Options for the Beginner and Beyond Unlock the Opportunities and Minimize the Risks

by Olmstead, W. Edward

• ISBN13: 9780132655682
• ISBN10: 0132655683
• Edition: 2nd
• Format: Hardcover
• Copyright: 2012-12-19
• Publisher: Ft Pr

Summary

Master option trading strategies hands-on, one step at a time! Options for the Beginner and Beyond, Second Editionteaches options through brief, carefully-paced lessons on option concepts and trading strategies, crystal-clear definitions, and plenty of real trading examples. Every lesson builds on the one preceding it, explaining options in plain English, and guiding you all the way to advanced strategies covered in no other introductory tutorial. Drawing on his extensive experience teaching options trading to beginners -- and five years editing a leading options newsletter -- W. Edward Olmstead shows how to systematically control your risk, protect your investments, and maximize your profits. This new Second Edition integrates new coverage of weekly options throughout, and presents updated tax strategies every options trader needs to know. Olmstead shows you how to do all this, and much more: Select options with high profit potential Enter and exit trades Choose brokers Work with the Greeks, risk graphs, and LEAPs Use vertical, event producing, and calendar spreads Trade covered calls, straddles, strangles, married puts, and collars Master these and other sophisticated strategies: naked options, stock substitutes, backspreads, butteryfly spreads, iron condors, and double diagonals Implement effective end-of-year tax strategies Day trade indexes with options Use delta-neutral trading Leverage the theory of maximum pain; implied volatility, and Black-Scholes

Author Biography

W. Edward Olmstead has a B.S. from Rice University and a Ph.D from Northwestern University, where he is currently Professor of Applied Mathematics in the McCormick School of Engineering and Applied Sciences. He has received several prestigious awards for teaching excellence including an endowed chair. His teaching activities include courses that cover both the theory of options pricing and practical strategies for trading options.
In the world of finance, Dr. Olmstead has more than fifteen years of experience in the trading of options. He holds a FINRA Series 65 license along with considerable experience as an options consultant. He has written various articles on options for the online media.
Dr. Olmstead was Editor of The Options Professor newsletter published by Independent Investor, Inc. during 2003-07. His consulting activities included service as an options analyst for Spear Capital Management. He also worked on an ultra short-term trading concept for a member firm of the Chicago Mercantile Exchange. Since 2010, he has utilized a propriatary options strategy in the management of funds for a group of private clients.
For more information about Dr. Olmstead’s current options interests, go to www.olmsteadoptions.com. 

Table of Contents

Section I          Basic Concepts

Chapter 1        Introduction

Chapter 2        Option Selection

Chapter 3        Entering and Exiting Option Trades

Chapter 4        The Greeks

Chapter 5        Risk Graphs

Chapter 6        Leaps and Weekly Options

Chapter 7        Assignment Anxiety

Chapter 8        Broker Selection

Chapter 9        Miscellaneous Tips

Section II        Trading Strategies      

Chapter 10      Vertical Spreads

Chapter 11      Event Producing Credit Spreads

Chapter 12      Calendar Spreads

Chapter 13      Advanced Calendar Spreads

Chapter 14      Covered Calls

Chapter 15      Straddles and Strangles

Chapter 16      Stock Repair and Stock Enhancement

Chapter 17      Married Puts

Chapter 18      Collars

Chapter 19      Advanced Collars

Chapter 20      Naked Option Writing

Chapter 21      Stock Substitutes

Chapter 22      Backspreads

Chapter 23      Butterfly Spreads

Chapter 24      Iron Condors and Double Diagonals

Chapter 25      An End-of-Year Tax Strategy

Section III       Special Topics

Chapter 26      Day Trading an Index With Options

Chapter 27      Delta-Neutral Trading

Chapter 28      Theory of Maximum Pain

Chapter 29      Implied Volatility and the Black-Scholes Formula

Chapter 30      The Put-Call Parity Relationship