McMillan on Options


  • Pages: 668
  • Format: PDF
  • Published Date: 2004


The object of McMillan on Options is to explore some of the many ways in which options can be used and to give practical demonstrations that will help the reader make money.


As for content, the book is basically divided into five major sections, spread out over seven rather lengthy chapters. The first part Chapters 1 and 2—lays out the basic definitions and reviews option strategies, so that the framework is in place to understand and utilize the material in succeeding chapters.

Even seasoned option professionals should enjoy reading these introductory chapters, for the trading tales that accompany many of the strategies are sure to elicit some nodding of heads. Graphs and charts are liberally used. Since things are more easily seen in graphs than in tables, over 120 such graphs and charts are included in this book.

Chapter 3 contains material that is extremely important to all traders—particularly stock traders, although futures traders will certainly benefit as well. Chapter 4 is “The Predictive Power of Options.” Since options offer leverage, they are a popular trading vehicle for all manner of speculators.By observing both option prices and option volume, you can draw many important conclusions regarding the forthcoming direction of stocks and futures.

Several trading systems—from day-trading to seasonal patterns— with profitable track records are described in Chapter 5. The intent of Chapter 6 is to not only set the record straight, but to demonstrate that—while neutral trading can certainly be profitable— it is not the easy-money, no-work technique that some proponents seem to be extolling.

Chapter 6 is intended to be almost a diary of what he was thinking and how he traded the position over the course of six months. The book winds up with a discussion of money management, trading philosophy, and some trading guidelines—all in Chapter 7.


  • Option History, Definitions, and Terms
  • An Overview of Option Strategies
  • The Versatile Option
  • The Predictive Power of Options
  • Trading Systems and Strategies
  • Trading Volatility and Other Theoretical Approaches
  • Other Important Considerations