Options for Volatile Markets


  • Pages: 215
  • Format: PDF
  • Published Date: 2011


Options for Volatile Markets: Managing Volatility and Protecting Against Catastrophic Risk

In Options for Volatile Markets, Richard Lehman and Lawrence McMillan provide you with specific strategies to lower portfolio volatility, bulletproof your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with.


The first five chapters in this book represent an updated and condensed version of the basic options and covered call writing content from New Insights on Covered Call Writing. (Chapters 1 and 2 are very elementary and are included so those who have never used options before can start from scratch. Those already familiar with options may want to jump in at Chapter 3 for the basics of covered call writing.)

Chapter 6 focuses on put hedging and Chapter 7 combines call writing and put hedging into collar strategies. Chapter 8 applies these option strategies to the rapidly growing field of exchange-traded funds (ETFs), and Chapter 9 explains how to utilize the new volatility instruments that are now available.

The book is addressed to the broad audience of equity investors, both individual and professional. We feel that every investor in listed equities, whether managing a portfolio themselves, or paying a broker, money manager, or mutual fund manager to manage it for them, should at least recognize that there are tools available to effectively reduce risk and volatility, and to either learn how to use those tools themselves, or find a professional who does.


  • Option Basics
  • Option Pricing and Valuation
  • The Basics of Covered CallWriting
  • Implementing Covered Call Writing
  • Advanced Call-Writing Techniques
  • Basic Put Hedging
  • Advanced Hedging Strategies
  • Options on ETFs
  • Volatility and Volatility Derivatives