Book Review: Get Rich With Options
I can remember the moment when I first picked up this book in my hand.
I remember it so well because I walked out of the book store feeling like I had just been clocked up side the head with a sledgehammer. You see, I was at a point in my trading where I had been pretty successful. I was making money in the market consistently. But for some reason I was beginning to wonder if this really is the best way to trade, and I was starting to look at other things. This book was a much needed whack in the head and pointed out so clearly where my focus needed to be, it was like seeing it written in the clouds.
If you are at that same point as an options trader, Get Rich with Options by Lee Lowell is a must read.
To be honest, Lee’s book isn’t new, but it is packed full of wisdom that is worth more than gold. His laymen’s terms and style of writing was so clear and understandable, it was like he was talking directly to me.
Lee’s credentials speak for themselves. He has spent 15 years in the trenches as an options trader. He started working on the floor of the New York Mercantile Exchange (NYMEX). Then after learning how the real Market Makers rake in one fist full of cash after another, he ventured out on his own and opened up his own investment firm. He tells his story in a the book in a chapter called, “A Day in the Life of the Market Maker.” I don’t want to give too much more away.
Get Rich with Options is divided into 3 Separate parts.
In the first part, he gives a background on what options are. He goes in depth into topics such as:
- The basic difference between a call and put
- How options are priced and why it matters
- Option Volatility and how understanding it can increase your profit margins.
- An introduction to The Greeks – He shows how traders, often over-complicate their relevance… and gives which ones he really pays close attention to.
- Why selling options is the key to long term success for any trader
Part 2 is my favorite. He starts off explaining a few different options selling strategies. These may be helpful for you, particularly if you have a stock portfolio you are looking to maximize.
The best chapter is Chapter 8. I am probably majorly biased, because this chapter talks about the strategy I use every single day to bring in cash to pay my monthly expenses. He talks about Credit Spreads. From the sound of it, Lee is pretty high on it too. He says this on page 115,
“I can’t say enough good things about the option credit spreads. I feel so strongly about this method that I’m willing to use it with almost ever trade…. Option credit spreads can give you the best of all worlds when taking a position.”
If you are a member of my All Star Membership site and have gone through my course Credit Spread Trading Made Simple, much of this content will be review, however I still think it is a great idea for you to read it. You can never get enough of this stuff. He talks about the overall goal of credit spreads, risk management, and indicators. But perhaps the most helpful component of this chapter is the numerous historical examples he gives of successful trades he has taken in the past (complete with charts, trendlines, and entry/exit points). Even though many of these examples were trades in the commodities market, the overall strategy still remains the same.
Finally, in Part 3, Lee gives some specific tools that traders can go to expand their knowledge and expertise. In this section, he dedicates an entire chapter to brokers and commissions. If you have ever questioned whether or not you are paying too much… and exactly where that commission money is going… this chapter answers those questions.
I will warn you… If you take my advice and pick up a copy of this book, you may actually experience your own “Sledgehammer Moment”. Don’t be afraid of it, because that is when everything will become so clear.
A huge piece of becoming successful is studying and learning from people that have dedicated their lives to achieving it. People just like Lee Lowell. Do yourself a favor and pick up a copy of Get Rich with Options.
Now, here is what you want you to do. If you have read this book already, leave a comment below and let me know what you thought. If not, first let me know if you have ever experienced that “Sledgehammer Moment” like I did. Then go buy the book.
And by the way, if you want my opinion on the Superbowl on Sunday… Colts over the Saints!
Have a great weekend,
Jeff
11 Responses to “Book Review: Get Rich With Options”
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i agree with jeff’s review of this book. after getting the course it was recomended in the manual to grab this book in order to enhance your option knowledge. i did and went through it quite easily even though i knew very little about options. i have been meaning to re-read this book for several months and may actually be motivated by this post to do that this weekend. the other book recomended “options made easy” i found a little disjointed and harder to follow. still find the best content on jeff’s site however.
Jeff – I agree that selling is the way to go, however, every credit spread I ever tried turns against you and has cost me money – just cannot see this strategy.
Hi Joe, I know what it feels like to have a trade go against me. The key for me is probabilities. I know before I even go into a trade EXACTLY what my probability for success is…. I wouldn’t consider trading credit spreads without probabilities.
Excellent book! It introduces the many potential benefits of options. But after reading the book, I knew I needed a mentor or coach to help me along; put the two together and you’ve got a knock-out punch.
Jeff,
About 6 months ago I read Getting Rich with Options and really liked the concept of credit spreads.
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Hi Jeff. Would you recommend this read to a totally new with no knowledge of options much less credit spreads? Or is there a suggested “beginners” read instead? Thanks.
Hey Steve…Get the book…You will not be disappointed. Also any book that will train your eyes to read stock charts would be beneficial.
JZ
Hello Ebonie,
Thank You!
JZ
Jeff,
I completely agree: it’s a must-read book! When he is explaining all things about options, I really did feel like he was speaking to me! It really pumped me up and motivated me to go through your manual first and then the dvds.
A great book, I have it and I loved it. It’s very easy to follow, very relaxed, and it feels like he’s talking to you, doesn’t talk about weird risk profile charts, etc. I love the Credit Spread strategy, but whenever I try it with stocks, my break even is too close. When I sell so far out of the money, it’s too cheap to make significant amount of money, unless I buy a lot of contracts and risk a lot of money. Another question that I’ve come across that most people don’t answer is, can I unwind the trade whenever I want? (Stop loss, profit taking) Or do I have to wait for expiration? If I’m getting credit into my account, and because of time decay I make a small percent of it let’s say in 3 days, can I unwind and take my small profit? I just found out about Jeff Ziegler and I’m already a fan! I’m considering signing up for your website.