Thousands of individual traders and investors used the first two editions of Tom McCafferty’s All About Options to master every aspect of the options market_and develop strategies for making winning investments. This book provides a clear, no-nonsense explanation of the risks and rewards of using options, ranging from options basics to hedging and speculating to options pricing.
If investors do not do their homework, arbitrarily buy options, and do not closely follow the markets, you might as well consider what they’re doing is gambling—but wouldn’t this be true for any investment? Serious option traders use the law of probability to take advantage of the distortions in the supply-demand situations of stocks and/or commodity futures contracts that regularly occur. Experience, research, and even a little help from a good broker can put the statistical odds in your favor.
Trading options on stocks and/or futures is complex. Serious investors must invest in books, newsletters, seminars, software and other educational materials. Much time is required to master option trading—but the potential rewards can make the effort a joy. On the other hand, I have no intention of misleading you.
Option trading, like trading in any other investment, entails substantial risk. Not every investor is suited for it because it is such a highly speculative venture. Reading this book is a good start toward understanding options, but please consider it as only the beginning. When you’re finished, you should have a solid overview of the subject and a good idea of where you need to turn next in your quest for success in the options markets.
- Understanding the Basics, Particularly the Value and Risks Associated with Stock Options and Options-on-Futures Trading
- Learning the Basic Option Trading Strategies (and Uses) to Solidify Objectives
- A Few More Uses for Options
- Forecasting Stock and Futures Price Trends
- Option Price Models and Volatility—The Most Important Consideration for Serious Option Traders
- Developing Trading and Money Management Plans
- What You Need to Do to Implement Your Trading Plan
- What a Difference the Computer Chip Has Made
- Selecting the Broker That’s Right for You
- Knowing a Little about Federal Regulations Can Sometimes Smooth Rough Waters
- The Single Biggest Mistake New Traders Make—Plus a Few Other Common Ones! (And, of Course, How to Avoid Them)
- Getting Started, or the Secrets of Successful Options Trading