Description
Book SynopsisThe Go-To Option-Selling Guide--Updated for Today's Manic Markets
Investing today is more complicated and unpredictablethan ever before. The strategy of buy-and-hold has been replaced by buy-and-hope. Trying to grow your assets means worrying about how the next geopolitical crisis or government announcement will affect your portfolio. In an age of stunted economics and uncertain interest rates, attempting to guess market direction can seem futile.
The good news is, you don't have to anymore. There isa better way to invest. It's time to borrow a page fromthe pros and radically change your entire philosophy to building a solid, high-yielding portfolio.
The Complete Guide to Option Selling takes you through the process step by step. Updated to help you drawsteady, high profits in an age of skittish markets, thisclassic text covers the ins and outs of:
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The Fundamentals of Option Selling
Why writing options works so well, what kind of investor
Table of Contents
Acknowledgements v
Introduction 1
Part I: Selling Options: Why and How it Works 7
1. The Option Seller’s Secret: Excelling in the World’s Most Underrated (and Undiscovered) Investment Strategy 9
2. The “Who” of Selling Options: Insights From 30 Yearsin the Options Market 19
3. Why Aren’t You Selling Options? The Key Advantagesof Option Selling 25
4. Buying Options Versus Selling Options: Who Wins? 43
5. O ption Selling on Steroids: An Introductionto Futures Options 61
6. SPAN Margin: Your Key to High Returns 79
Part II: Option Selling Strategy and Risk Control 897. How to Pick the Right Option to Sell: Lessons Learnedfrom Three Decades in the Field 91
8. The Use and Abuse of Spreads: How to Keep Themfrom Taking Your Money 119
9. Recommended Spreads: The Few and the Proud:Spread Strategies That Really Work for the Individual Investor 141
10. The Best Option-Selling Strategy Ever:The Ratio Credit Spread 159
11. Option-Selling Mechanics: Quick Tips on Liquidity, Timing,Order Placement, Assignment, Limit Moves, and More 169
12. Managing Your Option-Selling Risk: Defense WinsChampionships 181
Part III: Market Analysis and Option Selling 203
13. Fundamentals: The Dirty Little Secret About how MoneyReally Gets Made in Commodities 205
14. Key Fundamentals of Select Markets:What to Watch, Where to Find Them 223
15. Seasonal Tendencies in Option Selling:A Most Potent Profit Formula 243
16. The Best Markets for Seasonal Option Sales: A Primerfor Seasonal Neophytes 261
17. Volatility Simplified: All You Need to Know About the Most isunderstood Option Component 287
18. How to Structure Your Option-Selling Portfolio: Tipson Building Your Premium Ladder 297
Part IV: Getting Started 307
19. How to Avoid the Mistakes New Option Sellers Make: Learn Them Here and Save Yourself Time, Money, and Headaches 309
20. Finding a Good Broker or Money Manager: The Best Trading Decision You’ll Ever Make is Choosing the Right Professional 319
21. Option Selling as an Investment: Frequently Asked Questions 331
22. Pulling It All Together: A Quick Review of What YouHave Learned 343
References and Resources 351
Index 355
About the Authors 362
