Options:Essential Concepts, 3rd EditionGet the acknowledged industry classic revised and updated to deliver everything from time-honored options concepts to strategies for individual and institutional investors and traders. Every stock trader or market maker, whether currently involved with options or not, should own OPTIONS: ESSENTIAL CONCEPTS AND TRADING STRATEGIES, THIRD EDITION. Written by todays leading options practitionersand edited by The Options Institute, the globally renowned Educational Division of the Chicago Board Options ExchangeOPTIONS leaves no stone unturned in delivering the most complete, authoritative, and easy-to-understand blueprint available for navigating the profitable twists and turns of todays options marketplace. No-nonsense, packed with useful information, and valuable as either an introductory textbook or a comprehensive fingertip reference source, this thoroughly revised and updated edition details: What options are, how they are priced, and how they are traded; Basic option trading strategies such as covered writing and protective puts; Advanced strategies involving LEAPS and the stock repair strategy; Options from three points of view: private investor, institutional investor, and market maker; How to use the power of the Internet for trading and detailed information gathering. The well-organized, thought-provoking, and dependable ideas found here will help you use options to increase the returns in virtually any investment mix. The comprehensive answers to a wide range of options questions, as well as insights into the latest options trading strategies, cover: Option Market History From early transactions to latter-day innovations including LEAPS and index options, knowledge of options industry history will help you intuitively understand and trade profitably today; Essential Concepts Fundamentals of options pricing theory and their relationship to market prediction, stock selection, and risk management; volatility explained; and introductory strategies from long call to covered strangle; Investing and Trading Strategies Discussions of how to approach and understand "investing" strategies that focus on ownership of an underlying equity versus "trading". strategies with no intent to hold the underlying stock; plus, the function of market makers ; Real-Time Applications Institutional case studies; how to use options as an indicator of price moves for an underlying stock; using the Internet for instantaneous trades and information; plus, a comprehensive glossary of option market terminology. OPTIONS, THIRD EDITION, takes the guesswork out of trading options and gives you the information you need to become a savvy options trader. So get your questions together, and use this step-by-step guidebook to develop option strategies that meet your investment objectives: hedging your stock market risk, increasing your portfolio income, or improving your trading results. |
Contents
The History of Options | 1 |
ESSENTIAL CONCEPTS | 17 |
Fundamentals of Options | 19 |
Copyright | |
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April 50 calls at-the-money calls bearish break-even point bull call spread bullish buy-write buyer calculated call option cash CBOE cost covered call delta equity options equity portfolio example expected value expiration date expire worthless Figure floor broker futures futures contracts implied volatility in-the-money index call index level index options index puts LEAPS calls limited listed options long call long put long stock loss market decline market makers move off-floor investors option contracts option expiration option position option premium option prices option strategy option trading option volume Options Institute options market out-of-the-money calls out-of-the-money puts Paige percent portfolio insurance portfolio manager premium paid premium received price change price II protective put purchase put and call put options put-call parity return distribution seller short call short put sold stock price straddle strangle strike price Table theoretical value tion trading floor underlying security underlying stock XYZ stock