by Bill Kraft
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Product Description
Successful trader and advisor Bill Kraft shows how to trade the financial markets in a way that limits risk and provides the potential for big profits. Kraft, who left a successful law practice to become an independent trader, explains his own educational process and how he arrived at a trading approach that primarily uses options to generate consistent income, limit risk, and participate in big market moves. In simple and down-to-earth language, Kraft explains a variety of strategies including buying and selling options; covered call writing; collars; using closed end mutual funds for income; debit spreads, volatility-based straddles; ratio backspreads; condors; and calendar spreads. Kraft emphasizes that traders need to first develop a sound and reasonable business plan – in the same manner that any entrepreneur would plan a new business. Armed with the strategies explained in the book and a solid business plan, traders will have a blueprint for generating consistent profits in a relatively stress-free and efficient manner.
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Average Customer Review:
5 of 7 people found the following review helpful:
 Deceptive Advertizing, 2008-06-29
The book is a good introduction to options trading and various strategies using options and ETFs. It by no means identifies a way to earn big profits with no risk or even low risk as the title claims.
25 of 31 people found the following review helpful:
 Not recommended for options traders, 2008-04-23
If you are reading this book for options trading ideas, it can not be recommended. I was certainly interested in a "no risk" options trade which Mr Kraft presents as the collar using LEAPS. A collar is buying stock and puts while selling calls and with LEAPS it would be looking to use options with at least one year to expiration. I believe it is possible to find collars with time frames of one year or longer that have no risk however -- there is a cost - which Mr Kraft does not discuss and the cost may be greater than the risk!!! For example, consider a stock trading at 52, 730 days to expiration, 35% voltility, 5% risk free interest, no dividend. The Black scholes formula values the 50 strike put at $7.04; the 60 strike call at $9.32. It appears that one can make an easy $2.28 (=9.32-7.04) if the stock does nothing and ends exactly at 52; that would represent a 2.28/52=4.4% return. But 1) the cost of holding that stock and buying the put (theres no margin required for selling the calls against long stock) is 52+7.04=59.04*.05*(risk free)*2years = $5.90. The true net return is MINUS 3.62 =2.28-5.90. That does not consider the opportunity cost of tying up your money for two years. There may be some good ideas in the book on the trading plan and generating tax free or low taxed income but there do not seem to be any really good ideas on trading options...
1 of 2 people found the following review helpful:
 Well written and clear, 2008-04-14
Very educational, the importance of a game plan is largely overlooked in the popular literature on the subject. The examples given were easy to follow, without getting bogged down in theory. The Straregy Comparison gives quick comparisons of the popular strateg's. After reading the book, and reading the other book rewiews I will be looking for other article's by Mr. Kraft.
4 of 5 people found the following review helpful:
Good Book but certainly could be better, 2008-04-05
Lets first see some good points in the book:
The book is not over priced and is well worth the money paid for it
It is written in a clear and concise manner.
Author is to the point on his subject matter.
There are some points in the book that are well worth more than the price of the book. For example: on Page 49 the author says that: Selling Naked puts is less risky than buying a stock. Then he explains how it is less risky and it makes perfect sense to me. That point was so powerful in itself that I might sell a naked put almost every time I want to buy a stock. BEAUTIFUL.
The book has MORE MEAT than FLUFF. Normally books on trading will start filling the pages with techinical analysis details and a very little space is given to the subject matter at hand. Author has tried to attack his subject through out the book and has tried not to indulge in unnessary details about terminology and basics of technical analysis which only increases the size and price of the book.
Author has focused on a few strategies that he uses and has not tried to go into each and every possible strategy. This has kept the things simple and easy to understand. A specialist is WHO KNOWS MORE ABOUT LITTLE. Mastering one strategy is all you need to make money.
Now lets get to some ways in which this book could have been better.
As anybody who has been in this business for a while knows that Pyschology is a very important aspect of trading. In fact I completely agree with Van K Tharp's Analysis in his book "Trade your way to Financial Freedom". Trading is 10% system, 30% Money Management and 60% Psychology. I dont consider any book complete which has not touched in one way or the other this very important aspect of trading. Author in this book has not considered this aspect of trading to be important enough that a complete chapter should be dedicated to this. This does not mean he does not consider it is important. In the last part of book he has tried to talk about it but it should be in the first part of book and deserve more attention and focus. THe Author might be among the few whose psychology was geared toward success since birth and not like me who spent 2 years, 50K and has to wipe his account 5 times before realizing that there is no holy grail anywhere and I will have to find it inside me. No one but myself can help me. That was a moment of truth, relief and freedom. I lost faith in everything else but me. I wiped all indicators from my charts and since that day trade bare charts (Naked charts). Now I can see things better. If someone tells me about a system or an indicator I just laugh hard. Now I believe that most of the times indicators do more harm than good.
The book certainly has some errors as one of the readers JEF has already mentioned in his post. This is a very sad part of the book. Although to err is human and I dont believe that aouthor has delibrately made that error but the nature of that error is so grave that it can not be ignored. I would suggest aouthor that to go through the book again and post a list of all errors found in the book here or on his website.
NOW FINAL THOUGHTS
In spite of the drawbacks in the book I will give it 5 stars for the following reasons.
Like there is no HOLY GRAIL in trading; No book in this world is perfect. As a trader any trading strategy that makes me money over time deserves a 5 start so I believe the pricipals outlined in this book will make money over time. Hence 5 stars.
Some one asked Micheal Jordon: What is the secret of your success. He said: I do not focus where the ball is but I focus on where the ball is going. I always focus on GOOD THINGS IN LIFE and the same is true for a book.
Bill we Like what you shared with us and will pick up good points in your book; we will also ignore erros in your books and forgive you the mistakes.. becasue we love you... 5 Stars
1 of 3 people found the following review helpful:
Good, honest advice., 2008-03-28
As someone who is new to trading myself, I find Mr. Kraft's clear & concise, yet friendly, tone highly appealing. Mr. Kraft's insights are particularly interesting as he entered the field of trading late in life and has seemingly made a success of this endeavour. He sees it from a more mature viewpoint, thankfully omitting the annoying hype which can permeate a younger man's insights. This no-bull approach is much appreciated.
Mr. Kraft focuses on share trading and option-type instruments in particular, and as such this book has fairly limited use to me in terms of providing me with strategies I might use very specifically, as my focus is the Forex market. Nonetheless, there is much in the book that is beneficial to the trader as the author shares his philosophy of and insights into the world of trading and these are very relevant indeed. He also provides good advice for the trader just starting out, in terms of getting started correctly and putting in place the right basis for successful trading. He also does not seek to over-complicate things.
I recommend this book, particularly for the newer trader.
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