![[Review] Get Rich with Options (Lee Lowell) Summarized](https://episodes.castos.com/660078c6833215-59505987/images/2327423/c1a-085k3-dm140z9rckjv-qdltsd.jpg)
Show Notes
Get Rich with Options (Lee Lowell)
- Amazon USA Store: https://www.amazon.com/dp/0470445890?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Get-Rich-with-Options-Lee-Lowell.html
- Apple Books: https://books.apple.com/us/audiobook/investing-for-beginners-this-book-includes-options/id1541857884?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Get+Rich+with+Options+Lee+Lowell+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0470445890/
#optionstrading #coveredcalls #cashsecuredputs #verticalspreads #premiumselling #GetRichwithOptions
These are takeaways from this book.
Firstly, Understanding the Option Marketplace Like a Market Maker, A key theme is that options are priced in a marketplace shaped by liquidity, bid ask spreads, and the constant negotiation between buyers and sellers. Lowell’s exchange floor background supports an insider style explanation of why an option’s displayed price is not a single truth but a range, and how that range affects your real world fills and outcomes. The book emphasizes the importance of trading liquid contracts, paying attention to open interest and volume, and recognizing how spreads can quietly drain performance. It also frames implied volatility as a practical input rather than an abstract concept, showing how volatility expectations influence premiums and how traders can avoid paying too much for optionality. Another important angle is order execution: using limit orders, understanding slippage, and thinking in terms of probabilities and payoffs rather than predictions. By starting with market structure, the book positions readers to avoid common beginner mistakes such as chasing far out of the money lottery tickets, overtrading illiquid names, or ignoring transaction costs. This foundation helps readers evaluate any strategy with clearer expectations for risk, reward, and the friction created by the marketplace itself.
Secondly, Income First: Selling Premium with Covered Calls, One of the most widely used strategies in the book’s toolkit is the covered call, where an investor owns shares and sells a call option against them to collect premium. The central idea is converting some of a stock’s uncertain future return into current income, while accepting a tradeoff: gains may be capped if the stock rallies beyond the strike price. The book highlights how covered calls can fit investors who already hold stock positions and want to add a structured cash flow element, potentially improving returns in flat or mildly bullish markets. Key decision points include choosing expiration length, selecting a strike that matches your willingness to sell shares, and timing entries around events that can expand implied volatility and premiums. The strategy also serves as a discipline tool, forcing clearer decisions about target exits and position sizing. Risk management remains crucial because owning the stock carries downside exposure, and premium income only partially offsets declines. Lowell’s approach encourages readers to view covered calls as a systematic overlay, not a one off trick, with repeatable selection criteria and a plan for what to do if the stock rises, stalls, or falls.
Thirdly, Getting Paid to Buy: Cash Secured Puts for Stock Entry, Cash secured puts are presented as a practical way to pursue stock ownership at a potentially better effective price while earning premium along the way. The trader sells a put option and sets aside enough cash to buy the shares if assigned, meaning the obligation is fully funded. This frames the strategy as a patient limit order with compensation: you either keep the premium if the stock stays above the strike, or you buy the stock at the strike price with the premium reducing your net cost basis. The book explains how this can suit investors who have a watchlist of companies they would like to own but prefer to enter with a margin of safety. Strike selection reflects the price you are genuinely comfortable paying, and expiration selection influences both premium size and assignment probability. Lowell also stresses understanding assignment mechanics and being prepared to take shares without hesitation. Risk is not eliminated because a sharp drop in the underlying can lead to owning shares above market price, but the approach encourages better planning and position sizing. In practice, the strategy can be paired with covered calls after assignment, creating a cohesive income and acquisition framework.
Fourthly, Defined Risk Protection and Opportunistic Upside with Vertical Spreads, Vertical spreads combine buying one option and selling another at a different strike, usually in the same expiration, to shape a payoff with clearer boundaries. The book’s focus is on how spreads can reduce the cost of entry, limit worst case losses, and improve the realism of expected outcomes compared with single leg long options. By selling one leg, the trader offsets part of the premium paid, but also gives up some upside, creating a deliberate balance between affordability and potential reward. Lowell’s framework encourages selecting spreads that match the market thesis and timeframe, and avoiding overly optimistic structures that require improbable moves to win. Because risk is defined at entry, spreads can be easier to size responsibly, which is especially useful for newer traders transitioning from stock to options. The discussion typically includes how time decay and volatility changes affect spreads differently than outright options, and why managing a spread may involve taking profits early, adjusting, or accepting a planned loss when the thesis breaks. This topic reinforces a broader message: options are most powerful when used to design payoffs aligned with your goals, not when used to gamble on dramatic price swings.
Lastly, Trade Management: Rules for Entries, Exits, and Risk Control, Across the strategies, the book repeatedly returns to management rules that separate structured option trading from impulsive decision making. Readers are guided to think in terms of planned scenarios: what happens if the stock moves up, sideways, or down, and what actions are acceptable in each case. This includes setting profit targets, recognizing when a position has achieved most of its potential return, and understanding when rolling an option is sensible versus when it merely postpones a loss. The book also underscores the importance of position sizing, diversification across underlyings, and respecting the fact that selling premium can produce many small wins but also occasional larger losses if left unmanaged. Another aspect is choosing underlyings and avoiding event risk when it does not fit the strategy, particularly around earnings or major announcements that can distort implied volatility and create gap moves. The emphasis on process helps readers build repeatable habits: using checklists, tracking results, and evaluating trades based on decision quality rather than a single outcome. By pairing strategy selection with management discipline, the book aims to help readers pursue consistent results and reduce the emotional roller coaster that often derails options traders.
- Amazon USA Store: https://www.amazon.com/dp/0470445890?tag=9natree-20
- Amazon Worldwide Store: https://global.buys.trade/Get-Rich-with-Options-Lee-Lowell.html
- Apple Books: https://books.apple.com/us/audiobook/investing-for-beginners-this-book-includes-options/id1541857884?itsct=books_box_link&itscg=30200&ls=1&at=1001l3bAw&ct=9natree
- eBay: https://www.ebay.com/sch/i.html?_nkw=Get+Rich+with+Options+Lee+Lowell+&mkcid=1&mkrid=711-53200-19255-0&siteid=0&campid=5339060787&customid=9natree&toolid=10001&mkevt=1
- Read more: https://mybook.top/read/0470445890/
#optionstrading #coveredcalls #cashsecuredputs #verticalspreads #premiumselling #GetRichwithOptions
These are takeaways from this book.
Firstly, Understanding the Option Marketplace Like a Market Maker, A key theme is that options are priced in a marketplace shaped by liquidity, bid ask spreads, and the constant negotiation between buyers and sellers. Lowell’s exchange floor background supports an insider style explanation of why an option’s displayed price is not a single truth but a range, and how that range affects your real world fills and outcomes. The book emphasizes the importance of trading liquid contracts, paying attention to open interest and volume, and recognizing how spreads can quietly drain performance. It also frames implied volatility as a practical input rather than an abstract concept, showing how volatility expectations influence premiums and how traders can avoid paying too much for optionality. Another important angle is order execution: using limit orders, understanding slippage, and thinking in terms of probabilities and payoffs rather than predictions. By starting with market structure, the book positions readers to avoid common beginner mistakes such as chasing far out of the money lottery tickets, overtrading illiquid names, or ignoring transaction costs. This foundation helps readers evaluate any strategy with clearer expectations for risk, reward, and the friction created by the marketplace itself.
Secondly, Income First: Selling Premium with Covered Calls, One of the most widely used strategies in the book’s toolkit is the covered call, where an investor owns shares and sells a call option against them to collect premium. The central idea is converting some of a stock’s uncertain future return into current income, while accepting a tradeoff: gains may be capped if the stock rallies beyond the strike price. The book highlights how covered calls can fit investors who already hold stock positions and want to add a structured cash flow element, potentially improving returns in flat or mildly bullish markets. Key decision points include choosing expiration length, selecting a strike that matches your willingness to sell shares, and timing entries around events that can expand implied volatility and premiums. The strategy also serves as a discipline tool, forcing clearer decisions about target exits and position sizing. Risk management remains crucial because owning the stock carries downside exposure, and premium income only partially offsets declines. Lowell’s approach encourages readers to view covered calls as a systematic overlay, not a one off trick, with repeatable selection criteria and a plan for what to do if the stock rises, stalls, or falls.
Thirdly, Getting Paid to Buy: Cash Secured Puts for Stock Entry, Cash secured puts are presented as a practical way to pursue stock ownership at a potentially better effective price while earning premium along the way. The trader sells a put option and sets aside enough cash to buy the shares if assigned, meaning the obligation is fully funded. This frames the strategy as a patient limit order with compensation: you either keep the premium if the stock stays above the strike, or you buy the stock at the strike price with the premium reducing your net cost basis. The book explains how this can suit investors who have a watchlist of companies they would like to own but prefer to enter with a margin of safety. Strike selection reflects the price you are genuinely comfortable paying, and expiration selection influences both premium size and assignment probability. Lowell also stresses understanding assignment mechanics and being prepared to take shares without hesitation. Risk is not eliminated because a sharp drop in the underlying can lead to owning shares above market price, but the approach encourages better planning and position sizing. In practice, the strategy can be paired with covered calls after assignment, creating a cohesive income and acquisition framework.
Fourthly, Defined Risk Protection and Opportunistic Upside with Vertical Spreads, Vertical spreads combine buying one option and selling another at a different strike, usually in the same expiration, to shape a payoff with clearer boundaries. The book’s focus is on how spreads can reduce the cost of entry, limit worst case losses, and improve the realism of expected outcomes compared with single leg long options. By selling one leg, the trader offsets part of the premium paid, but also gives up some upside, creating a deliberate balance between affordability and potential reward. Lowell’s framework encourages selecting spreads that match the market thesis and timeframe, and avoiding overly optimistic structures that require improbable moves to win. Because risk is defined at entry, spreads can be easier to size responsibly, which is especially useful for newer traders transitioning from stock to options. The discussion typically includes how time decay and volatility changes affect spreads differently than outright options, and why managing a spread may involve taking profits early, adjusting, or accepting a planned loss when the thesis breaks. This topic reinforces a broader message: options are most powerful when used to design payoffs aligned with your goals, not when used to gamble on dramatic price swings.
Lastly, Trade Management: Rules for Entries, Exits, and Risk Control, Across the strategies, the book repeatedly returns to management rules that separate structured option trading from impulsive decision making. Readers are guided to think in terms of planned scenarios: what happens if the stock moves up, sideways, or down, and what actions are acceptable in each case. This includes setting profit targets, recognizing when a position has achieved most of its potential return, and understanding when rolling an option is sensible versus when it merely postpones a loss. The book also underscores the importance of position sizing, diversification across underlyings, and respecting the fact that selling premium can produce many small wins but also occasional larger losses if left unmanaged. Another aspect is choosing underlyings and avoiding event risk when it does not fit the strategy, particularly around earnings or major announcements that can distort implied volatility and create gap moves. The emphasis on process helps readers build repeatable habits: using checklists, tracking results, and evaluating trades based on decision quality rather than a single outcome. By pairing strategy selection with management discipline, the book aims to help readers pursue consistent results and reduce the emotional roller coaster that often derails options traders.
