Option Strategies: Profit-Making Techniques for Stock, Stock Index, and Commodity Options
Option Strategies will take you on a guided tour of the world of option strategies. Options present the investor with a myriad of new strategies. Some are very conservative, such as covered call writing, whereas others are very speculative, such as naked call selling. Options provide more and often better ways to fine-tune your investing strategies to expected market conditions.
Introduction:
Option Strategies covers all types of options: stock index, stock, and commodity. Bullish and bearish strategies are covered equally. It will be useful to all options traders and hedgers, from novices to professionals. The book is divided into two parts. The four chapters of Part One outline the fundamentals of options. This part forms a base for the remainder of the book. Even experienced options traders should scan these chapters to make sure they are using the same terminology as is found in this book.
Part Two contains Chapter 6, which outlines several of the considerations that are important in selecting a strategy. The following chapters discuss each main strategy, the risks and rewards of the strategy, the selection of the various components of the strategy, and the necessary follow-up actions. In This Edition, Author has added a new chapter, Chapter 24, which outlines the most critical aspects of trading, psychology, and risk management. This book is meant to be used every day by the options strategist and trader. Wear it out!
Contents:
– PART ONE : Why and How Option Prices Move
- The Fundamentals of Options
- The Basics of Option Price Movements
- Advanced Option Price Movements
- Volatility
– PART TWO : Option Strategies
- Selecting a Strategy
- Buy a Call
- Buy a Put
- Naked Call Writing
- Covered Call Writing
- Ratio Covered Call Writing
- Naked Put Writing
- Covered Put Writing
- Ratio Covered Put Writing
- Bull Spreads
- Bear Spreads
- Butterfly Spreads
- Calendar Spreads
- Ratio Spreads
- Ratio Calendar Spreads
- Straddles and Strangles
- Synthetic Calls and Puts
- Synthetic Longs and Shorts
- How to Make Money Trading Options
