Learn trading ideas & strategies from TradeKing's experts

Upcoming Live Events
More live events...
Learn it. Trade it.

Open your TradeKing account today!

Upcoming Live Events
More live events...

Options as a Strategic Investment

by Lawrence G. McMillan

Buy this book

The market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments. This updated and revised Fourth Edition of the bestselling options book of all time gives you the latest market-tested tools for improving the earnings potential of your portfolio while reducing downside risk - no matter how the market is performing.

Inside this expanded edition are scores of proven techniques and business-tested tactics for investing in many of the innovative new options products available. Here’s some of what you’ll find inside:

  • 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 your overall profit picture
  • Detailed guidance for investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and how to hedge them with common and regular options
  • An extensive overview of futures and futures options; and much more

Written especially for investors who have some familiarity with the option market, this comprehensive reference also shows you the concepts and applications of various option strategies - how they work, in which situations, and why ... techniques for using index options and futures to protect your portfolio and improve your return...and the implications of the tax laws for option writers, including allowable long-term gains and losses. In addition, detailed examples, exhibits and checklists show you the power of each strategy under carefully described market conditions.

“The options world has a lot to offer investors and traders alike, but it can be dauntingly hard to understand. Since its original publication, Options as a Strategic Investment has answered many a question; and each succeeding edition has answered many more. It is the options reference in our office.” - John Bollinger, CFA, CMT, President, Bollinger Capital Management

“Larry McMillan’s Fourth Edition of Options as a Strategic Investment is a must read. This latest version of his original classic presents his latest thinking on options. McMillan is truly the master of his field.” - John Murphy, President, Murphy Morris, Inc.

“Larry’s book is the bible of the options community. It has established the benchmark by which all other option books are compared - and none measure up.” - Alex Jacobson, Vice President, International Securities Exchange

Option strategies entail risk and are not appropriate for everyone. Before trading options, you should review Characteristics and Risks of Standardized Options. Some option strategies involve multiple positions simultaneously. These multi-leg strategies incur additional commissions and may invoke special treatment when preparing your taxes. If you are unsure about how a particular strategy may impact your financial picture, please consult a tax professional before trading.

Related Strategies

417 Front Spread w/ Calls Image
Front Spread with Calls Buying the call gives you the right to buy stock at strike price A. Selling the two calls gives you the obligation to sell stock at strike price B if the options are assigned. This strategy enables...

413 Short Straddle Image
Short Straddle A short straddle gives you the obligation to sell the stock at strike price A and the obligation to buy the stock at strike price A if the options are assigned. By selling two options, you...

414 Short Strangle Image
Short Strangle A short strangle gives you the obligation to buy the stock at strike price A and the obligation to sell the stock at strike price B if the options are assigned. You are predicting the stock price...

More strategies...

All-Star Analysis

610 Watchlist on 01/04/2011

1720 Volatility: The Secret to Understanding your Options Strategy on 01/02/2011

Recalculating the VIX on 11/03/2014
Heads up, VIX watchers and VIX-options-traders: the CBOE has recently changed how it calculates the VIX. Previously they only used monthly...

More analysis...

On-Demand Videos

Option Strategies for the Downside

Dan Sheridan takes a break from his usual discussion of income generation and focuses on the alternate universe of...

Buying A Protective Put To Reduce Risk

Brian Overby discusses how buying a protective put can help reduce the downside risk while still maintaining upside...

Exploring Volatility Index Options

Trading volatility is an interesting way to expand your trading and move away from the comfort zone known by most...

More videos...