101 Option Trading Secrets

by Trester, Kenneth R.

• ISBN13: 9780960491445
• ISBN10: 0960491449
• Format: Paperback
• Copyright: 2003-11-01
• Publisher: Inst for Options Research Inc

Summary

Introducing Ken Trester's book-101 Option Trading Secrets Author of the best-selling Complete Option Player, now in its 4th edition, Ken Trester is acclaimed for rendering complex subjects into easy-to-understand concepts and ideas. Through his books, seminars, and as a college professor, Ken Trester has educated tens of thousands of investors about the power and benefits of options. His award-winning programs give ordinary investors an edge in the professional arena. In this 336 page book, Ken condenses his options expertise and 30 years of extensive trading experience into 101 concise secrets that can help any investor to maximize their gains. its fourth edition, is among the best selling options books ever. A former computer science professor Ken has taught many popular course on options trading. In addition, he teaches a limited number of individuals through intensive options seminars. Many former students have been very successful using the strategies he espouses. Ken has an MBA and has worked as an investment manager. He developed an economical software program for personal computers, OPTION MASTER, that allows small investors to easily determine an option's true theoretical value.

Author Biography

Ken Trester is the editor of 5 different option investment weekly publications published by investorplace.com , ultimateoptionstrategies.com and the Institute for Options Research Inc.(optionpal.com) Ken Trester has been trading options since the first exchanges opened in 1973. He's probably one of the nation's best -known options advisor, and he also actively trades his own account. He has written three books on options. The Complete Option Player, now in its fourth edition, is among the best selling options books ever. A former computer science professor Ken has taught many popular course on options trading. In addition, he teaches a limited number of individuals through intensive options seminars. Many former students have been very successful using the strategies he espouses. Ken has an MBA and has worked as an investment manager. He developed an economical software program for personal computers, OPTION MASTER, that allows small investors to easily determine an option's true theoretical value.

Table of Contents

Section 1: Preparing to Play
1 The Secret Advantages of Option Trading	3	(4)
2 Education, Education, Education	7	(2)
3 Play It on Paper	9	(4)
4 Stick a Toe in the Water	13	(2)
5 Do Your Homework	15	(4)
Section 2: The Prediction Game
6 Those Who Use Crystal Balls Eat Chipped Glass	19	(4)
7 Beware of Lady Luck	23	(4)
8 Regression Back to the Mean	27	(4)
9 Beware of Gurus	31	(2)
10 Secret Prediction Methods	33	(2)
11 Maverick Investing	35	(4)
12 Tracks in the Charts	39	(4)
13 Use the Laws of Supply and Demand	43	(4)
14 Sell in May and Go Away	47	(4)
15 The 60% Rule	51	(2)
16 Predicting Stock Tops and Market Bottoms	53	(4)
Section 3: Option Buying
17 Get the Biggest Bang for Your Buck	57	(2)
18 Beware of Inertia	59	(2)
19 Cheap Is Not Always Cheap!	61	(4)
20 Swing for the Fences	65	(2)
21 Let It Ride!	67	(2)
22 Don't Let Profits Slip Away	69	(2)
23 Beat the Clock	71	(2)
24 Avoid an Option's Last Month	73	(2)
25 The Secret of Scaling	75	(2)
26 Beware of Delusions of Grandeur	77	(2)
27 Don't Plunge!	79	(4)
28 Analyze Your Option Position	83	(2)
29 The Secret of Profit Boxes	85	(2)
30 The Straddle Secret	87	(4)
31 Be Patient	91	(2)
32 The Option Buyer's Secret Weapon-Shock and Awe	93	(4)
33 The Stock Advantage	97	(2)
34 The Put Advantage	99	(2)
35 Diversify	101	(4)
36 The Quick and the Dead	105	(2)
37 The Secret of Portfolio Insurance	107	(4)
38 The Second Secret to Portfolio Insurance	111	(4)
39 A Long Shot Secret	115	(4)
Section 4: Option Writing
40 Take the Bet Instead of Making the Bet	119	(2)
41 The Secret Advantage of Option Writing	121	(2)
42 The Secret of Quick Profits	123	(2)
43 Play It Naked	125	(2)
44 Probability-the First Secret for Option Writers	127	(4)
45 Time-the Second Secret for Option Writers	131	(2)
46 Get Out of the Hot Seat!	133	(2)
47 Expiration Writing	135	(2)
48 Defense, Defense, Defense	137	(2)
49 When to Use Covered Call Writing	139	(4)
50 The Hidden Risk of Covered Call Writing	143	(2)
51 Covered Call Writing Strategies	145	(2)
52 Use Naked Put Writing to Buy Stock	147	(2)
53 Naked Put Writing Can Create a Win-Win Strategy	149	(6)
Section 5: Option Analysis
54 Know the True Value Advantage	155	(4)
55 Option Analysis Can Be Easy	159	(4)
56 The Key to Options Analysis	163	(2)
57 Implied Volatility-An Option Analysis Shortcut	165	(4)
58 Keep Your Eyes on the Delta	169	(2)
59 Use Probability Analysis	171	(2)
60 The Secret Weapon of Option Analysis	173	(2)
61 A Tool for Your Arsenal	175	(2)
62 Searching for the Best Plays	177	(2)
63 Situational Analysis	179	(2)
64 Unraveling the Mysteries of Baysian Analysis	181	(6)
65 Gone in 60 Minutes	187	(2)
66 Your Crystal Ball to the Future or Risk-Reward Analysis Using AI	189	(6)
Section 6: Spreading
67 The Spread Advantage	195	(2)
68 The Secret Costs of Option Spreads Beware of Slippage	197	(4)
69 Beware of Alligator Spreads	201	(2)
70 Avoid Delta Neutral Strategies	203	(2)
71 Avoid Repair Strategies	205	(2)
72 How to Reduce the Cost of Option Buying	207	(2)
73 Rules of the Road	209	(4)
Section 7: Trading Tactics
74 Go Online!	213	(4)
75 The Hidden Cost of Trading	217	(4)
76 Act Like a Market-Maker	221	(2)
77 Test the Waters-How to Get the Best Price	223	(2)
78 You Can Buy the World for 1/8	225	(2)
79 How to Enter Spread Positions	227	(2)
80 Secret Spreading Tactics	229	(2)
81 Don't Tip Your Hand-Beware of Size	231	(4)
Section 8: Trading Tips
82 The Top Secret War Room	235	(4)
83 Don't Try to Catch a Falling Knife!	239	(2)
84 Only Play with Fun Money	241	(2)
85 Know When to Fold Them	243	(2)
86 The Secret of Sunk Cost	245	(2)
87 Always Use Stop-Losses, and Don't Look Back	247	(4)
88 Check Your Track Record	251	(2)
89 The Dragon That You See Is Not the Dragon That Will Burn You	253	(4)
Section 9: Trading Resources
90 Treasures on the Information Highway	257	(2)
91 Avoid Analysis Paralysis	259	(2)
92 How to Use Option Advisory Services	261	(2)
93 The 5 P's	263	(4)
94 The Magic Pyramid	267	(4)
Section 10: Power Plays
95 "Thar Is Gold in Them Thar Hills"	271	(2)
96 Rules of the Road for Option Buying	273	(2)
97 Aggressive Writing with Limited Risk	275	(4)
98 Rules of the Road for Index Credit Spreads	279	(2)
99 The Ratio Hedge	281	(2)
100 The Diagonal Spread	283	(4)
101 The Ultimate Power Play: The Secret Surrogate	287	(4)
Conclusion	291	(4)
Section 11: Tutorial
The Listed Option	295	(1)
The Listed Call and Put	296	(1)
Parts of the Whole, the Listed Option	296	(2)
The Option Exchange	298	(1)
The Price of an Option	299	(4)
Intrinsic Value	299	(1)
Time Value	300	(1)
Volatility	301	(1)
Liquidity	302	(1)
Option Writers	303	(4)
Two Types of Option Writers	304	(2)
The How-to to Option Writing	306	(1)
Exercise Defined	307	(1)
Spread Designer	307	(4)
The Debit Spread	307	(1)
The Credit Spread	308	(3)
Index	311