) and BUY the 1080 put (15 delta). Thus the probability is that the 1090 put (and the 1080/1090 put spread) will be ITM is 18%.

    But if we are comparing two 10-point iron condors (2 RUT 1070/1080 put spread) vs one 20-point iron condor (1 RUT 1070/1090 put spread), both the short put option (1070) delta is the same, delta 13. So, using the equivalent position (which has two short options delta) to compare is not ‘equivalent’, isn’t it?

    The comparison with one 1070/1090 spread) does not involve using two 1070/1080 put spread. Instead, it uses ONE 1070/1080 spread and one 1080/1090 spread.

    The two 10-point iron condors (2 RUT 1070/1080 put spread) vs one 20-point iron condor (1 RUT 1070/1090 put spread) both will be ITM about 13% of the time. That spread (short 1080 put) will be ITM at expiration 15% of the time.

    In this chapter, you mentioned choose the narrower spread when possible. So, for RUT, is the 5-point iron condors better/preferred than the 10-point iron condors?

    In general, yes. However, there comes a point at which a spread can become too narrow. For example, for a $1,200 index, you would not want strike prices to be 10 cents apart. Trading 10-point spreads feels about right for me. However, if you like the idea of using 5-point spreads, then just do your self a favor. Compare the equivalent positions.

    Would you (for example) prefer to be short the 1080/1085 put spread or the 1085/1090 put spread. If there is a difference in your mind and if you truly prefer one over the other, then go ahead and sell two such 5-point spreads. However, if the two spreads appears to be essentially the same to you (in terms of risk/reward and probability of success) then you can save some commission dollars by selling only one of the 10-point spread (1080/1090 instead).

    As long as you recognize that either choice (two five-point spreads vs. one 10-point spread) provides the same risk (maximum loss) with similar, but not identical, reward potential — then you would probably want to own the position that feels more comfortable. If there is truly no comfort-zone difference, then I would go the the 10-point spread (because that is narrow enough for me. If you are more comfortable with 5-point spreads, there is nothing wrong with trading those).


    • Tony 11/14/2014 at 12:15 AM #

      Hi Mark,

      Thank you very much for your reply. I am terribly sorry for making so many typo and fundamental mistakes in my original comment. Yet, you still take the effort to reply. Really appreciate that.

      To avoid any confusion for other readers, allow me to correct my mistakes.

      The first mistake is the 10-point iron condors mentioned in the ebook is 2 RUT 1080/1090 put spread, not 2 RUT 1070/1080 put spread.

      The second mistake is I keep referring to the first strike price as the short option strike price. For example, the 1080/1090 put spread, the short option is 1090 put (which you corrected me), not the 1080 put I referred to.

      Once again, I apologize for the mistakes made.

      I still need some help on the equivalent positions comparison. Hope you could help.

      Using back the ebook example,
      Position A: 2 RUT 1080/1090 put spread
      Position B: 1 RUT 1070/1090 put spread
      Position B equivalent: 1 RUT 1070/1080 put spread + 1 RUT 1080/1090 put spread
      1070 : delta 13
      1080 : delta 15
      1090 : delta 18

      My first question is: the equivalent positions is just for discussion and comparison sake, right? It is not possible to have these two positions in your trading account. True. But the text in the book makes that very clear. We never actually buy both the 1070/1080 and the 1080/1090 put spreads because the 1080 puts cancel each other and we would be left with the 1070/1090 put spread. That would be a wast of money to pay twice as much in commissions plus to suffer the slippage that comes with buying and selling the same options for no good reason. So if you WANT TO SELL both of the 10-point spreads, you SELL the 20-point spread instead. That is ONE REASON why it is necessary to understand when two positions are equivalent. It can save money on commissions.

      When you sell 1 RUT 1070/1080 put spread + 1 RUT 1080/1090 put spread, the second short put spread will cancel the 1080 put option in your account, resulting only 1 RUT 1070/1090 put spread (20-point spread). Yes.

      Second question – the Comparison:
      1 RUT 1080/1090 put spread
      – risk: max possible loss = 10 points
      – delta 18 => 18% ITM => 82% probability of success Not exactly. This is the probability that the option will finish in the money. That is not the success rate for several reasons. I trust you can work out why that is true. If not, ask.
      – should be slightly higher premium

      1 RUT 1070/1080 put spread
      – risk: max possible loss = 10 points
      – delta 15 => 15% ITM => 85% probability of success
      – should be slightly lower premium

      Since 1080/1090 put spread has a lower probability of success (which means higher risk of failure), I should expected a higher premium than 1070/1080 put spread. Yes/ Obviously true. With 3% lower probability of success (3% higher risk of failure), I expect, say $0.30 more (arbitrary number). This is unreasonable. So much of the difference depends on other factors – primarily how far OTM the options are and the implied volatility.

      So, if 1080/1090 is sold at $3.00, then 1070/1080 could be sold at $2.70. We can say that the two spreads appears to be essentially the same. It is better to sell the 20-point spread.

      However, if 1080/1090 is sold at $3.00 but 1070/1080 could be sold at $2.95, with 3% more risk of failure from 1080/1090 put spread, I am just getting $0.05 more. The two spreads do not appear to be essentially the same. The 1070/1080 put spread appears more attractive. I get 3% more on the probability of success (3% lower risk of failure) by giving up $0.05. Then, it is better to sell two 1070/1080 put spread (10-point spread).

      Is this understanding of equivalent position comparison correct?
      NO. You are confusing things. When two positions are equivalent, they are equivalent. Period. there are no comparisons to make, other than the premium you can receive for the trade.

      But, what we are discussing is whether to sell the 20-point 1070/1090 spread or whether to sell twice as many of ONE of the 10-point spreads. When comparing these two trades, they are not equivalent. You would choose to sell only the `10-point spread when you like one of the spreads better than the other. When it truly does not make any significant difference which of the two 10-point spreads to sell, that is when you should sell the 20-point spread instead (because that is the same as selling an equal quantity of EACH of the 10-point spreads.”

      Question: How much experience do you have trading iron condors? If this is a new game for you, then this is not a topic of major priority. You need good experience before you can judge what makes one spread better than another. Sure, the 30-cent vs. 5 cent difference makes sense, but where do you draw the line: 10-cents? 15-cents?…

      Also this: The “success rate” as you describe it is not really significant. Many times you would be forced to exit the iron condor just because risk has increased to an uncomfortable level, and the probability of “finishing in the money at expiration” completely ignores those probabilities.


      • Tony 11/26/2014 at 9:39 PM #

        Hi Mark,

        Thanks again for your reply.

        Yes, I was confusing things when I used the term “equivalent position comparison”. You are right that when two positions are equivalent, they are equivalent. Period.

        What I was trying to find out is from the comparison of the two 10-point spreads, how do we determine they are any significant difference between them.

        Using back the example, 1080/1090 put spread and 1070/1080 put spread.

        Obviously, there are differences in these two spreads. To start with, the delta (probability ITM at expiration) are different. Thus, we can expect the premium will be different. 1080/1090 spread having higher delta (thus, higher risk that it will be ITM at expiration) will have higher premium than 1070/1080 spread.

        If the premium of the two spreads are the same, I will choose the farther out of the money spread (1070/1080). I would hope so! You will not find this occurs very often. The options would have to be quite far OTM

        So, do I (should I) use the premium difference as the determining factor? But, like you said, where do you draw the line?There is no correct answer to this dilemma. I suggest using your comfort zone by asking this question: “Would i feel better going after the small extra premium and accepting the slightly higher risk that an adjustment will be necessary during the lifetime of the trade, or would I rather accept a slightly smaller premium in return for a slightly better chance that no adjustment will be necessary? The reply will vary from trade to trade because of market conditions, premium level (it is difficult to take a tiny premium and unwise to go too close to the money with your short options. In other words, there is no “correct” answer.

        If not, what else should I be looking at to determine “when it truly does not make any significant difference which of the two 10-point spreads to sell”? There is always some difference. But if you cannot decide which is better, then you should assume that it makes no significant difference which you choose. That is the appropriate time to trade one half as many of the wider spread.

        I have slightly more than 1 year of full time option trading on Nikkei 225 (N225) and KOSPI 200 (K200) index option. For Nikkei 225, I have been selling 250 point spread (smallest is 125 point, with 125 point increment). For K200, I have been selling 2.5 point spread (2.5 is the smallest spread). That is enough for you to be able to work out just how you feel about the trade. Don’t make a trade that makes you nervous. Don’t increase position size just because the premium is small. Do know in advance at what price for the index you would want to adjust (or exit) the position.

        Just want to let you know your ebook volume 2 Iron Condors has benefited me a lot. For a start, it makes me rethink on all the nuts & bolts of my Iron Condors trading plan. Thank you.

        Looking forward to your next ebook volume 3. Not certain that I will do more, although I would like to do so

  12. Tony 01/08/2015 at 7:41 PM #

    Hi Mark,

    I have some questions on Chapter 3 Thought #3: The Iron Condor is one position.

    You mentioned that the Iron Condor is one, and only one, position. The problem of thinking it as two credit spreads is that it often results in poor risk-management.

    Using a similar example (i modify a little bit) in the book, traded one Iron Condor at $2.30 with 5 weeks to expiration:
    – Sold one call spread at $1.20
    – Sold one put spread at $1.10

    Say, a few days later, the underlying index move higher, the Iron Condor position is at $2.50 (paper loss of $0.20):
    – call spread at $2.00 (paper loss of $0.80)
    – put spread at $0.50 (paper profit of $0.60)

    I will lock in the put spread of $0.60 for the following reasons and conditions:
    1. it is only a few days, the profit is more than 50% of the maximum possible profit
    2. there are still 4 more weeks to expiration to gain the remaining less than 50% maximum possible profit. in fact, the remaining profit is less as I will always exit before expiration, typically at 80% of the maximum possible profit. so, there is only less than 30% of the maximum possible profit that I am risking for another 4 more weeks.
    3. the hedging effect of put spread against the call spread is no longer as effective because the put spread is only at $0.50. as the underlying move higher, the call spread will gain value much faster than the put spread will loss value.

    Is the above reasoning under those conditions ok? Will appreciate your view and sharing. Thank you.

  13. Owen Howell 06/20/2015 at 7:19 PM #

    Hi Mark, I have recently bought and am enjoying your Writing naked puts and have questions please.
    1. You talk about April 27 1/2 put …..what is a half put ?
    2. If this book is Volume 1 is there a Volume 2 ?

    Many thanks


    Hi Owen,

    There is no one-half of an option. The strike price is $27.50.
    Sorry for the confusion.

  14. Owen Howell 06/20/2015 at 7:20 PM #

    Hi Mark, I see now that Volume 2 is Iron Condors.