Learn to use options from veteran option trader Mark D. Wolfinger, who spent more than 20 years on the floor of the Chicago Board Options Exchange (CBOE). If you’re a seasoned stock trader or a casual investor who dabbles in mutual funds, this book is for you. If you’re already trading options, this book is also for you. You will gain a thorough understanding of option pricing, function and equivalents, which will help you trade more effectively.
Many people dabble in options without really understanding how they work and how they can be used most effectively. The Rookie’s Guide to Options gives you the basic trading tools you need to start trading options, as well as help you move on to more advanced strategies. This book will help you learn to use options they way they were originally intended: to manage risk and potentially increase profits. You’ll be guided step-by-step as the author walks you through the decision-making process in terms of puts, calls, strike prices, expiration dates and strategic equivalents.
You’ll see how to adopt basic options strategies, how to use them to potentially earn profits and how to manage risk effectively. You’ll move on to learn about the versatility of options and master advanced strategies. Learn how you can use options to:
- Potentially sell your stock above market value
- Turn a non-performing stock into an investment with potential
- Protect your holdings against a disastrous bear market and possibly profit in a bear market
- Attempt to generate steady income
- Manage risk
- Possibly earn profits more often than those who buy only stock
- Limit losses
- Own investments that may possibly earn a profit when the market moves higher or lower
The Rookie’s Guide to Options shows you how you can get the most out of these versatile tools to protect your investments, possibly create steady income and potentially generate substantial profits.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.