How I Trade Options gives retail investors who have little or no prior knowledge the insight into how options work and how to use them effectively and responsibly. For those who want to learn about options, this is a rare opportunity to learn from a master trader.
Options trading can be a crazy business, with thousands of shares of stock traded every few seconds to hedge positions with face values in the millions of dollars. But if you like action, there is no better business. I intend to show you how options can become a part of your portfolio, whether you have $50,000 in stocks and mutual funds or whether you’re a multimillion-dollar speculator. With proper training and dedication, you can use options to both increase cash flow and safeguard your investments.
Trading, like life, does not come easily, and my career in trading is no exception to this rule. My success has been the result of seizing opportunities, enduring losses, and adapting strategies to changing times. The options market is where I earned my graduate degree in making money. Now, I want to share my knowledge and experience. Why? Because a healthy options market benefits all of us-professional traders, retail investors, and speculators alike.
I wrote this book for investors who want to know how to protect their existing investments in stocks or mutual funds, or perhaps create some cash flow from their long-term holdings. Finally, because investors regularly ask me what the life of a floor trader is like, I thought that this book could answer some of their oft-repeated questions: What amounts of risk do market makers take? How much can we make? How stressful is this job?
- the making of a trader
- the marketplace
- a case for options
- beyond the basics
- from the short side
- playing the broad market
- when to do what-and why!
- building a team-the day-trading firm
- getting the right tools
- what changes, what stays the same