In Profit With Options: Essential Methods for Investing Success, McMillan has attempted to provide an overview of the options trading process in a more concise, hands-on way. Each chapter of book covers a specific concept and ends with a set of review questions and answers that will assist you in absorbing and implementing the material covered.
While the introduction does address basic terms and the building blocks of option trading concepts, the book as a whole is written for someone with some degree of investment and trading experience. The first chapter also moves right into the components of option price, using historical and implied volatility to formulate your option trading strategy, and understanding the advantages an option model can provide.
Chapters 2 and 3 explain how to use options as both direct and contrary indicators, with examples showing how each can predict market direction and help you decide which options to buy under both scenarios. Chapter 4 teaches you how to incorporate system trading into an overall options game plan and illustrates the value of taking the system approach. A variety of systems types are outlined that are applicable for both short-term and long-term investors. Chapter 5 presents powerful methods for using options as “insurance” and portfolio protection, which is one of their key strengths. Chapters 6 and 7 conclude with various strategies for profiting from trading volatility.
Each chapter of the workbook can stand on its own, but taken together, they form the basis of a well-rounded options trading program. With the end-of-chapter questions provided, you can test your knowledge of the concepts, techniques, and systems featured in Profit with Options before you need to put them into action in the real trading world. And this learn-by example workbook should prepare you for making the right moves at the right time, while reacting swiftly to opportunities that arise in the fast-paced options arena.
- Options as Direct Indicators
- Options as Contrary Indicators
- System Trading
- Protecting a Stock Portfolio
- Trading Volatility
- Buy Low and Sell High—Volatility, That Is
Profit With Options: Essential Methods for Investing Success By Lawrence G. McMillan