The Complete Guide to Option SellingSelling 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. |
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 |
Index | 239 |
About the Authors | 247 |
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Common terms and phrases
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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...