Options as a Strategic Investment is a bestselling guide providing the latest market-tested tools on how to enhance your earnings. Not just that, but this book will also help decrease the downside risk on whatever situation the current market is on. Inside Options as a Strategic Investment are scores of business-tested tactics and proven techniques if you are investing in many of the innovative new options products available in the market today. This comprehensive book will serve as a reference on the application and concepts of different option strategies. Detailed examples, exhibits, and checklists are also provided to show you the power of each strategy under carefully described market conditions.
Here's what you'll find inside this book:
A complete and in-depth discussion of the newest class of listed volatility derivatives, both futures and options
Portfolio protection techniques explained in depth, using broad-based index put options or the more modern approach—volatility call options
New and updated examples and tables, using the current option symbology, lower commission rates, decimalization of prices, portfolio margin, and weekly options
Updated strategy techniques using synthetic straddles, iron condor spreads, backspreads, put ratio spreads, and dual calendar spreads
Buy and sell strategies for Long Term Equity Anticipation Securities (LEAPS)
A thorough analysis of neutral trading, how it works, and various ways it can improve readers' overall profit picture
Detailed guidance for investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and how to hedge them with common and regular options
Table of Contents
How to Use This Study Guide
Lesson 1 Definitions
Lesson 2 Covered Call Writing
Lesson 3 Call Buying
Lesson 4 Other Call Buying Strategies
Lesson 5 Naked Call Writing
Lesson 6 Ratio Call Writing
Lesson 7 Bull Spreads Using Call Options
Lesson 8 Bear Spreads Using Call Options
Lesson 9 Calendar Spreads
Lesson 10 The Butterfly Spread
Lesson 11 Ratio Call Spreads
Lesson 12 Combining Calendar and Ratio Spreads
Lesson 13 Reverse Spreads
Lesson 14 Diagonalizing a Spread
Lesson 15 Put Option Basics
Lesson 16 Put Option Buying
Lesson 17 Put Buying in Conjunction with Common Stock Ownership
Lesson 18 Buying Puts in Conjunction with Call Purchases
Lesson 19 The Sale of a Put
Lesson 20 The Sale of a Straddle
Lesson 21 Synthetic Stock Positions Created by Puts and Calls
Lesson 22 Basic Put Spreads
Lesson 23 Spreads Combining Calls and Puts
Lesson 24 Ratio Spreads Using Puts
Lesson 25 Long-Term Option Strategies
Final Examination
Final Examination Answers