is to teach individual investors to use options conservatively and intelligently -
adding safety and profitability to their portfolios. But before
trading options, it's best to understand exactly what an option is how an option works. You can
read my personal trading philosophy,
which includes advice for option rookies.
Thus, the natural place to begin is with the
The options world has its own language, and if
uou are unsure of the meaning of new words you encounter, use the
We periodically write a short article or column on various option topics. See the
or visit the
There's also a discussion of
and how the
of an option is calculated. If you are going to trade options, you must understand how option prices
in the marketplace.
You can learn about the VIX
(CBOE Volatility Index), with
There is also a good discussion of iron condors and how to trade them. Begin here and follow the links.
There are many Internet sites devoted to options, and a search engine can give you an overwhelming number of sites to visit.
In addition to our pages, I recommend three specific sites for option rookies:
1. CBOE. The Chicago Board Options exchange offers excellent guidance for beginners at its
2. OIC. The Options Industry Council: OIC offers a variey of material
for investors who are learning about options.
3. The Options Clearing Corporation OCC has information for those who are interested in
details of how the options industry works.
There is one pamphlet you should read. Characteristics and Risks of Standardized Options.
Your broker gives you a copy when you get permission (yes, you must fill out forms to get permission) to
trade options. You can download a copy here
We've written three books especially for investors who are first learning about options.
The Rookie's Guide to Options Options: The Beginner's Handbook of Trading Equity Options
explains, in detail, all you need to know to begin trading options successfully.
The Rookie's Guide to Options:
The Beginner's Handbook of Trading Equity Options
Learn more about the
You can benefit from learning about options if any of these apply to you:
You enjoy making your own trading decisions
You are a buy and hold investor
You have a self directed retirement plan
You are a member of an investment club
You want an investment portfolio that is both safer and more profitable.
Even the experienced options
trader will find useful information on this web site, but the investor who
will gain the most from mdwoptions.com is someone who is relatively new to options.
The buy and hold investor has to depend on selecting stocks that
increase in price in order to earn money from his investments. By
adopting conservative option strategies, you can earn a
profit, even when your stocks decline. By adopting any of the strategies taught in The Rookie's Guide to Options
you will enjoy a greater number of profitable positions, but in order to gain
the benefits described, the investor has to give up something. That
something is the opportunity to make a bonanza on any given stock. We believe
that the investor who makes steady profits - repeatedly - will be
better off over the long term than the investor who stubbornly
searches for that elusive jackpot.
Is this site only for the beginning options trader?
These pages include discussions of more advanced topics, giving you a better understanding
of how options are traded.
Both volatility and the calculation of theoretical option values are such topics. And the book contains matereial suited to
the seasoned investor. Download a descriptive e-version.
Have questions? Want clarification? Please ask via email.
We offer one on one consultation and seminars
covering a variety of option topics.
Visit the site map to tour this site.
Welcome to the options universe.