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Goldman Sachs’ Favorite Books List – Options/Derivatives

Goldman Sachs’ Favorite Books List

Goldman Sachs put together a list of the best books and it is impressive and long – unfortunately it is hard to sift through since it just has the title and the author without any information on the book so we are helping you out by filing in that info. If you want to find the full list go here we also list it below at the bottom along with descriptions. Note: we do not endorse the short term trading strategies (well we really do not officially endorse anything) but to keep the list complete we have included all descriptions of books below. Because this is lengthy we will be breaking them up by section so stay tuned for more!- which brings to Industry Background and Flavor – there are some real classics in here and a few lesser known names and many of the books only cost a few pennies from Amazon and even with shipping will cost you less than $5 TOTAL, a bunch only cost a penny plus a few dollars shipping – so make sure to check them out!! WARNING : Goldman says before introing these books:

The following popular works are, of course, exaggerated depictions of the darker side of the industry. However, they do provide some of the flavor of life on “The Street.”

Also see Bill Gates: 5 Books To Read This Summer

Also see Written About, By or For Money Managers and Traders -> here

Also see Goldman Sachs’ Recommended Reading List – Industry Background and Flavor Part I

Goldman Sachs’ Recommended Reading List – Industry Background and Flavor Part II

Goldman Sachs reading list sections

Written About, By or For Money Managers and Traders

Industry Background and Flavor

Broad Industry History

Analytical and Reference

Periodicals

  • Wall Street Journal (daily, Monday through Friday)
  • Barron’s (weekly publication)

General

IMD

FICC & Equities

Options/Derivatives

Goldman Sachs’ Favorite Books List – Options/Derivatives

How I Trade Options by Jon Najarian

Wiley Online Trading For A Living

Beat Risk and Reap Rewards Like A Pro!

The Compelling True Story of How a Top Market Maker Built a Successful Trading Business

Praise for How I Trade Options

“To much of the outside world, trading appears to be as incomprehensible as rocket science. What Jon Najarian has done in this engaging and very readable book is to ‘demystify’ the world of options for both the aspiring trader and the retail investor. How I Trade Options is a rare opportunity to look over the shoulder of this experienced options trader, teacher, and lecturer.” -Lewis J. Borsellino, CEO/Founder, www.TeachTrade.Com; Author, The Day Trader: From the Pit to the PC

“How I Trade Options gives retail investors who have little or no prior knowledge the insight into how options work and how to use them effectively and responsibly. For those who want to learn about options, this is a rare opportunity to learn from a master trader. Najarian shows commitment to educating investors on the use of options to enhance their portfolios.” -Rance Masheck, President, Quantum Vision Inc.

“Not only is Jon Najarian a Supertrader, he is a Superteacher. I owe much of my good fortune to Jon Najarian. I learned more from him than I had learned in an entire decade-plus it was fun! Jon’s abilities to make his profitable trading strategies understandable are sure to make How I Trade Options a must-have tool that every option trader will want to own.” -Don Fishback, Developer of the Fishback Option Pricing Model

“Jon Najarian is a world-class options trader and a world class options educator. His crystal clear explanations of such strategies as vertical spreads empower the average investor to participate in attractive options approaches that, until now, have been dominated by professional traders.” -Bernie Schaeffer, Chairman and Chief Executive Officer Schaeffer’s Investment Research, Inc.

Reviews – From the Inside Flap

When Jon Najarian embarked on a career in the world of market making, he went from playing with the Bears to running with the bulls. In this chronicle of his trading evolution, the former middle linebacker for the Chicago Bears focuses on the key ingredient for his market success-learning to control risk.

From achieving speedy victory to coping with some enormous losses to building his own business, Najarian reveals here how he successfully trades the market with options traders, showing investors how to trade like the pros by:

  • Honing self-discipline
  • Handling volatility successfully
  • Grasping puts, calls, and spreads
  • Seizing opportunities and adapting strategies to changing times

Looking to Najarian’s compelling personal-and highly educational-story as an example, stock, futures, options, and bond traders, as well as individual investors, will learn to limit risks, be aware of and avoid potential pitfalls-and trade options like a market maker.

Options as a Strategic Investment by Lawrence McMillan

The market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments. This updated and revised Fifth Edition of the bestselling Options as a Strategic Investment gives you the latest market-tested tools for improving the earnings potential of your portfolio while reducing downside risk—no matter how the market is performing.

Inside this revised edition are scores of proven techniques and business-tested tactics for investing in many of the innovative new options products available. You will find:

  • Buy and sell strategies for Long Term Equity Anticipation Securities (LEAPS)
  • A thorough analysis of neutral trading, how it works, and various ways it can improve readers’ overall profit picture
  • Detailed guidance for investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and how to hedge them with common and regular options
  • An extensive overview of futures and futures options

Written especially for investors who have some familiarity with the option market, this comprehensive reference also shows you the concepts and applications of various option strategies — how they work, in which situations, and why; techniques for using index options and futures to protect one’s portfolio and improve one’s return; and the implications of the tax laws for option writers, including allowable long-term gains and losses. Detailed examples, exhibits, and checklists show you the power of each strategy under carefully described market conditions.

Options:Essential Concepts by The Options Institute

Get the acknowledged industry classic – revised and updated to deliver everything from time-honored options concepts to strategies for individual and institutional investors and traders. Every stock trader or market maker, whether currently involved with options or not, should own OPTIONS: ESSENTIAL CONCEPTS AND TRADING STRATEGIES, THIRD EDITION. Written by today’s leading options practitioners – and edited by The Options Institute, the globally renowned Educational Division of the Chicago Board Options Exchange – OPTIONS leaves no stone unturned in delivering the most complete, authoritative, and easy-to-understand blueprint available for navigating the profitable twists and turns of today’s options marketplace. No-nonsense, packed with useful information, and valuable as either an introductory textbook or a comprehensive fingertip reference source, this thoroughly revised and updated edition details: What options are, how they are priced, and how they are traded; Basic option trading strategies such as covered writing and protective puts; Advanced strategies involving LEAPS and the stock repair strategy; Options from three points of view: private investor, institutional investor, and market maker; How to use the power of the Internet for trading and detailed information gathering. The well-organized, thought-provoking, and dependable ideas found here will help you use options to increase the returns in virtually any investment mix. The comprehensive answers to a wide range of options questions, as well as insights into the latest options trading strategies, cover: Option Market History –  From early transactions to latter-day innovations including LEAPS and index options, knowledge of options industry history will help you intuitively understand and trade profitably today; Essential Concepts – Fundamentals of options pricing theory and their relationship to market prediction, stock selection, and risk management; volatility explained; and introductory strategies from long call to covered strangle;. Investing and Trading Strategies – Discussions of how to approach and understand “investing” strategies that focus on ownership of an underlying equity versus “trading”. . strategies with no intent to hold the underlying stock; plus, the function of market makers ; Real-Time Applications – Institutional case studies; how to use options as an indicator of price moves for an underlying stock; using the Internet for instantaneous trades and information; plus, a comprehensive glossary of option market terminology. . OPTIONS, THIRD EDITION, takes the guesswork out of trading options and gives you the information you need to become a savvy options trader. So get your questions together, and use this step-by-step guidebook to develop option strategies that meet your investment objectives: hedging your stock market risk, increasing your portfolio income, or improving your trading results.

Options For The Stock Investor: How Any Investor Can Use Options to Enhance and Protect their Return by James B. Bittman

Options for the Stock Investor thoroughly explains how to use stock options safely and effectively. James Bittman demonstrates how to integrate options into a long-term investment program explaining in a clear and simple language time-proven strategies that will add value to any investor’s portfolio. He recommends specific strategies for investors with various risk tolerances and investment goals. Authoritative and enlightening, this book is complete with tests and a graphic summary of option strategies.

For individual investors seeking to profit with options, Options for the Stock Investor is an invaluable resource. Specific topics include:

  • The mechanics of basic option strategies
  • Understanding option price behavior
  • Selling options on the stocks you own
  • Using options to achieve your long-term investment goals
  • Option strategies for both newcomers and veterans

Trading Index Options by James B. Bittman

Designed and written for active traders who are interested in practical information that can improve their results, Trading Index Options offers tried-and-true techniques without a lot of theory and math. Bittman provides traders with the know-how to evaluate practical situations and manage positions. Among the key features: the basics of index options, including various spreads; how to match strategies with forecasts; alternatives for losing positions; the importance of price behavior and volatility. A windows-based software program that provides multiple option pricing and graphing is included in the package.

Reviews  – From the Back Cover

Leverage Strategies to Make High-Volatility Markets Work For You! Today’s volatile markets are ideal for profitable index option trading. Trading Index Options was written for active traders-spectators who need to see every trade from every angle-and contains market-tested strategies from one of today’s leading options educators and traders. With ready-to-use, battle-tested information on virtually every page, this amazing book: Explains how toption prices behave, letting you stay focused on market activity. Provides proven techniques to understand risk and limit your exposure.

Shows how to take advantage of index options’ unique flexibility. Covers trading psychology-how to think and trade with discipline. Presents strategies from basic to complex-buying, selling, spreads, straddles and more (with case studies to demonstrate each). And because today’s fast-moving markets require instant calculations and adjustments, the easy-to-use OP-EVAL3 option pricing and strategy graphing computer program lets you analyze option prices, set profit target, implement trading decisions, and of critical importance, monitor multiple positions simultaneously.

No other trader’s program can match its speed and versatility! Short on hard-to-comprehend mathematics and long on tried-and-true tactics and strategies, Trading Index Options is fast becoming the bible for index option mastery.

All About Options: The Easy Way to Get Started by Thomas A. McCafferty

Discover the Potential of Options for Managing Risk, Profiting from Bull or Bear Markets, and Leveraging Your Investments

Thousands of individual traders and investors used the first two editions of Tom McCafferty’s All About Options to master every aspect of the options market_and develop strategies for making winning investments.

Now revised and updated, the Third Edition of this best-selling guide provides a clear, no-nonsense explanation of the risks and rewards of using options, ranging from options basics to hedging and speculating to options pricing.

This new edition of All About Options covers the dramatic changes in technology, world finance, and market conditions that have take place in recent years.

How the Options Markets Work by Joseph A. Walker

Designed to serve as a convenient source of basic information about options, one of the most misunderstood products in the investment world, this handbook offers the reader a practical explanation of how the option market works, covering equity options, index options, foreign currency options, interest rate options. It aims to give comprehensive guidance on the subject, concentrating principally on equity options, one of the most important – and popular – options instruments.

Mastering Derivatives Markets: A step-by-step guide to the products, applications and risks by Francesca Taylor

“The first port of call for anyone looking to truly understand derivatives markets, appreciate the role they play within the global financial system and develop the technical knowledge to trade.”
Matthew Thompson, Chief Strategy & Business Development Officer, Dubai Mercantile Exchange

“An essential read for anyone serious about understanding the impact of derivatives and technology on the global financial market.”
Kevin Thorogood, Global Head, Investment Banking/Energy Trading, Thunderhead Ltd

“We have used Francesca for training on derivatives in the past. She demonstrates a passion for these markets and for learning. In a fast changing world, the combination of technical learning and practical experience that Francesca applies is helpful in keeping abreast of market developments.”
Rachael Hoey, Director, Business Development, CLS

Your Essential Companion To The Derivatives Markets

Mastering Derivatives Markets provides full up-to-the-minute explanations — with worked examples and screen shots — covering the basics of options, swaps and futures across the key asset classes: rates, currency, equity, commodity and credit.

This book is relevant to anyone working within the financial markets, from the new entrant to the seasoned trader looking for updates, and to non-trading personnel working in IT, legal, compliance, risk, credit and operations.

Please note that the ‘look inside’ feature is currently displaying the content of Mastering Derivatives Markets Third Edition, this will be updated soon.

Mastering Derivatives Markets Fourth Edition has been completely revised and features new chapters on:

  • The most up to date thinking in the market
  • OTC clearing
  • Regulation
  • Benchmarking
  • Electronic futures trading in the FX market
  • New insights into the commodities markets
  • Carbon trading and environmental products

Review

“An invaluable and straightforward guide, full of practical applications.” David Ford, Training & Development, International Petroleum Exchange “Another valuable step on the road to improving competence and confidence in the world of financial derivatives.” Paul Dex, International Sales Manager, LIFFE “A vital book for every new entrant into the market.” Christopher Bellew, Director, Prudential-Bache International Ltd “Contains just about everything you might ever want to know concerning the derivatives markets… a well written book about a difficult subject.” The Trader’s Magazine “We run a number of courses on financial products and this book serves as excellent pre-course reading as well as an everyday reference handbook.” Maricar Obieta, Vice President, GCIB, Citibank, NA “As professional market-makers we have found this an invaluable, easy-to-read book. We always have a copy to hand for quick reference.” Andrew Holdstock, Director of Foreign Exchange, IG Group Plc –This text refers to an out of print or unavailable edition of this title.

From the Back Cover

“The first port of call for anyone looking to truly understand derivatives markets, appreciate the role they play within the global financial system and develop the technical knowledge to trade.”
Matthew Thompson, Chief Strategy & Business Development Officer, Dubai Mercantile Exchange

“An essential read for anyone serious about understanding the impact of derivatives and technology on the global financial market.”
Kevin Thorogood, Global Head, Investment Banking/Energy Trading, Thunderhead Ltd

“We have used Francesca for training on derivatives in the past. She demonstrates a passion for these markets and for learning. In a fast changing world, the combination of technical learning and practical experience that Francesca applies is helpful in keeping abreast of market developments.”
Rachael Hoey, Director, Business Development, CLS

McMillan on Options by Lawrence G. McMillan

Legendary trader Larry McMillan does it-again-offering his personal options strategies for consistently enhancing trading profits

Larry McMillan’s name is virtually synonymous with options. This “Trader’s Hall of Fame” recipient first shared his personal options strategies and techniques in the original McMillan on Options. Now, in a revised and Second Edition, this indispensable guide to the world of options addresses a myriad of new techniques and methods needed for profiting consistently in today’s fast-paced investment arena. This thoroughly new Second Edition features updates in almost every chapter as well as enhanced coverage of many new and increasingly popular products. It also offers McMillan’s personal philosophy on options, and reveals many of his previously unpublished personal insights. Readers will soon discover why Yale Hirsch of the Stock Trader’s Almanac says, “McMillan is an options guru par excellence.”

Reviews – From the Publisher

Thousands of investors turn to Larry McMillan, leading finance writer and advisor, for expert advice on options. In this reader-friendly book, McMillan offers the latest information on the high-profit world of options trading. This up-to-date guide provides an information-hungry marketplace with in-depth coverage of pricing strategies, volatility and risk control, hedging techniques and option philosophy, as well as key insights into the predictive power of options, the versatile option and buying and selling. Real-world examples provide hands-on applications and clear illustrations to turn theory into practice. –This text refers to an out of print or unavailable edition of this title.

From the Inside Flap

The McMillan name is virtually synonymous with options. Over the years, this legendary trader’s popular and informative books, newsletters, and seminars have helped both new and seasoned investors use options to consistently enhance their trading profits.

McMillan first shared his personal options philosophies and techniques in the original McMillan on Options. Now, in this revised and expanded Second Edition, he reveals a number of new approaches for success in today’s fast-paced and ever-changing investment arena.

By exploring both the flexibility and predictive ability of options, this highly revised resource will show you the best new ways to apply options to everyday trading situations. You’ll quickly learn how to establish self-contained strategies, substitute options for other financial instruments, and protect your positions–whether in stock, index, or future options. More importantly though, you’ll receive a complete education in the exciting new products that are popular with investors, from single-stock futures and exchange-traded funds to LEAPS and the brand new volatility futures.

Backed by over 100 case studies, updated charts, and new examples, McMillan on Options, Second Edition:

  • Illustrates how a stock can be “pinned” to a striking price at expiration, what causes it, and when to expect it
  • Discusses put-call ratio charts and theory on individual stocks
  • Examines how to use volatility indices as an accurate market predictor
  • Adapts trading systems and strategies–such as intermarket spreads and seasonal trading systems–to the realities of a new market environment
  • Presents advanced approaches to options trading, including the concepts of expected return and Monte Carlo probability simulation
  • Offers guidance for those who need to find reliable options trading data and tools online

This timely Second Edition also expands on discussions regarding the NYSE as a faulty indicator, the history of market volatility, and the importance of buying and selling volatility.

Readers can now gain a unique insight into McMillan’s personal philosophy on options, and discover the innovative new tactics and strategies he applies to his own trading and analysis. Packed with hands-on examples and techniques that address hedging and volatility–plus fresh new pricing concepts–this comprehensive and updated work will help you understand and unleash the full power of options.

New Financial Instruments by Julian Walmsley

In the beginning, there were four financial instruments: a bank deposit, a bill of exchange, a bond, and an equity. Today, as a result of a steady stream of financial innovations, the market landscape is far less sparse-and far more complex. To help you maneuver smoothly and profitably within this crowded and much-evolved arena, Julian Walmsley’s New Financial Instruments has been thoroughly revised and expanded to include complete coverage of all the new financial instruments available to market practitioners.

New Financial Instruments, Second Edition offers a clear, practical perspective on the shifts and changes behind today’s dizzying proliferation of market tools and techniques. Its in-depth examination of both international and domestic markets probes the nature, causes, and consequences of financial innovation, as well as the ins and outs, advantages and disadvantages of the myriad products engendered by change.

New Financial Instruments, Second Edition is a comprehensive, comparative guide offering concise descriptions of convertibles, warrants, preferred stocks, and other instruments. In addition, Walmsley’s clear-eyed analysis distills the latest variations in areas such as barrier options, asset-backed securities, credit derivatives, structured notes, and equity derivatives. There’s important information on the origin and methodology of each innovative technique, as well as essential details on the risks, rewards, and key considerations that must be understood before deciding on one instrument over another.

New Financial Instruments, Second Edition takes you step-by-step through a wide range of procedures, revealing how to:

  • Analyze risk level and return
  • Use interest rates and currency swaps in synthetic securities
  • Value exotic options, weighing the risks they entail against the leverage they provide

The book also addresses such key topics as:

  • Basic analytical tools-present value calculations, zero-coupon curves, modern portfolio theory, value at risk, continuous compounding
  • Securitization-transferable loan instruments, Eurocommercial paper, and asset-backed securities
  • Swaps-interest rate, currency, diff, zero coupon, asset, and equity
  • Options-barrier, binary, cliquet, ladder, rainbow, shout
  • Mortgage-backed securities-market development, superfloaters and inverse superfloaters, PAC bonds, reverse PACs and lockouts, TAC bonds

Supported by extensive illustrations and working examples, this indispensable resource is a must for anyone seeking to understand and apply the latest financial innovations.

A comprehensive guide to today’s new financial instruments-what they are, how they work, and how you can profit from them

Written by an expert practitioner in the field, this up-to-date, systematic guide takes you through the ins and outs, advantages and disadvantages, risks and rewards of today’s sophisticated new financial tools and techniques. Now revised and expanded, New Financial Instruments has complete coverage of bonds, equities, warrants, and other traditional vehicles, as well as a comprehensive overview of the latest developments in asset- and mortgage-backed securities, credit and equity derivatives, convertibles, and preferred stocks.

“With the flood of innovations we have seen in international finance in recent years there was a great need for a succinct, comprehensive survey of the field. New Financial Instruments fills that need admirably.”-Professor Brian Scott-Quinn, ISMA Centre, University of Reading, U.K.

(www.ismacentre.rdg.ac.uk)

“For the practitioner to keep up with innovations across a wide range of markets is always difficult. This book will be a great help to those who need to bring themselves up to date with a great variety of markets.”-John Langton, Chief Executive, International Securities Market Association, Zurich

Options, Futures and Other Derivatives by John C. Hull

For graduate courses in business, economics, financial mathematics, and financial engineering; for advanced undergraduate courses with students who have good quantitative skills; and for practitioners involved in derivatives markets

 

Practitioners refer to it as “the bible;” in the university and college marketplace it’s the best seller; and now it’s been revised and updated to cover the industry’s hottest topics and the most up-to-date material on new regulations. Options, Futures, and Other Derivatives by John C. Hull bridges the gap between theory and practice by providing a current look at the industry, a careful balance of mathematical sophistication, and an outstanding ancillary package that makes it accessible to a wide audience. Through its coverage of important topics such as the securitization and the credit crisis, the overnight indexed swap, the Black-Scholes-Merton formulas, and the way commodity prices are modeled and commodity derivatives valued, it helps students and practitioners alike keep up with the fast pace of change in today’s derivatives markets.

 

This program provides a better teaching and learning experience—for you and your students. Here’s how:

  • NEW! Available with a new version of DerivaGem software—including two Excel applications, the Options Calculator and the Applications Builder
  • Bridges the gap between theory and practice—a best-selling college text, and considered “the bible” by practitioners, it provides the latest information in the industry
  • Provides the right balance of mathematical sophistication—careful attention to mathematics and notation
  • Offers outstanding ancillaries toround out the high quality of the teaching and learning package
Goldman Sachs' Favorite Books List - Options/Derivatives
Source: Pixabay

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