Study Guide for Options as a Strategic Investment 5th Edition

by McMillan, Lawrence G.

• ISBN13: 9780735204645
• ISBN10: 0735204640
• Edition: 5th
• Format: Paperback
• Copyright: 2012-08-07
• Publisher: Prentice Hall Press

Author Biography

Lawrence G. McMillan is the president of McMillan Analysis Corporation, and investment advisory firm that he founded in 1991. He currently authors a unique daily advisory service-Daily Volume Alerts-and also edits and publishes The Option Strategist and The Daily Strategist, derivative products newsletters covering equity, index, and futures options. McMillan is the recipient of the Sullivan Award for 2011, awarded by the Options Industry Council in recognition of his contributions to the options industry.

Table of Contents

How to use this study Guide	p. vii
Definitions	p. 1
Covered Call Writing	p. 9
Call Buying	p. 16
Other Call Buying Strategies	p. 23
Naked Call Writing	p. 30
Ratio Call Writing	p. 37
Bull Spreads Using Call Options	p. 44
Bear Spreads Using Call Options	p. 50
Calendar Spreads	p. 54
The Butterfly Spread	p. 58
Ratio Call Spreads	p. 62
Combining Calendar and Ratio Spreads	p. 66
Reverse Spreads	p. 70
Diagonalizing a Spread	p. 74
Put Option Basics	p. 78
Put Option Buying	p. 84
Put Buying in Conjunction with Common Stock Ownership	p. 89
Buying Puts in Conjunction with Call Purchases	p. 93
The Sale of a Put	p. 98
The Sale of a Straddle	p. 102
Synthetic Stock Positions Created by Puts and Calls	p. 106
Basic Put Spreads	p. 111
Spreads Combining Calls and Puts	p. 116
Ratio Spreads Using Puts	p. 121
Long-Term Option Strategies	p. 126
Final Examination	p. 133
Final Examination Answers	p. 163
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