Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks

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FT Press, Dec 18, 2012 - Business & Economics - 250 pages
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Master option trading strategies one step at a time! Options for the Beginner and Beyond, Second Edition teaches options through brief, carefully-paced lessons on option concepts and trading strategies, crystal-clear definitions, and plenty of real trading examples. Every lesson builds on the one preceding it, explaining options in plain English, and guiding you all the way to advanced strategies covered in no other introductory tutorial. Drawing on his extensive experience teaching options trading to beginners -- and five years editing a leading options newsletter -- W. Edward Olmstead shows how to systematically control your risk, protect your investments, and maximize your profits. This new Second Edition integrates new coverage of weekly options throughout, and presents updated tax strategies every options trader needs to know. Olmstead shows you how to do all this, and much more:

  • Select options with high profit potential
  • Enter and exit trades
  • Choose brokers
  • Work with the Greeks, risk graphs, and LEAPs
  • Use vertical, event producing, and calendar spreads
  • Trade covered calls, straddles, strangles, married puts, and collars
  • Master these and other sophisticated strategies: naked options, stock substitutes, backspreads, butteryfly spreads, iron condors, and double diagonals
  • Implement effective end-of-year tax strategies
  • Day trade indexes with options
  • Use delta-neutral trading
  • Leverage the theory of maximum pain; implied volatility, and Black-Scholes
 

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Fantastic beginner options book. It really helps you, from the basic definitions to advanced trading strategies. Don't hesitate any more, pick it up.

Contents

Acknowledgments
Option Selection
Entering and Exiting Option Trades
Risk Graphs
Assignment Anxiety
Miscellaneous Tips
Copyright

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About the author (2012)

W. Edward Olmstead has a B.S. from Rice University and a Ph.D from Northwestern University, where he is currently Professor of Applied Mathematics in the McCormick School of Engineering and Applied Sciences. He has received several prestigious awards for teaching excellence including an endowed chair. His teaching activities include courses that cover both the theory of options pricing and practical strategies for trading options.

In the world of finance, Dr. Olmstead has more than fifteen years of experience in the trading of options. He holds a FINRA Series 65 license along with considerable experience as an options consultant. He has written various articles on options for the online media.

Dr. Olmstead was Editor of The Options Professor newsletter published by Independent Investor, Inc. during 2003-07. His consulting activities included service as an options analyst for Spear Capital Management. He also worked on an ultra short-term trading concept for a member firm of the Chicago Mercantile Exchange. Since 2010, he has utilized a proprietary options strategy in the management of funds for a group of private clients.

For more information about Dr. Olmstead’s current options interests, go to www.olmsteadoptions.com.

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