Download or read book Synthetic Stock the Risk Alternative for Option Traders written by Michael C. Thomsett and published by FT Press. This book was released on 2010-08-31 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to use options to dramatically reduce the market risk that represents your #1 concern as a trader. Market risk is the trader’s single biggest concern when buying stock. If you put money into shares, you risk losing much of it when the market goes down. You cannot completely eliminate market risk. However, you can use options to create synthetic positions that vastly reduce it. You can create a position that will virtually duplicate a stock’s behavior, for a fraction of the cost....

Download or read book Synthetic Stock the Risk Alternative for Option Traders written by and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Perfect Swing Trading Alternative for Option Traders written by Michael C. Thomsett and published by Pearson Education. This book was released on 2010-06-14 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Options: a key component of today’s most powerful swing trading strategies. Options, those high-risk, short-lived, and speculative instruments, can be used as a valuable alternative in swing trading strategies designed to move in and out of stock positions based on very short-term price movement. Options’ flexibility allows you to use either calls or puts, to go long or short, vary the number of contracts, or combine different approaches based on market conditions.

Download or read book Commodity Options written by Carley Garner and published by FT Press. This book was released on 2009-01-23 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Don’t Miss out on Today’s Hottest Trading Arena: Commodity Options! “The authors have written the definitive work on trading commodity options. Their in-depth knowledge of this subject is legendary among industry professionals and expert traders alike, and their ability to relay their knowledge through text, pictures, and the spoken word is unparalleled in our industry.” –Lan Turner, CEO, Gecko Software, Inc. “This book captures the realities of commodity option trading in a simple and easy- to-read presentation that will be beneficial for traders of all sizes and skill levels.” –Chris Jarvis, CFA, CMT, Caprock Risk Management, LLC “Even the most experienced investors often overlook the fact that options on futures are fundamentally different from options on stocks. This book fills that gap and sets the record straight with clear and concise descriptions that are easy to understand. Guaranteed to become a true source of value creation for anyone interested in trading commodity options.” –Jeff Augen, author, The Volatility Edge in Options Trading “Commodity Options arms readers with the strategies and tactics needed to take a more active approach to managing risk in today’s turbulent markets. The authors exhaustively break down every component of a commodity option to its lowest common denominator, making this book an essential piece of information for those looking to expand their trading tool box or further build on existing option strategies.” –John Netto, Chief Investment Strategist, NetBlack Capital and author, One Shot–One Kill Trading Investors worldwide are discovering the enormous opportunities available through commodity options trading. However, because commodities have differing underlying characteristics from equities, commodity ­options behave differently as well. In this book, two of the field’s most respected analysts present strategies built from the ground up for commodity options. Carley Garner and Paul Brittain begin with a quick primer on how commodity options work, how they evolved, and why conventional options strategies often fail in the commodity options markets. Next, using detailed examples based on their own extensive research, they show how to leverage the unique characteristics of commodity options in your own trades. You’ll walk through trades from “top to bottom,” master both long- and short-option approaches, and learn powerful strategies usually ignored in options books. For example, the authors introduce synthetic swing trading strategies that systematically reduce volatility from the market. This book’s easy-to-use trading strategies are strategically employed by the author’s clients every day: With Commodity Options, you can work to put the odds in your favor, too! • Why commodity options are different—and what it means to you Understand key differences in the underlying assets and the logistics of market execution • Systematically rewrite the odds in your favor Four ways to make winning trades more likely—and losing trades less common • When to trade short options—and how to manage the risk Why careful option selling may improve your odds of success • Master strategies designed for diverse market conditions Combine long and short options to create the right strategy for any market opportunity • Exploit short-lived trends through “synthetic” swing trading Get the advantages of futures contracts without the volatility

Download or read book Options Strategies for the Agile Investor Collection written by Michael C. Thomsett and published by Pearson Education. This book was released on 2010-12-07 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the eBook version of the printed book. 7 breakthrough options trading strategies – with everything you need to know to apply them! Seven options strategies every savvy trader needs to master — each presented concisely, with real-world guidance from a world-class expert! Discover powerful swing trading alternatives… strategies utilizing low risk-spreads… better ways to pick covered calls… how to compare investments through ranking analysis… how to use short puts and synthetic stock… even how to recover from losses! From world-renowned leaders and experts, including Michael Thomsett and Sergey Izraylevich

Download or read book The Short Put a Worthwhile Cash Cow written by Michael C. Thomsett and published by Pearson Education. This book was released on 2010-06-30 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to use short puts to earn consistent profits with surprisingly limited risk. You may know all about covered and uncovered call writing and the degrees of risk involved. But the uncovered put belongs in your arsenal as well. The short put offers great profit potential with limited risk. However, short puts are overlooked by many traders. Puts cannot be covered like short calls, but short put risks are lower because a stock’s price cannot fall indefinitely....

Download or read book The Option Trader s Hedge Fund written by Dennis A. Chen and published by FT Press. This book was released on 2012 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, a hedge fund manager and an option trading coach show you how to earn steady, reliable income selling options by managing your option trades and running your option portfolio as a real business with consistent, steady returns. Packed with real-world examples, the authors show you how to manage your own "one man" hedge fund and make consistent profits from selling options by applying the basic framework and fundamental business model and principles of an "insurance company". This framework helps you to apply your option trading strategy to a solid, predictable, business model with consistent returns. For someone who has some knowledge of trading options and wants to become a consistent income earner. The authors provide a complete "operations manual" for setting up your business. Gain pearls of wisdom from both a professional options trader and coach, and from a hedge fund manager focused on managing an options based portfolio.

Download or read book Why Trade Options written by Mark D. Wolfinger and published by FT Press. This book was released on 2012-01-20 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an era where “buy and hold” investment strategies no longer work, investors desperately need portfolio protection. Fortunately, it’s available—in the form of options. In Why Trade Options? top trader and options instructor Mark D. Wolfinger shows how options can be used conservatively, to systematically reduce risk and protect assets. Wolfinger explains the choices that options provide to cautious investors and explains the tradeoffs associated with each alternative. You’ll learn how to use “protective” (a.k.a. “married”) puts to buy complete protection at a higher price—and how to use covered calls to gain more modest protection, without paying a dime out of pocket. Wolfinger shows how to use simple “collars” to gain more protection at lower cost and helps you use options-based “stock replacement” strategies to lock in stock profits (while objectively considering the tax implications). Nowadays, intelligent investors need to address risk as much as return. Why Trade Options? gives them powerful tools for doing just that.

Download or read book Option Trading Loss Recovery Strategies written by Michael C. Thomsett and published by Pearson Education. This book was released on 2010-06-30 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: How options can help you recover losses in stock investments you still want to keep. In volatile markets, inevitable paper losses tie up capital and prevent you from moving ahead. So what do you do? Do you just wait and hope the market price rebounds? Do you cut your losses and move your cash to more promising stocks? Or are there other choices? If you still consider the company a worthwhile investment, you can use options as part of a recovery strategy.

Download or read book Assessment of Options Investments by Ranking Analysis written by Sergey Izraylevich Ph.D. and published by Pearson Education. This book was released on 2010-07-29 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: A powerful new technique for evaluating the profit potential of complex option combinations with nonlinear payoffs. Why is an additional analytic tool needed? Generally, evaluation of investment decisions is based on comparing realized profits (variability, drawdown, and other risk measures) with their corresponding expected values. While such an approach is appropriate for financial instruments possessing linear payoff functions, it has numerous drawbacks when applied to evaluating complex option combinations with nonlinear payoffs....

Download or read book Risk Evaluation and Financial Crises written by Vadim Tsudikman and published by Pearson Education. This book was released on 2011-07-13 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: The classification, measurement, and management of risk are central problems in the investment process. Over the past 25 years, Value at Risk (VaR) became the common universal standard in risk measurement. However, the financial crisis of 2007/2009 clearly demonstrated great discrepancies in risk estimates based on this indicator. In this report, three of the field’s leading experts objectively consider each key criticism of VaR in recent professional literature, including VaR’s underestimation of the magnitude and frequency of extreme outcomes, the difficulty of obtaining reliable VaR estimates for complex portfolios, the limited value of historical data, imperfections in the effective market hypothesis that underlies VaR, and several more. Next, the authors carefully review refinements and alternatives that have been proposed as potential replacements or complements, including Conditional VaR (Expected Shortfall), Shock VaR, modifications in the handling of parameters uncertainty, liquidity adjustment, higher moments, and more. They conclude by discussing why a sound risk management system continues to require deep understanding of complex adaptive and often irrational market mechanisms and still cannot be reduced to a mere combination of indicators, no matter how sophisticated they are.

Download or read book Adjusting Margin and Risk written by Carley Garner and published by FT Press. This book was released on 2010-06-18 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Use futures and options to reduce margin requirements and alleviate margin calls--without liquidating holdings or adding funds to your trading account! Margin calls are the necessary evil of trading leveraged instruments. Without margin, speculators would be subject to substantial default risk in addition to the risk of market losses. Unfortunately, many traders allow the fear of a margin call to drive their strategy. Margin calls don’t have to be a horrifying experience. There are tactics you can use to avoid them--or avoid scrambling to meet them.

Download or read book Option Volatility Pricing Advanced Trading Strategies and Techniques written by Sheldon Natenberg and published by McGraw Hill Professional. This book was released on 1994-08-22 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to reflect the most current developments and trends in option products and trading strategies. Featuring: Pricing models Volatility considerations Basic and advanced trading strategies Risk management techniques And more! Written in a clear, easy-to-understand fashion, Option Volatility & Pricing points out the key concepts essential to successful trading. Drawing on his experience as a professional trader, author Sheldon Natenberg examines both the theory and reality of option trading. He presents the foundations of option theory explaining how this theory can be used to identify and exploit trading opportunities. Option Volatility & Pricing teaches you to use a wide variety of trading strategies and shows you how to select the strategy that best fits your view of market conditions and individual risk tolerance. New sections include: Expanded coverage of stock option Strategies for stock index futures and options A broader, more in-depth discussion volatility Analysis of volatility skews Intermarket spreading with options

Download or read book High Performance Options Trading written by Leonard Yates and published by John Wiley & Sons. This book was released on 2004-04-16 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essential resource for the successful option trader High Performance Options Trading offers a fresh perspective on trading options from a seasoned options trader programmer/engineer, Leonard Yates. Drawing on twenty-five years of experience as an options trader and software programmer, Yates has written this straightforward guide. First he provides readers with a solid foundation to trading options, including an introduction to basic options terminology, a thorough explanation on how options are traded, and specific trading strategies. Accompanied by the OptionVue Educational website, this hands-on guide to the options market is a thorough and essential resource for any trader looking to increase his or her practical knowledge of options.

Download or read book Trading Options as a Professional Techniques for Market Makers and Experienced Traders written by James Bittman and published by McGraw Hill Professional. This book was released on 2008-11-09 with total page 382 pages. Available in PDF, EPUB and Kindle. Book excerpt: The options market allows savvy investors to assume risk in a way that can be very profitable, if the right techniques are used with the proper insight. In Trading Options as a Professional, veteran floor trader James Bittman provides both full-time and professional traders with a highly practical blueprint for maximizing profits in the global options market. This peerless guide helps you think like a market maker, arms you with the latest techniques for trading and managing options, and guides you in honing your proficiency at entering orders and anticipating strategy performance. Most importantly, it gives you access to one of the world's leading educators and commentators as he candidly defines the seven trading areas that are essential for successful options traders to master: Option price behavior, including the Greeks Volatility Synthetic relationships Arbitrage strategies Delta-neutral trading Setting bid and ask prices Risk management You will benefit from Bittman's exceptional understanding of volatility, his perceptive examples from the real world, and the dozens of graphs and tables that illustrate his strategies and techniques. Each chapter is a complete, step-by-step lesson, and, collectively, give you the best toolbox of profit-making solutions on the options trading floor. In addition, Trading Options as a Professional comes with Op-Eval Pro, a powerful software that enables you to analyze your trades before you make them by calculating implied volatility, graphing simple and complex options strategies, and saving analyses to review later. Don't be left guessing on the sidelines--trade with the confidence of a market maker by following the road map to higher profits in Trading Options as a Professional.

Download or read book Practical Considerations in Picking the Covered Call written by Michael C. Thomsett and published by FT Press. This book was released on 2010-06-14 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why covered calls are so popular, how they limit your risks, and how to use them successfully. Most traders who consider options have heard of the popular strategy, the covered call. This is a very safe options strategy because it produces a profit better than just owning stock in most possible outcomes. A “covered” call exists when you own 100 shares of the underlying stock, and sell a call....

Download or read book Advanced Options Trading written by Kevin M. Kraus and published by McGraw Hill Professional. This book was released on 2009-11-20 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: As an active trader in today’s market, you are faced with unprecedented challenges. Dramatic price swings in equity, debt, and currency have made it tougher than ever to manage and trade risk. But with great risk, of course, comes great opportunity—and Advanced Options Trading delivers a detailed system for successfully trading options in a highly volatile and unpredictable global market. Noted options educator and owner of his own brokerage house, Kevin M. Kraus explains the best practices for using options to capture premium, reduce equity purchase prices, manage the costs of buying options, and control portfolio risk—critical skills for finding steady profits in our ever-shifting economic landscape. He offers a close examination of the nature of volatility and what it means for investors, whether they’re just getting started or are veterans of the options market. Advanced Options Trading covers: The critical nature of forward-looking implied volatility Ways to level the volatility playing field with options Techniques for adding value to a portfolio while managing risk The functions of price hedging—and how to do it effectively Interest rate options and which factors drive debt markets Options analysis techniques Options are among the most valuable tools for hedging and risk management, and they also function as profitable investment vehicles, allowing you to make bearish trades through radical market shifts. Advanced Options Trading provides a solid foundation on the options market, along with the necessary skills for trading and managing risk in today’s constantly expanding and contracting market.