WHAT ARE YOUR OPTIONS? Essential Guide On Options & Profitable Option Strategies (Edition 1)
Business & Finance, Finance & Investing, Investments & Securities
| Author: | B P Terence TEO | ISBN: | 9781465858306 |
| Publisher: | B P Terence TEO | Publication: | December 8, 2011 |
| Imprint: | Smashwords Edition | Language: | English |
| Author: | B P Terence TEO |
| ISBN: | 9781465858306 |
| Publisher: | B P Terence TEO |
| Publication: | December 8, 2011 |
| Imprint: | Smashwords Edition |
| Language: | English |
Looking to improve your options trading performance and profits? Read this book.
"What Are Your Options? -Essential Guide On Options & Profitable Option Strategies" is a practical guide on options and profitable option strategies.
Tailored for the beginner and intermediate option traders. It contains detailed explanations on practical and profitable Option Strategies and lessons from an experienced trader's perspective.
Some highlights of this book:
AN OVERVIEW – OPTIONS BASICS
What are Options? Why are they considered financial leveraged derivatives? What are the different kinds of Options? What components make up the option value? What are contract sizes, strike prices and expirations? These and other elementary concepts are presented in this section, offering an overall macro picture, and will lead us logically into the succeeding sections.
VANILLA OPTIONS – CALLS AND PUTS
Call and Put options, by themselves, are known as Vanilla options. The profit and loss profiles of buying and selling vanilla options are explained with highlights on the pitfalls of naked vanilla SHORT options.
”MONEY-ness” – ITM/ATM/OTM
What makes an option In-The-Money, At-The-Money or Out-of-The-Money is determined by the relationship of strike price to the underlying asset price. Why do traders choose certain “money-ness” options over others? This is explained here.
OVERVIEW OF OPTION STRATEGIES
Vanilla options can be purposefully combined to form option strategies. This section broadly explores these strategies.
BASIC OPTION STRATEGIES
- Vertical Spreads
- LONG Ratio Spreads
When used appropriately, option strategies are constructed to achieve some specific objective/s. These may be to limit risk exposures, increase the chances of success or to hedge risk exposures. Vertical spreads, such as LONG Call/Put spreads, offer traders the chance of profiting without the worry about huge risks. Ratio spreads are made up of vanilla options and can be structured to offer potentially higher chances of profiting, but they come at a price.
OPTIONS VALUE
How do options derive their values? In a gist, options values are a function of several key variables, such as options strike price, time to expiration and others. This section gives the details.
ADVANCE OPTION STRATEGIES
- LONG Butterfly
- LONG Condor
Butterflies, often referred in abbreviation as “flies” and condors are slightly more advance option strategies that are characterized by their limited profit potential and limited liability. This section shows the use of ITM/ATM/OTM options to create directional and/or non-directional bias option strategies.
OPTION GREEKS
Option Greeks are values assigned to individual option. This section offers concise explanations of the key option Greeks that every options student and trader must comprehend. Delta, Gamma, Theta, Vega and Rho affect the choices of which options to trade.
In case you were looking for a “get rich quick” book, this is not it. Options trading is never a way to instant riches. If it was, everyone would be trading options by now. Nothing quite useful can be achieved without the accompanying effort to learn and this book offers that education. Every effort has been made to be terse without leaving out key principles about options.
"What Are Your Options?" is Volume 2 of Knowledge Creates Wealth series.
My other publication, "What About Options? A Prelude to Profitable Options Trading" is found in Amazon and Smashwords.
Thank you for your interest and if you purchase this book, 5% of royalties received will go to charity. You can email me your charity of choice and I'll try to accomodate wherever possible.
Looking to improve your options trading performance and profits? Read this book.
"What Are Your Options? -Essential Guide On Options & Profitable Option Strategies" is a practical guide on options and profitable option strategies.
Tailored for the beginner and intermediate option traders. It contains detailed explanations on practical and profitable Option Strategies and lessons from an experienced trader's perspective.
Some highlights of this book:
AN OVERVIEW – OPTIONS BASICS
What are Options? Why are they considered financial leveraged derivatives? What are the different kinds of Options? What components make up the option value? What are contract sizes, strike prices and expirations? These and other elementary concepts are presented in this section, offering an overall macro picture, and will lead us logically into the succeeding sections.
VANILLA OPTIONS – CALLS AND PUTS
Call and Put options, by themselves, are known as Vanilla options. The profit and loss profiles of buying and selling vanilla options are explained with highlights on the pitfalls of naked vanilla SHORT options.
”MONEY-ness” – ITM/ATM/OTM
What makes an option In-The-Money, At-The-Money or Out-of-The-Money is determined by the relationship of strike price to the underlying asset price. Why do traders choose certain “money-ness” options over others? This is explained here.
OVERVIEW OF OPTION STRATEGIES
Vanilla options can be purposefully combined to form option strategies. This section broadly explores these strategies.
BASIC OPTION STRATEGIES
- Vertical Spreads
- LONG Ratio Spreads
When used appropriately, option strategies are constructed to achieve some specific objective/s. These may be to limit risk exposures, increase the chances of success or to hedge risk exposures. Vertical spreads, such as LONG Call/Put spreads, offer traders the chance of profiting without the worry about huge risks. Ratio spreads are made up of vanilla options and can be structured to offer potentially higher chances of profiting, but they come at a price.
OPTIONS VALUE
How do options derive their values? In a gist, options values are a function of several key variables, such as options strike price, time to expiration and others. This section gives the details.
ADVANCE OPTION STRATEGIES
- LONG Butterfly
- LONG Condor
Butterflies, often referred in abbreviation as “flies” and condors are slightly more advance option strategies that are characterized by their limited profit potential and limited liability. This section shows the use of ITM/ATM/OTM options to create directional and/or non-directional bias option strategies.
OPTION GREEKS
Option Greeks are values assigned to individual option. This section offers concise explanations of the key option Greeks that every options student and trader must comprehend. Delta, Gamma, Theta, Vega and Rho affect the choices of which options to trade.
In case you were looking for a “get rich quick” book, this is not it. Options trading is never a way to instant riches. If it was, everyone would be trading options by now. Nothing quite useful can be achieved without the accompanying effort to learn and this book offers that education. Every effort has been made to be terse without leaving out key principles about options.
"What Are Your Options?" is Volume 2 of Knowledge Creates Wealth series.
My other publication, "What About Options? A Prelude to Profitable Options Trading" is found in Amazon and Smashwords.
Thank you for your interest and if you purchase this book, 5% of royalties received will go to charity. You can email me your charity of choice and I'll try to accomodate wherever possible.
