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Services Offered by IOI, LLC

IOI Reports is an annual subscription-based service. To become a client you must be a Professional or Institutional Investor.

IOI Boot Camps are three and a half days of intensive training in using options as a value investing tool for serious individual and institutional investors.

IOI Tools allow readers of The Intelligent Option Investor to estimate stocks' fair values and structure option investments in the way described in the book.

Praise for The Intelligent Option Investor

I highly recommend the book! The author does a fantastic job explaining how to use derivatives in long-term, value-oriented investing. He explains how to use derivatives to make your payoff asymmetric – where your upside and downside are different. He does not focus on the mathematics of options, but rather on how to use them in a sensible way. An analogy one can think of is driving a car – you don’t need to understand precisely how the car works in order to use it.
"IG"five starsvia

Online Appendices & Errata for First Edition

One web appendix takes a detailed look at the four drivers of value for a firm; the other shows how to use best- and worst-case estimates of those drivers to generate valuation ranges. Both provide real-world examples. Read Now

Introduction to The Intelligent Option Investor

You have a tremendous advantage over algorithmic trading models, investment bank trading desks, hedge funds, and anyone who appears on or pays attention to cable business news shows. This book is written to show where that advantage lies and how to exploit it to make confident and successful investment choices. In doing so, it explains how options work and what they can tell you about the market’s estimation of the value of stocks.

Even if, after reading it, you decide to stick with straight stock investing and never make an option transaction, understanding how options work will give you a tremendous advantage... Continue Reading

Read Erik’s Harvest Interview Series Profile

Harvest: I was really struck by your unique and global background. Tell us a little about what you’ve done and your and investment experience.
Erik: I started off my career in 1997, working on the sell-side—on the Tokyo trading desk of a bulge bracket firm. At that time, I was mainly interested in things like behavioral finance and complexity theory, and applying those topics to quantitative investing.  [Continue reading...]

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Educational Materials

1. Option Basics (5:28)

This video introduces the two most important features of options--their inherent directionality and peerless flexibility--and compares them to stocks. We introduce options using a distinctive and memorable concept called "ranges of exposure" and explain option jargon in a clear way. Watch Now

2. Valuation Ranges (7:51)

The Intelligent Option Investor recommends focusing on understanding as a range rather than a point estimate. Doing so helps investors avoid some dangerous behavioral pitfalls--and allows them avoid getting stuck in a "value trap." This video also talks about "margin of safety" and why this concept is hard to put into practice in real life. Watch Now

3. Option Pricing (6:28)

Do you think that option pricing is difficult? Or not relevant to the way you like to invest? Think again! This video shows how easy option pricing is and why understanding it gives a stock investor a leg up on the market. If you understand option pricing, investing becomes like playing poker with an opponent who always leaves his cards face up. Watch Now

4. The Essence (3:25)

The essence of Intelligent Option Investing is this: 1) See clearly what price the market expects for a stock in the future, 2) understanding the value of that stock, and 3) using a combination of stock, options, and cash to make prudent levered investments in mispriced companies. Watch Now

Quick Start Guide (4pp)

Other than reading The Intelligent Option Investor, this is the best way to understand the concepts and diagrams used by IOI.

Read Now

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