Authors Swope and Howell are accomplished market educators and their partners are the leaders in trading and investing, including E*Trade, CBOE, OIC, NYSE, NASDAQ OMX, CME and ISE
Table of Contents
Acknowledgments xi Introduction xiii
CHAPTER 1 Market Scoring 1
Intuition Can Be High Tuition 2
The Role of Technical Analysis 3
CHAPTER 2 Trend Scoring 9
Trend-Scoring System 10
CHAPTER 3 Volatility Scoring 27
Volatility Overview 28
Volatility Scoring System 34
Know That You Don’t Know 42
CHAPTER 4 Protecting Your Position 43
Seven Keys to Risk Management Success 44
Three Legs of Managing Risk 54
Setting Stops 63
Safety in Numbers 66
CHAPTER 5 Covered Calls 67
Getting to Know the Strategy 68
Strategy in Action 70
Strategy Management 71
Strategy Application 76
CHAPTER 6 Long Calls 81
Getting to Know the Strategy 81
Strategy in Action 85
Strategy Management 91
LEAPS 92
Strategy Application 95
CHAPTER 7 Long Puts 101
Getting to Know the Strategy 101
Strategy in Action 102
Strategy Management 104
Speculative Puts 107
Collars 110
Strategy Application 111
CHAPTER 8 Straddles and Strangles 117
Getting to Know the Strategy 118
Strategy in Action—Straddle 119
Strategy Management 122
Strategy in Action—Strangle 124
Strategy Application 125
CHAPTER 9 Debit Spreads 131
Getting to Know the Strategy 132
Strategy in Action 135
Strategy Management 136
Strategy Application 141
CHAPTER 10 Cash-Secured Puts 145
Getting to Know the Strategy 145
Strategy in Action 147
Strategy Management 149
Strategy Application 153
CHAPTER 11 Credit Spreads 159
Getting to Know the Strategy 160
Strategy in Action 160
Strategy Management 162
Strategy Application 168
CHAPTER 12 Horizontal Spreads 171
Getting to Know the Strategy 173
Strategy in Action 175
Strategy Management 176
Strategy Application 179
CHAPTER 13 Diagonal Spreads 183
Getting to Know the Strategy 184
Strategy in Action 190
Strategy Management 191
Strategy Application 193
CHAPTER 14 Index Options 197
Getting to Know the Strategy 198
Strategy in Action 204
Strategy Execution 204
CHAPTER 15 Butterfly Spreads 207
Getting to Know the Strategy 208
Strategy in Action 210
Strategy Management 212
Strategy Application 213
CHAPTER 16 Iron Condors 217
Getting to Know the Strategy 218
Strategy in Action 218
Strategy Management 221
Strategy Application 223
APPENDIX Strategy Profit and Loss Diagrams 227
About the Authors 231
Index 233
