Your Options Handbook – The Practical Reference and Strategy Guide to Trading Options

<p>Foreword xi</p>
<p>Preface xv</p>
<p>Acknowledgments xxvii</p>
<p>CHAPTER 1 Market Basics and Market Mechanics: What Is Going On and How Does It All Work? 1</p>
<p>The Markets 1</p>
<p>Sectors and Industries 9</p>
<p>ETFs A Different Kind of Investment 12</p>
<p>Final Thoughts 16</p>
<p>CHAPTER 2 Data That Moves the Markets: The First Step in Your Analysis 17</p>
<p>Data and Sentiment 18</p>
<p>Economists, Predictions, and Indicators 18</p>
<p>Economic Indicators 21</p>
<p>Key Indicators to Watch 27</p>
<p>Final Thoughts 43</p>
<p>CHAPTER 3 Fundamental and Technical Stock Analysis and Tools: The Second Step in Your Analysis 45</p>
<p>Introduction to Fundamental Analysis 46</p>
<p>Digesting the News 57</p>
<p>Cheap versus Value 61</p>
<p>Mergers and Acquisitions for the Everyday Options Trader 64</p>
<p>The Wisdom (or Lack Thereof) of Crowds 65</p>
<p>Trading Tactics and Technical Analysis 67</p>
<p>Plans of Attack 93</p>
<p>New Trader Tips 101</p>
<p>Top 10 Things Professionals Do That the Average Retail Trader Doesn t 104</p>
<p>Final Thoughts 106</p>
<p>CHAPTER 4 Options Basics: Techniques and Fundamentals to Master Before Applying Any Options Strategy 107</p>
<p>The Oracle of Omaha Did It, Why Can t I? 111</p>
<p>The Basics 114</p>
<p>Trading Options Order Types 122</p>
<p>Options Expiration in Detail 126</p>
<p>Exercise and Assignment 128</p>
<p>When Should You Exercise an Option Early? 132</p>
<p>What Is Triple Witching? (Or Quadruple Witching) 134</p>
<p>Final Thoughts 137</p>
<p>CHAPTER 5 The Greeks: The Forces That Influence Options Prices 139</p>
<p>Delta 139</p>
<p>Final Thoughts 156</p>
<p>CHAPTER 6 Strategy: The Basic Options Trades 159</p>
<p>Basic Single Options Strategies 160</p>
<p>The Long Call 160</p>
<p>Covered Call (Buy–Write) 171</p>
<p>Buy–Write versus Covered Call 175</p>
<p>Long Put 181</p>
<p>Basic Stock and Options Spread 195</p>
<p>Final Thoughts 208</p>
<p>CHAPTER 7 Strategy: The Basic Spread Trades 209</p>
<p>Vertical Spreads in Depth 209</p>
<p>The Four Basic Vertical Spreads Basic Characteristics and Behavior 214</p>
<p>Credit Spreads versus Debit Spreads 216</p>
<p>Credit Vertical Spreads 219</p>
<p>Debit Vertical Spreads 236</p>
<p>Buying a Put Spread (Bear Put Spread) 237</p>
<p>Buying a Call Spread (Bull Call Spread) 242</p>
<p>Market Direction Neutral Spread Strategies 257</p>
<p>Final Thoughts 271</p>
<p>CHAPTER 8 Strategy: The Advanced Option Spreads 273</p>
<p>Market Neutral, Volatility, and Earnings Spread Strategies 273</p>
<p>Butterflies versus Condors 281</p>
<p>Iron Spreads 285</p>
<p>Iron Butterfly versus Iron Condor 286</p>
<p>Final Thoughts 309</p>
<p>CHAPTER 9 Advanced Concepts 311</p>
<p>Put–Call Parity, Interest Rates, Dividends, and Forwards 312</p>
<p>Synthetics and More on Put–Call Parity 316</p>
<p>Final Thoughts 336</p>
<p>CHAPTER 10 A Revolutionary Approach to the Mind Games of the Markets: Understand Why You Need Emotions to Trade Well 337</p>
<p>Trading Is Like Weather Forecasting 338</p>
<p>What Is Psych Cap? 345</p>
<p>Strategies and Tactics for Large Psych Cap Balances 352</p>
<p>About the Contributor 359</p>
<p>CHAPTER 11 Turning Your Trading into a Business 361</p>
<p>Learning the Dollar 362</p>
<p>Education 362</p>
<p>The Formative Process 363</p>
<p>Tips and Formulas for Budgetary Success 364</p>
<p>Setting Up a Legal Entity 366</p>
<p>Guidelines, Indicators, and Birds of Prey 371</p>
<p>Final Thoughts 381</p>
<p>About the Contributor 381</p>
<p>Notes 383</p>
<p>About the Author 389</p>
<p>Index 391</p>