The Second Leg Down: Strategies for Profiting after a Market Sell-Off (The Wiley Finance Series) 1st Edition

I've been trading for 20 years and read 100's upon 100's of trading books. This by far is one of the more unique ones because it covers a topic rarely discussed, yet heavily needed.That is: How to trade bear markets, steep sell-offs, and neutralize risk/hedge for big market losses after such strong trends.If you trade options, if you have a large portfolio, if you're a long term investor, or a short term trader trying to deal with these market situations, then this book is for you.It's well written, in an easy style, yet covers some highly technical points (like volatility skew, option pricing dynamics, etc).Some key insights:1) Watch pricing of options to determine over-leverage in particular assets/stocks/instruments and look to hedge for cheap2) When said instruments start to fall, be long Vol and short Gamma3) After a big sell-off in those instruments, look to get long Gamme and short Vol (very helpful with the recent US election)4) How to gamma scalp and trade mis-pricing of options (particularly before the big sell-off) by getting cheap protection5) How to use put ratios for potential large declinesThere is a lot more I could mention, but I highly recommend this book to any of the traders I listed above.Hopefully Hari writes another book down the line as this one was great and covered a unique topic rarely discussed or written about.

This is the best book on hedging. Derman and Taleb rely way too much on math. You don't used math to trade. Krishnan gives an intuitive and entertaining explanation in English with less Greek. Highly recommended!

A lot of depth. I've traded equities, futures and options for 25 years and this was pretty tough slogging for me. Would have preferred something a little more readable and applicable at my level. Other than that well written.

The book's goal is to explain how to hedge your portfolio after a market fall, in anticipation of the feared "second leg down." It does this with a clear explanation of option markets and investor behavior supported with empirical evidence. You do NOT need to be an expert in math to understand this book. Option market ideas are explained intuitively and key concepts are reiterated and reviewed.As a now-retired portfolio manager I wish this book would have been around in 2007-2008. However, even if you are not looking to hedge your portfolio (or don't think you are!) this book is still worth reading. You'll get a deeper understanding of how option markets interact with the underlying, sometimes even become the driving force. And there are great examples about how leverage can cause volatility to appear seemingly out of nowhere and can make high Sharpe Ratio strategies become very fragile when applied too aggressively.

I learned quite a bit from this book about using option strategies appropriately to hedge risk. I think this is one of the best books on trading/investing genre. It's quite well written and is very useful. I highly recommend reading it several times.

I loved this book as I have tried to hedge a stock market crash for over a year with little success however I have managed to limit my theta risk to a minumum by buying far otm volatilty options and have kept my hedging cost to a fraction of 1% of my portfolio. with the stock market at risk levels not seen since 1929 and 2000 it is just a matter of time until a major bear market and this book is a great resourse to protect investors in a crash or bear market. I might add that I belive that preserving capital in a bear market is more inportant than earning high returns in a bull market as it can take years to recover lost capital from a bear market. Thanks, Jim

Highly recommended if you want to understand how to navigate a downturn and options strategies that effectively and cheaply insulate your portfolio

Quite simply, this is a very well-written reference book authored by a professional trader. Extremely informative and, in my opinion, for less than $60 offers immense value for traders/investors focused on managing risk. In fact, it is one of the best works I've read related to trading and tail protection. I am looking forward to buying Mr. Krishnan's next book (which will hopefully be soon)!