Short Book On Options is just that
– a concise easy to understand primer that first teaches the basics
of stock options and then offers a hands-on approach to using options
conservatively to enhance profits.
with a description of what an option is and how an option works,
The Short Book On Options takes the
reader on a journey from learning the language of options to being
prepared to trade. The book provides detailed answers to these important
- Why would you want
to sell a stock option?
- What do you have
- What do you have
- How do you choose
which option to sell?
The Short Book On Options is especially
useful for long-term buy and hold investors, owners of a self-directed
retirement plan, investment club members – or anyone who wants
to increase the performance and safety of an investment portfolio.
the time you finish reading this book, you will be eager to make
your first options trade and more importantly, be prepared to do so.
The majority of the investing public, and I
assume you are in that group, are unaware of the possible benefits
you can gain from the conservative use of stock options. This
book presents a simple technique for using stock options that you
can apply to your own stock portfolio. Under most market conditions,
if you adopt this strategy, you can produce substantial additional
income. This trading tool is not some closely guarded secret,
although it might as well be, since most investors do not know this
easily understood strategy is available.
You will learn to use options
the probability of making a profit on your stock holdings
your portfolio with some protection, if your stocks decline in price
Those investors who know how to use options
have an edge over those who don't.
book is for you, if you are an investor who does your own research
and makes your own investment decisions.
book is for you, if you are a member of an investment club.
As investors interested in growth and who carefully research
which stocks to own, investment club members are in a position
to benefit from the use of call options.
book is for you, if you have a self-directed retirement account.
The investment technique taught in these pages is the only option
strategy considered sufficiently conservative for all individual
investors to use in retirement accounts. It's especially useful
for these accounts, where earnings are allowed to compound year
after year. If you take advantage of the strategy outlined in this
volume, those extra earnings increase the likelihood of your enjoying a financially secure retirement.
Negative publicity has hounded options trading
ever since the market in tulip options collapsed in the 17th century.
Today, many people turn away from options, and decline when
offered the opportunity to learn how to use them. Thus, investors
are not aware of the benefits to be gained from using stock options.
The truth is, options can be used conservatively to produce
additional earnings, but many people mistakenly believe only
speculators use options. Options volume has surged in recent years as more and moe people take advantage of the risk-reducing properties of options.
are some people who make a living by promoting options as a
get-rich-quick mechanism. There are others who make outrageous
claims about potential profits and charge exorbitant fees for
seminars. I make no such claims. I am only telling you that by using
options there is a high probability your investment account will be
more profitable than a similar account that does not use options. In
order to gain this additional income, you must give up something - and that's the chance of making an overnight killing in the market.
This conservative option
strategy has some risk, and that risk is carefully described.
The strategy that I teach in this volume is
not for everyone, but if you invest in individual stocks,
this book will be an eye-opener for you. If you give up the
small chance of making a bonanza on any particular stock, you gain
a high probability chance of earning a significant additional profit
on each of your stock holdings.
Access to Loans Essential in Volatile Economy, Markets
Buy the Short Book on Options from Amazon.com
The Short Book on Options: Table of
Chapter 1. Recent Options Trading
2. Options Basics
What is an option?
How does an option work?
Options in our daily lives
Chapter 3. The Options When Using
Exercising the option
Allowing the option to expire
Selling the option
Chapter 4. Stock Options
Trading call or put options
Getting started trading options
Chapter 5. Why Enter An Option Order?
Why would you want to sell a call option?
What do you have to gain?
What do you have to lose?
What can go wrong?
Does this strategy really make a difference?
Chapter 6. Let’s Take A Look At The Arithmetic
You made your profit, but what did it cost you?
Chapter 7. How Options Are Priced
Chapter 8. The Numbers
The tables of data
Chapter 9. Volatility
Option premium is dependent on implied volatility
What you can discover from the data. Part 1
Chapter 10. Which Call Option Do You Sell?
Conservative or aggressive options strategy?
Message One to the buy and hold investor
The more conservative positions
What you can discover from the data. Part 2
Message Two to the buy and hold investor
After the call sale, then what?
What if you don’t own stock?
What if your stock doesn’t have listed options?
Chapter 11. Rolling The Position
Rolling as a defensive move
Rolling for opportunity
Chapter 12. Buy Low; Sell High
Sell stock at a higher price
Buy stock at a lower price
Chapter 13. Psychology
Chapter 14. LEAPS
Long Term Equity AnticiPation Series
Chapter 15. Investment Clubs
Chapter 16. Option Quotes
Where do you find option quotes?
Chapter 17. Conclusion
Appendix A. Glossary
Appendix B. Calculations
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