Intro; Contents; List of Figures; List of Tables; Introduction; Market Overview; The History ofOptions Trading; Basics ofOptions-Standardized Terms; Types: Calls andPuts; The Underlying Security; Strike Price; Expiration; The Option Premium andIts Components; Time Value; Volatility; Intrinsic Value; Strategy Ranges; Single-Option Speculative Strategies; Covered Calls; Spreads; Straddles; Synthetic Positions; Market Risks; Market andVolatility Risk; Market Risk ofOption Trading; Variation ofOption Strategy Risk Levels; Covered Call Risks; Lost Opportunity Risk
Moderate andNeutral StrategiesInflation andTax Risk; Inflation Risk; Tax Risk; The Double Hit-Inflation and Taxes; Portfolio Risks; Collateral andMargin Risk; Liquidity Risk; Knowledge andExperience Risk; Diversification andAsset Allocation Risk; Other Forms ofRisk; Leverage Risk; Alpha andBeta Risk; Fundamental Risk; Acquisition andMerger Risk; Reputation or Bankruptcy Risk; Earnings Surprises; Confirmation Bias Risk; Option Strategies; Option Glossary; Elements ofValue; Proximity andPrice; Expiration andOption Valuation; Interest andDividends
Stock Selection asPart oftheOption Value EquationBasic Investment Value ofStock; Selection ofAppropriate Option Positions; Return Calculations; Expected Return andPricing Models; Annualized Return; Strike Selection forCovered Calls; Return If Exercised or Unchanged; Return If Closed; Options andStock Selection; Diversification by Risk Profile; Fundamental Selection Indicators; Technical Selection Indicators; Option Taxation; Capital Gains andLosses; Qualified andUnqualified Covered Calls; Rules forOffsetting Positions; Strategic Considerations; Index
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Options traders rely on a vast array of information concerning probability, risk, strategy components, calculations, and trading rules. Traders at all levels, as well as portfolio managers, must refer to numerous print and online sources, each source only providing part of the information they need. This is less than ideal, as online sources tend to be basic, simplified, and in some cases incorrect. Print sources, on the other hand, are mostly focused on a very narrow range of strategies or trading systems. Up until now, there has been no single source to provide a comprehensive reference for the serious trader. The Complete Options Trader is that much-need comprehensive reference, a compilation of the many attributes options traders need. Thomsett lays out a rich and complete guide to 100 strategies, including profit and loss calculations, illustrations, examples, and much more. A thorough evaluation of these strategies (and the rewards and risk involved) demonstrates how a broad approach to analytically using options can and does enhance portfolio profits with lower levels of risk. The book also features a complete glossary of terms used in the options industry, the most comprehensive glossary of this nature currently available. All too often, the attributes of options trading are poorly understood; risk is ignored or over-simplified; hedging is not folded into a strategic evaluation; and options traders shun the value of holding equity positions. No longer--if options traders rely on this comprehensive guide as the reference for the industry.--