Thomsett The Complete Options Trader

A Strategic Reference for Derivatives Profits
1. Auflage 2018
ISBN: 978-3-319-76505-1
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 253 Seiten

Reihe: Progress in Mathematics

Options traders rely on a vast array of information concerning probability, risk, strategy components, calculations, and trading rules. Traders at all levels, as well as portfolio managers, must refer to numerous print and online sources, each source only providing part of the information they need. This is less than ideal, as online sources tend to be basic, simplified, and in some cases incorrect. Print sources, on the other hand, are mostly focused on a very narrow range of strategies or trading systems. Up until now, there has been no single source to provide a comprehensive reference for the serious trader.The Complete Options Trader is that much-need comprehensive reference, a compilation of the many attributes options traders need.Thomsett lays out a rich and complete guide to 100 strategies, including profit and loss calculations, illustrations, examples, and much more. A thorough evaluation of these strategies (and the rewards and risk involved) demonstrates how a broad approach to analytically using options can and does enhance portfolio profits with lower levels of risk.The book also features a complete glossary of terms used in the options industry, the most comprehensive glossary of this nature currently available.All too often, the attributes of options trading are poorly understood; risk is ignored or over-simplified; hedging is not folded into a strategic evaluation; and options traders shun the value of holding equity positions. No longer-if options traders rely on this comprehensive guide as the reference for the industry.


Michael C. Thomsett has been writing for a living since 1978 and has published more than 90 books. These include 12 options books. His bestselling Getting Started in Options has been published in nine editions and sold more than 300,000 copies. He also has developed and presented options webinars, and coaches on a live trading room every day and is a frequent speaker at trade shows and investment conventions. He blogs on his website, https://thomsettsguide.com/ Seeking Alpha, Options Money Maker, and social media.

Autoren/Hrsg.

Thomsett, Michael C.

Inhaltsverzeichnis

1;Contents;5
2;List of Figures;6
3;List of Tables;8
4;Introduction;9
5;Market Overview;13
5.1;The History of Options Trading;13
5.2;Basics of Options—Standardized Terms;19
5.2.1;Types: Calls and Puts;19
5.2.2;The Underlying Security;20
5.2.3;Strike Price;22
5.2.4;Expiration;22
5.3;The Option Premium and Its Components;23
5.3.1;Time Value;23
5.3.2;Volatility;23
5.3.3;Intrinsic Value;26
5.4;Strategy Ranges;28
5.4.1;Single-Option Speculative Strategies;28
5.4.2;Covered Calls;29
5.4.3;Spreads;30
5.4.4;Straddles;30
5.4.5;Synthetic Positions;31
6;Market Risks;33
6.1;Market and Volatility Risk;35
6.1.1;Market Risk of Option Trading;35
6.1.2;Variation of Option Strategy Risk Levels;38
6.2;Covered Call Risks;39
6.3;Lost Opportunity Risk;40
6.4;Moderate and Neutral Strategies;41
6.5;Inflation and Tax Risk;43
6.5.1;Inflation Risk;43
6.5.2;Tax Risk;44
6.5.3;The Double Hit—Inflation and Taxes;46
6.6;Portfolio Risks;47
6.6.1;Collateral and Margin Risk;48
6.6.2;Liquidity Risk;49
6.7;Knowledge and Experience Risk;50
6.8;Diversification and Asset Allocation Risk;52
6.9;Other Forms of Risk;53
6.9.1;Leverage Risk;53
6.9.2;Alpha and Beta Risk;54
6.10;Fundamental Risk;55
6.10.1;Acquisition and Merger Risk;55
6.10.2;Reputation or Bankruptcy Risk;56
6.10.3;Earnings Surprises;57
6.11;Confirmation Bias Risk;59
7;Option Strategies;62
8;Option Glossary;144
9;Elements of Value;205
9.1;Proximity and Price;206
9.2;Expiration and Option Valuation;209
9.3;Interest and Dividends;212
9.4;Stock Selection as Part of the Option Value Equation;213
9.5;Basic Investment Value of Stock;214
9.6;Selection of Appropriate Option Positions;215
10;Return Calculations;219
10.1;Expected Return and Pricing Models;219
10.2;Annualized Return;221
10.3;Strike Selection for Covered Calls;224
10.4;Return If Exercised or Unchanged;226
10.5;Return If Closed;229
11;Options and Stock Selection;233
11.1;Diversification by Risk Profile;234
11.2;Fundamental Selection Indicators;236
11.3;Technical Selection Indicators;239
12;Option Taxation;242
12.1;Capital Gains and Losses;242
12.2;Qualified and Unqualified Covered Calls;244
12.3;Rules for Offsetting Positions;245
12.4;Strategic Considerations;246
13;Index;248