Kinahan Essential Option Strategies

Understanding the Market and Avoiding Common Pitfalls
1. Auflage 2016
ISBN: 978-1-119-29154-1
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 336 Seiten, E-Book

Learn the ins-and-outs of options trading with clear, practical guidance
Essential Option Strategies is an introductory guide to options trading, designed to help new options traders better understand the market and the potential opportunities that exist. This book is designed to bring you up to speed with current practices and help you implement your own option trading strategies. You'll create a plan, track indicators, and understand underlying instruments, then apply that central investing knowledge directly to the options market. The discussion on pricing determinants and probabilities uses an intuitive approach to complex calculations, providing clear examples with no advanced math required, and extensive explanation of spreads, butterflies, and condors brings advanced strategies down to earth. Easy-reference appendices clarify the Greek terms and technical analysis charts, while focused discussion and expert insight throughout provide a highly informative crash course on options trading.
Options trading has undergone a rapid evolution beyond stocks and commodities into asset classes including fixed-income, precious metals, energy, and more. This book helps you build a solid foundation in the fundamentals, giving you a knowledge base that applies no matter how the instruments change. This book is designed to help you:
* Understand the options market inside and out
* Avoid common mistakes
* Learn some basic positions, and trades
* Read charts and interpret probabilities
Once the domain of the elites, the options market has been thrown wide open thanks to real-time price quotes, through brokerages, and the free flow of information online. The process of buying and selling options contracts is faster and more efficient than ever, and Wall Street is facing stiff competition from independent analysts and financial websites. As much as the market has changed, the fundamentals are the same--and Essential Option Strategies aims to provide expert guidance throughout the learning process.

Autoren/Hrsg.

Kinahan, J. J.

Inhaltsverzeichnis

Introduction
Acknowledgments
About the Author
Part I: Getting Started in Investing
Chapter 1: The Opening Bell
Probabilities
Getting Started
Research
Data
Charts
Commissions and Fees
Virtual Trading Platforms
Chapter 2: First Days of Trading
Brief History of Stock Market Averages
Key Market Indexes Today
The Volatility Index
Futures
The Bond Market
Fed Watch
Economic Indicators
Earnings
Find Your Niche
Chapter 3: Know the Underlying
Where Do Options Trade?
Stock Talk
Exchange-Traded Funds
Short Selling
On the Margin
Chapter 4: Avoiding Mistakes
Position Size
Volume and Liquidity
Order Entry Techniques
Understand Risk
Part II: The Options Market
Chapter 5: Options Basics
Stock Options
Option Value
Exercise and Assignment
Volume and Open Interest
Index Options
Chapter 6: Intro to Call Options
Call Options versus Stock
Risk and Reward of Long Call
Real-World Example
Short Calls
Index Call Options
Chapter 7: Intro to Put Options
Long Puts versus Short Selling
Risk and Reward
Real-World Example
Protective Puts
Index Put Options
Chapter 8: Components of Options Prices
Delta Defined
Strike Price
Time Decay
Implied Volatility
Dividends
Interest Rates
Put-Call Parity
Chapter 9: Probabilities
Probabilities 101
Probability of Profit
Probability of Touching
Example
Delta to Measure Probabilities
Part III: Strategies and Positions
Chapter 10: Covered Calls
The Covered Call
Example
Chapter 11: Cash-Secured Puts
Short Puts
Example
Chapter 12: Long Vertical Spreads
Bull Call Spread
Example
Bear Put Spread
Example
Chapter 13: Short Vertical Spreads
Short (Bull) Put Spread
Example
Short (Bear) Call Spread
Example
Chapter 14: Calendar Spreads
Call Calendar Spread
Example
Put Calendar Spread
Example
Chapter 15: Butterfly Spreads
Butterfly Spread
Example
Iron Butterfly Spread
Example
Chapter 16: Condor Spreads
Condor Spread
Example
Iron Condor Spread
Example
Chapter 17: Final Bell
Risk Management
Option Orders
Using Options to Reduce Capital Commitment
Rolling with Spread Trades
Investing and Social Media
Final Thoughts
Appendix A: The Greeks
Appendix B: Strategy Recap
Appendix C: Charts and Volatility Studies
Glossary
Index

Über Autor(innen)

JJ KINAHAN is Chief Strategist and Managing Director for TD Ameritrade. A thirty-year trading veteran and a Forbes contributor, he began his career as a Chicago Board Options Exchange (CBOE) market maker trading in the S&P 100 (OEX) and S&P 500 (SPX) pits. After leaving the floor, he joined thinkorswim, later purchased by TD Ameritrade, where he led initiatives on trading tools and education for retail clients.