The Complete Guide to Option Selling

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McGraw Hill Professional, Jan 20, 2005 - Business & Economics - 257 pages

Selling naked options, long considered profitable for professional traders but too risky for most investors, has been surging in popularity. The Complete Guide to Options Selling avoids dry, complex theory and jargon in favor of a simple, direct approach that sophisticated investors can use to produce surprisingly consistent results with only slightly increased risk. This down-to-earth book explains how to apply market fundamentals--while avoiding common options trading mistakes--to make options selling a profitable part of any portfolio strategy.

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User Review - Flag as inappropriate

great book....... one should always remember to read this book before getting into options...
and i got idea about this book as the author of this book was interviewed on CNBC and i got that .. and searched for it
and got it very very useful........
PRATIK LALKA ,
-GREAT INDIA

User Review - Flag as inappropriate

Focus mostly on futures options selling, only touches briefly on equity options.

Selected pages

Contents

Part II Option Selling Strategy and Risk Control
51
Part III Market Analysis and Option Selling
131
Part IV Getting Started
195
References
235

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Common terms and phrases

Popular passages

Page 31 - An option is the right, but not the obligation, to buy or sell a particular asset (eg, stocks, bonds, commodities or futures contracts) at a specified price on or before a certain expiration date. A call option gives the buyer the right to buy...
Page 63 - Internet) can be found in the Resources section at the end of this book.
Page 48 - SPAN is a formula set by the exchanges and is based on the time value left on the option, the amount by which the option is in or out of the money, and the volatility of the underlying contract.
Page 23 - A futures contract is an agreement to buy or sell a specified commodity in a specified amount at a specified date.
Page 156 - There are two basic types of coffee, arabica and robusta. Arabica coffee tends to have a milder flavor and usually is grown at higher attitudes.
Page 9 - This sounds like common sense, but you would be surprised at the number of traders who try to bet against a trend.
Page 48 - The dollar amount of the premium plus 20 percent of the underlying security value minus the amount by which the option is out of the money (if any).
Page 241 - New York Mercantile Exchange World Financial Center One North End Avenue New York, NY 10282-1101...

About the author (2005)

James Cordier is president and head trader of Liberty Trading Group, managing assets for a worldwide client base. Cordier is regularly quoted in financial media including the Wall Street Journal, Bloomberg News, and Barron's. His weekly market commentary is published on several major investment websites.

Michael Gross is director of research at Liberty Trading Group. An active broker, he is involved in writing the firm's research reports and has been quoted in Bloomberg News. Along with Cordier, his articles have appeared in Futures and Yahoo Finance.

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