All About OptionsTo minimize risk and greatly increase return, lightning-fast options trading instincts are critical. All About Options, Second Edition is the ideal first step to developing these instincts. With its in-depth coverage of the basics of options and option trading, this new edition is perfect for beginners as well as traders going to the next level. It provides:
All About Options is the clearest, easiest-to-follow guidebook today on the pros, cons, risks, and rewards of using options. |
Contents
| 1 | |
Learning the Basic Option Trading Strategies and Uses to Solidify Objectives | 29 |
A Few More Uses for Options | 61 |
Forecasting Stock and Futures Price Trends | 69 |
Option Price Models and VolatilityThe Most Important Consideration for Serious Option Traders | 95 |
Developing Trading and Money Management Plans | 115 |
What You Need to Do to Implement Your Trading Plan | 131 |
What a Difference the Computer Chip Has Made | 143 |
Knowing a Little about Federal Regulations Can Sometimes Smooth Rough Waters | 167 |
The Single Biggest Mistake New Traders MakePlus a Few Other Common Ones And of Course How to Avoid Them | 179 |
Getting Started or the Secrets of Successful Options Trading | 191 |
Glossary of Terms | 199 |
Sources of More Information | 219 |
Exchanges and Options Offered | 223 |
Description of Option Trading Software | 229 |
INDEX | 235 |
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Common terms and phrases
account papers Additionally approach basic Black-Scholes brokerage firm bull bushel buyer calculate call option cash CBOT cents CFTC Chapter charts close corn daily delivery month delta example exercise price expire worthless fundamental analysis futures contract futures market futures price hedge implied volatility in-the-money increments for prices Index intrinsic value investment investors limited long position losing loss margin money management moving average NASD National Futures Association offset option contracts option prices options expire options markets options trading options-on-futures out-of-the-money patterns percent premium price changes price move profit purchase put option range ratio reason risk rules seller settlement price short short strangle silver specific spread standard deviation stock and futures stock option stock or commodity stock or futures straddle strike price technical analysis tion trad trading strategy trading system trend line underlying entity underlying futures writing
Popular passages
Page 191 - What we call the beginning is often the end And to make an end is to make a beginning. The end is where we start from.
Page 211 - Open Interest : The total number of futures contracts of a given commodity which have not yet been offset by opposite futures transactions nor fulfilled by delivery of the commodity; the total number of open transactions. Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted. Option...
Page 206 - A cash transaction common in many industries, including commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery. Forward Market: Refers to informal (non-exchange) trading of commodities to be delivered at a future date. Contracts for forward delivery are "personalized...
Page 211 - A unilateral contract that gives the buyer the right, but not the obligation, to buy or sell a specified...
Page 95 - I'm just as glad she made me keep hands off, For, dear me, why abandon a belief Merely because it ceases to be true. Cling to it long enough, and not a doubt It will turn true again, for so it goes. Most of the change we think we see in life Is due to truths being in and out of favor.
Page 200 - This term means any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling any commodity or receiving the same for sale on consignment.
Page 213 - Principal," when referring to a person that is a principal of a particular entity, means: (1) Any person including, but not limited to, a sole proprietor, general partner, officer or director, or person occupying a similar status or performing similar functions, having the power, directly or indirectly, through agreement or otherwise, to exercise a controlling influence over the activities of the entity; (2...
Page 69 - It is the ability to foretell what is going to happen tomorrow, next week, next month, and next year. And to have the ability afterwards to explain why it didn't happen.
Page 201 - A call option confers the right, but not the obligation to purchase a particular futures contract, whereas a put option confers the right, but not the obligation to sell a futures contract.
Page 215 - SCALPER A speculator operating on the trading floor who provides market liquidity by buying and selling rapidly, with small profits or losses, and who holds his position for a short time. Typically, a scalper stands ready to buy at a fraction below the last transaction price and to sell at a fraction above. SELLER'S MARKET A condition of the market in which there is a scarcity of goods available, and hence sellers can obtain better conditions of sale or higher prices.