The options trading primer : using rules-based option trades to earn a steady income / Russell A. Stultz.

Format:

Book

Author/Creator:

Stultz, Russell A., author.

Language:

English

Subjects (All):

Options (Finance).

Physical Description:

1 online resource (xii, 245 pages) : illustrations

Edition:

1st ed.

Place of Publication:

New York : Business Expert Press, [2020]

Summary:

This book introduces options and how they work-to those who are ready to learn how they work, as well as emphasizes the application of time-tested option trading rules. Buying and selling options is the fastest growing investment strategy when compared with other trading venues such as buying and selling stocks, futures, and foreign exchange currencies. Millions of investors who understand the financial leverage offered by options are earning impressive, steady incomes by buying and selling call and put options. The successful investors learn how options work. They develop watch lists of trade candidates and study price charts to find prospective trades. And they apply rules-based option trading strategies that succeed much more often than they fail. Even when they lose, their rules limit their losses to acceptable levels. This book was written by a successful option trader. He introduces options and how they work to those who are ready to learn how they work. The book emphasizes the application of time-tested option trading rules. These rules use price charts, market volatility, key option values, and risk graphs to achieve high-probability option trading outcomes. The book also details ten option trade examples that include trade setups, entries, trade management techniques, and supporting illustrations.

Contents:

Cover

The Options Trading Primer

Contents

Preface

Acknowledgments

Chapter 1: Introduction

A Brief History of Options

Why We Trade Options

Chapter 2: Understanding Call and Put Options

Calls and Puts

The Option Contract: Buyer and Seller Obligations

Market Makers and Electronic Communications Networks

Chapter 3: The Option Trading Process

Developing Watch Lists

Scanning the Underlying

Examining Price Charts

Determining Supply and Demand

Developing Your Trading Bias

Chapter 4: Using the Option Chains

Examining and Using Option Chains

At the Money, In the Money, Out of the Money Review

Buying, Selling, and Buying and Selling

Using the Order Bar

Setting Up a Bracketed Trade on an Order Bar

Examining an Order Confirmation

Adding and Removing Option Chain Columns

Adjusting the Number of Strike Rows

Bid, Ask, and Mark

Open Interest (Liquidity)

The "Greeks" (Gamma, Delta, Theta, Vega, Rho)

American and European Expiration-Style Options

Exercising Options, Assigning Options, and the Function of the OCC

Option Strategy Selection and Terminology

Caution: Never Slide Protective Stops to Save a Bad Trade!

Chapter 5: Rules-Based Trading

Option Trading Levels (Permissions)

Setting Up and Scanning Multiple Price Charts

Rules-Based Trading

Examining Risk Profiles

Rolling Up, Down, and Out

Chapter 6: Hands-On Option Trading Activities

Common Option Strategies

Final Comments

Glossary

About the author

Index

Ad Page

Back Cover.

Notes:

Description based on print version record.

ISBN:

1-949991-67-9