The Short Book on Options: A Conservative Strategy for the Buy and Hold Investor by Mark D. Wolfinger<title> <meta http-equiv="content-type" content="text/html; charset=ISO-8859-1"> <meta name="author" content="Mark Wolfinger"> <meta name="description" content="Learn options basics, conservative strategy, covered call writing, Stock volatility"> <meta name="keywords" content="options education, stock volatility, options strategy, covered call wsriting, stock options, trading, options calculator, conservative strategy"> <style type="text/css" media="all"> body { font: 0.6em arial, helvetica, sans-serif; } #header ul { list-style: none; padding: 0; margin: 0; } #header li { float: left; border: 1px solid #bbb; border-bottom-width: 0; margin: 5; } #header a { text-decoration: none; display: block; background: #eee; padding: .24 0em; color: #00c; width: 6.5em; text-align: center; } #header a:hover { background: #ddf; } #header #selected { border-color: black; } #header #selected a { position: relative; top: 1px; background: white; color: black; font-weight: bold; } #content { border: 1px solid black; clear: both; padding: 1em; } h1 { margin: 0; padding: 0 0 1em 0; } </style> <STYLE TYPE="text/css">  div { margin: 10px 20px; } </STYLE </head> <body> <div id="header"> <center><font face="Nyala"><font size="+4">mdwoptions<br>Options Education for Individual Investors</font></font></center><br> <ul> <center> <li><a href="http://www.mdwoptions.com">Home</a> </li> <li><a href="http://www.mdwoptions.com/Author.html">About Us </a> </li> <li><a href="http://www.mdwoptions.com/BasicConcepts.html">Option Basics </a></a></li> <li><a href="http://www.mdwoptions.com/Education.html">Education</a></li> <li id="selected"><a href="http://www.mdwoptions.com/3Books.html">Our Books</a></li> <li><a href="http://www.mdwoptions.com/class.html">Seminars</a></li> <li><a href="http://www.mdwoptions.com/Philosophy.html">Our Philosophy</a></li> <li><a href="http://www.mdwoptions.com/volatility.html">Volatility</a></li> <li><a href="http://www.mdwoptions.com/VIXgraph.html"> VIX Graph </a></li> <li><a href="http://www.mdwoptions.com/GlossaryBook.html">Glossary</a></li> <li><a href="http://www.mdwoptions.com/Contents.html"> Site Map</a></li> <li><a href="mailto: mark@mdwoptions.com">Contact Us</a></li> </center> </ul> </div> <div id="content"> <p><font size="1">Ourfirst book. For readers who want a simple path to getting started using options.</font></p> </div> <br><center> <script type="text/javascript"> </script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </center><br> <div align="Justify"> <br><center><font size="+2"><font face="Helvetica, Arial, sans-serif">The Short Book On Options: <p><font size="+2"> A Conservative Strategy For The Buy And Hold Investor <p>By</p> Mark D. Wolfinger</center> <hr> Click </font><a href="http://www.mdwoptions.com/images/CoverShortBook.jpg" target=""blank"" target ="blank">here</a> to see image of front and back covers.<hr> <div align="Center"> <b> <br>free shipping to U.S. and Canada</b></font> <br><br><small><b><font face="Helvetica, Arial, sans-serif"> <a href="http://www.mdwoptions.com/BuyTheShortBookonOptions.html" target="blank" ><center><h2>Buy</a> <br><br>Paperback version ($13.95)<br><br>or<br><br> e-book version ($3.50) <br><br></font> <font face="Helvetica, Arial, sans-serif"> <hr> </font></b></small><small><b><font face="Helvetica, Arial, sans-serif"> </font></b> </div> <div align="Center"> <a href="#synopsis">Synopsis</a> <a href="#Excerpt"> Excerpt</a> <a href="#contents"> Table of Contents</a> </div> <hr><br> <div align="Left"> <b> Briefing.com<a name="briefing"></a> (Robert V. Green) wrote:</b> <div align="justify"> <br><font face="Helvetica, Arial, sans-serif">"A great introduction for those new to options - but with some innovative ideas for those already familiar with options - how to use calls to effectively sell stock at prices higher than the current market price." Robert V. Green, Briefing.com<br><br> For the full review, click <a href="http://www.mdwoptions.com/BriefingReview.html" target="_blank">here</a></font> <br></div> <br><b>Synopsis:</b><a name="synopsis"></a> <div align="Justify"><font face="Helvetica, Arial, sans-serif">The <u><b> Short Book On Options </b></u>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.</font><br> <br> <font face="Helvetica, Arial, sans-serif"> Beginning with a description of what an option is and how an option works, <u><b> The Short Book On Options</b></u> 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 questions: </font><br> <ul> <li><font face="Helvetica, Arial, sans-serif">Why would you want to sell a stock option?</font></li> <li><font face="Helvetica, Arial, sans-serif">What do you have to gain?</font></li> <li><font face="Helvetica, Arial, sans-serif">What do you have to lose?</font></li> <li><font face="Helvetica, Arial, sans-serif">How do you choose which option to sell?</font></li> </ul> <br><br> <div align="Justify"><font face="Helvetica, Arial, sans-serif"><u><b> The Short Book On Options</b></u> 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. <br> <br> By 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.<br> <br> </font></div> <b>Excerpt:</b><a name="Excerpt"></a> <div align="Justify"><font face="Helvetica, Arial, sans-serif"> 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.</font><br> </div> <br> <font face="Helvetica, Arial, sans-serif"> You will learn to use options to: </font><br> <ul> <li><font face="Helvetica, Arial, sans-serif">Increase the probability of making a profit on your stock holdings</font></li> <li><font face="Helvetica, Arial, sans-serif">Provide your portfolio with some protection, if your stocks decline in price</font></li> </ul> <br> <div align="Justify"><font face="Helvetica, Arial, sans-serif"> <b> Those investors who know how to use options have an edge over those who don't.</b></font><br> <br> <font face="Helvetica, Arial, sans-serif">This book is for you, if you are an investor who does your own research and makes your own investment decisions.</font><br> <br> <font face="Helvetica, Arial, sans-serif">This 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.</font><br> <br> <font face="Helvetica, Arial, sans-serif">This 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.</font><br> <br> </div> <div align="Justify"><font face="Helvetica, Arial, sans-serif"> 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</font>. Options volume has surged in recent years as more and moe people take advantage of the risk-reducing properties of options.<br> <br> <font face="Helvetica, Arial, sans-serif">There 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.</font><br> <br> </div> <div align="Justify"><font face="Helvetica, Arial, sans-serif"> 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.</font><br> <center><br><font size="-2"><b><i>Buy the Short Book on Options from Amazon.com<br></i></b> </font><a href="http://www.amazon.com/exec/obidos/ASIN/1403307768/ref%3Dnosim/bestbookbuys00/mdwoptions-20" target = "blank"><img src="http://www.mdwoptions.com/Amazon.gif" width="148" height="34" border="0"></a> </center> <br> <br> <u><b><big>The Short Book on Options: Table of Contents<a name="contents"></a> </big></b></u><br> <b><font face="Helvetica, Arial, sans-serif">Introduction</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"><b> Chapter 1. </b><b>Recent Options Trading</b></font> <b><font face="Helvetica, Arial, sans-serif">History</font></b><br> <font face="Helvetica, Arial, sans-serif"><b>Chapter 2. </b><b>Options Basics<br> </b></font><font face="Helvetica, Arial, sans-serif"> Optionspeak</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What is an option?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> How does an option work?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Options in our daily lives </font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"><b> Chapter 3. </b><b>The <i>Options</i> When Using An Option</b></font><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Exercising the option</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Allowing the option to expire</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Selling the option</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"><b> Chapter 4. </b><b>Stock Options</b></font><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Trading call or put options</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Getting started trading options</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"><b> Chapter 5. </b><b>Why Enter An Option Order?</b></font><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Why would you want to sell a call option?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What do you have to gain? </font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What do you have to lose?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What can go wrong?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Does this strategy really make a difference?</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 6. Let’s Take A Look At The Arithmetic</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Expiration possibilities</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> You made your profit, but what did it cost you?</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 7. How Options Are Priced</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Theoretical value</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 8. The Numbers</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> The tables of data</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 9. Volatility</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Option premium is dependent on implied volatility</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What you can discover from the data. Part 1</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 10. Which Call Option Do You Sell?</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Conservative or aggressive options strategy?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Message One to the buy and hold investor</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> The more conservative positions</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What you can discover from the data. Part 2</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Message Two to the buy and hold investor</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> After the call sale, then what? </font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What if you don’t own stock?</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> What if your stock doesn’t have listed options?</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 11. Rolling The Position </font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Rolling as a defensive move</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Rolling for opportunity </font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 12. Buy Low; Sell High</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Sell stock at a higher price</font><font face="Helvetica, Arial, sans-serif"><br> </font><font face="Helvetica, Arial, sans-serif"> Buy stock at a lower price</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 13. Psychology</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><b><font face="Helvetica, Arial, sans-serif"> Chapter 14. LEAPS</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Long Term Equity AnticiPation Series</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 15. Investment Clubs</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><b><font face="Helvetica, Arial, sans-serif"> Chapter 16. Option Quotes</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><font face="Helvetica, Arial, sans-serif"> Where do you find option quotes?</font><font face="Helvetica, Arial, sans-serif"><br> </font><b><font face="Helvetica, Arial, sans-serif"> Chapter 17. Conclusion</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><b><font face="Helvetica, Arial, sans-serif"> Appendix A. Glossary</font></b><b><font face="Helvetica, Arial, sans-serif"><br> </font></b><b><font face="Helvetica, Arial, sans-serif"> Appendix B. Calculations</font></b><font face="Helvetica, Arial, sans-serif"><br> <br></b> </div> <br/><br/><br/><a href="http://www.mdwoptions.com/loans.html"> <font size="-1">Access to Loans Essential in Volatile Economy, Markets</font> </a> <br><center> <script type="text/javascript"> </script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </center><br> Questions? Comments? Use the Contact Us tab at top of page.<br>We value your privacy and will NEVER give out your e-mail address to anyone, for any reason.</font> <center> <a href="mailto:mark@mdwoptions.com"></a></center> </a> <br></center> </div> </div> </center> <script type="text/javascript"> var gaJsHost = (("https:" == document.location.protocol) ? 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