Understanding Options
Understanding Options is an investing classic with new facts, charts, and strategies to help you beat today’s tough markets. It provides all the basics you need to get started in the increasingly popular options market. Important new material includes overcoming assignment anxiety, LEAPS, the Greeks, protective and married puts, the collar, credit and debit spreads, straddles, the strangle, and options tips. Through this book, you'll learn what options are and how they work, their pros and cons, their relationship with stocks, and how to use them to gain leverage, generate extra income, and protect against adverse price movements.
This go-to guide has brand new information and features, including:
Updated facts, charts, and figures
Expanded coverage of collars, credit and debit spreads,
mini-options, the Greeks, and protective puts
A critical look at trading options on ETFs
Table of Contents
Chapter Opening
Part One
Part Two
The Joy of Selling (Writing) Covered Calls
How to Choose the Right Covered Call
Step-by-Step: Selling Covered Calls
Managing Your Covered Call Position
Assignment: Your Obligation to Sell
Part Three
Introduction to Call Strategies
How to Choose the Right Call Option
Volatility and Options Pricing
Step-by-Step: Buying Calls
Managing Your Call Position
Exercise: Your Right to Buy
Part Four
How to Choose the Right Put Option
Managing Your Put Position
Protective and Married Puts
The Collar
Part Five
Credit and Debit Spreads
Buying Straddles and Strangles
Selling Cash-Secured and Naked Puts
Trading Options with ETFs, Indexes, Weeklys, and Mini-Options
Advanced Strategies
Part Six
Sheldon Natenberg: Professional Options Trader
Where to Get Help
Lessons I Learned About Options
Acknowledgments
About the Author