Complete Guide to Option Selling : How Selling Options Can Lead to Stellar Returns in Bull and Bear Markets

by Cordier, James

• ISBN13: 9780071442084
• ISBN10: 0071442081
• Format: Hardcover
• Copyright: 2004-12-10
• Publisher: McGraw-Hill

Summary

Increasing numbers of investors are looking beyond unwarranted fears of "unlimited risk" to see option selling for what it really is-a commonsense, risk-controlled approach that dramatically improves an investor's chances of profiting while providing better-than-average returns in every type of market.

Author Biography

James Cordier is president and head trader of Liberty Trading Group, managing assets for a worldwide client base. Cordier is regularly quoted in financial media including the Wall Street Journal, Bloomberg News, and Barron's. His weekly market commentary is published on several major investment websites.

Michael Gross is director of research at Liberty Trading Group. An active broker, he is involved in writing the firm's research reports and has been quoted in Bloomberg News. Along with Cordier, his articles have appeared in Futures and Yahoo Finance.

Table of Contents

Introduction	v
PART I SELLING OPTIONS---WHY AND HOW IT WORKS
Why Sell Options	3	(14)
A Crash Course on Futures	17	(10)
Buying Options versus Selling Options	27	(14)
Span Margin: The Key to High Returns	41	(12)
PART II OPTION SELLING STRATEGY AND RISK CONTROL
Strike Price and Time Selection	53	(20)
Use and Abuse of Spreads	73	(16)
Recommended Spread Strategies	89	(16)
Liquidity, Order Placement, Assignment, and Limit Moves	105	(10)
Risk Control in Option Selling	115	(18)
PART III MARKET ANALYSIS AND OPTION SELLING
Fundamentals versus Technicals	133	(10)
Key Fundamentals of Select Markets	143	(12)
Seasonal Analysis and Option Selling	155	(16)
The Best Markets for Seasonal Option Sales	171	(26)
PART IV GETTING STARTED
Mistakes New Option Sellers Make	197	(10)
Finding a Good Broker or Money Manager	207	(10)
Option Selling as an Investment	217	(10)
Pulling It All Together	227	(8)
References	235	(4)
Index	239