5GQ: Erik Kobayashi-Solomon - The Intelligent Options Investor

In this week's Five Good Questions, we're interviewing Erik Kobayashi-Solomon about his book The Intelligent Options Investor.
Erik Kobayashi-Solomon is a 20-year veteran of investment banking, hedge funds, and third-party analysis industry. He is also the co-founder of IOI Investor Services, LLC, a company that helps institutional and individual investors close the gap between their investment responsibility and their skill set. His book, The Intelligent Option Investor, was published by McGraw-Hill as a well-regarded contribution to the value investing community.
1. Many value investors may feel like options are dangerous, I know I did. Why was I wrong to be fearful and how can options be a useful tool for an investor?
2. Assuming your analysis leads you to believe a company is undervalued, why might options be better expression than just buying and holding? What about the element of timing that options introduce?
3. If you don’t believe in the Efficient Market Hypothesis, why should you be especially attracted to options investing?
4. What is delta, and what can it tell us about Mr. Market?
5. What are LEAPS and are they a good first step for a traditional value investor to dip their toe in the options water? How would address the concern that an investor might feel about getting comfortable with the relative trade-offs of premium price vs. tenor and strike price?

[@freetrailer4poor]

Fifty Years In Wall Street by Henry Clews , great book predicts hyperloop. Also shows stocks can be cornered, not talked about today. Chap III - How to Make Money on Wall Street, is valuable most of the rest of the book (I read it all) is more about the people. Scanning this chapter he talks about intrinsic value and how experience is more important than intelligence.

[@freetrailer4poor]

If you estimate what the price of a stock will be on Jan 18, 2019 all you have to do determine if it is profitable to buy the stock at that price. So you pick any stock say AAPL. You say it is 50% to be $170, 25% to be $100, and 25% to be $190. Then you can find the value of your leaps call option at $80, $100, $120, $140, ... Buying the stock outright can be the best bet, especially stocks with no leaps options and given that fact you have to pay a call option premium.

[@michaelmilburn3094]

Hi Jake, I think the buy link that features the book at the end is not correct.

[@jacobtaylor5759]

Fixed, thanks!