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Another trader who teaches/uses options is Archie Johnson (www.VTuniversity.com)---in a nutshell,he likes to purchase options that are in a low volatility area within the last 2 years----buy low volatility and sell high volatility---and if things don't go as one had planned,close the trade out at a 50%loss....Archie, as many do,like Shelly Natenberg's book.If I may add,the late Bruce Babcock(Commodity Traders consumer's reports) felt that it's tough to succeed as an options buyer since you are playing against professionals who sell them to you and try to outsmart you at the same time by filling our orders so that any volatilty based advantage is effectively diminished as you are at their mercy.HOWEVER,successful option traders say that there are ways to combat this--for example,in doing a spread order,first get the bid-ask spread from the floor or place the order as a limit order thereby not letting the floor pros take unneccesary advantage of you. I don't know what William Eng's work is like,but he does have books on options,futures stocks,etc... Lastly,if you can trade like a contrarian in purchasing options,you may be better off(use leading anticipating indicators for example(RSI...) I personally think options are great as hedges against an adverse move against your position in the underlying future or stock. Len.
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