Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor (Agora Series)

Get Rich with Options Second Edition: Four Winning Strategies Straight from the Exchange Floor......Page 5
CONTENTS......Page 9
PREFACE TO THE SECOND EDITION......Page 11
ACKNOWLEDGMENTS......Page 15
PART ONE: THE OPTION BASICS......Page 17
CHAPTER 1: IT’S ALL ABOUT THE CALLS AND PUTS......Page 19
OPTION BUYERS HAVE RIGHTS; OPTION SELLERS HAVE OBLIGATIONS......Page 20
PROBABILITY IS THE KEY......Page 22
AN OPTION EXAMPLE......Page 23
THE PROFIT/LOSS SCENARIO......Page 25
STOCK PRICE AND STRIKE PRICE RELATIONSHIP......Page 28
SUMMARY......Page 29
CHAPTER 2: HOW OPTIONS ARE PRICED......Page 31
ANATOMY OF A PREMIUM......Page 34
GOT MOVEMENT?......Page 35
SUMMARY......Page 41
WHAT IS VOLATILITY?......Page 43
USING VOLATILITY TO YOUR ADVANTAGE......Page 45
TWO STOCKS, DIFFERENT VOLATILITY......Page 48
THE SKEW FACTOR......Page 52
EARNINGS DUD?......Page 59
SUMMARY......Page 60
CHAPTER 4: STOCKS VERSUS OPTIONS......Page 63
WHAT DO WE DO?......Page 65
THE DELTA FACTOR......Page 66
SUMMARY......Page 72
CHAPTER 5: OPTION SELLING IS YOUR KEY TO SUCCESS......Page 73
HOW TO BATTLE TIME DECAY......Page 77
PROBABILITIES......Page 79
OPTION SELLING PREREQUISITE......Page 82
PART TWO: THE STRATEGIES......Page 85
CHAPTER 6: BUY ALL THE STOCK YOU WANT FOR HALF THE PRICE......Page 87
WHY PAY $2,289 FOR SOMETHING WHEN YOU CAN BUY IT FOR $1,120?......Page 91
MOVEMENT IS THE KEY......Page 92
DELTA IS YOUR WEAPON......Page 93
DELTA IN ACTION......Page 94
CHOOSING THE STRIKE PRICE......Page 99
THE PROBABILITIES......Page 100
BUYING THE WHOLE MARKET......Page 102
AN ADDED BENEFIT......Page 104
EXPIRATION ACTION?......Page 105
DRAWBACKS?......Page 106
SUMMARY......Page 107
CHAPTER 7: GETTING PAID TO BUY YOUR FAVORITE STOCK......Page 109
HOW DOES IT WORK?......Page 110
WHAT HAPPENS WHEN YOU SELL NAKED PUT OPTIONS?......Page 113
HOW DO WE GET OUR SHARES?......Page 114
WHY DON’T WE GET OUR SHARES?......Page 115
PICKING A DIFFERENT STRIKE PRICE......Page 117
A FEW REQUIREMENTS......Page 118
MARGIN REQUIREMENTS......Page 119
PUT SELLING ON THE DOWNDRAFT......Page 120
TOUGH TIMES IN 2008......Page 127
RISK MANAGEMENT......Page 133
WRAPUP......Page 134
CHAPTER 8: OPTION CREDIT SPREADS: THE ALL-STAR STRATEGY......Page 137
THE FIRST STEPS......Page 138
HOW THE OPTION CREDIT SPREAD WORKS......Page 140
REAL-LIFE TRADE EXAMPLES......Page 142
RETURN ON MARGIN......Page 156
RISK MANAGEMENT......Page 175
2007 AND 2008 CREDIT SPREAD UPDATE......Page 178
SUMMARY......Page 179
WHO IS THE MARKET MAKER?......Page 189
MARKET-MAKER SURVIVAL......Page 191
THE TRADER’S MIND-SET......Page 193
PIN RISK AND LOPSIDED POSITIONS......Page 195
THE SLOW DAYS......Page 197
CHAPTER 10: PUT YOUR STOCKS TO WORK—SELL COVERED CALLS......Page 201
WHAT IS IT?......Page 202
HOW DO WE DO IT?......Page 203
ASSIGNMENT?......Page 206
STRIKE PRICE VERSUS COST BASIS......Page 208
I GOT MY FOLKS IN ON THE ACTION!......Page 211
TRADE UPDATE......Page 216
RISK MANAGEMENT......Page 218
SUMMARY......Page 219
CHAPTER 11: A BONUS STRATEGY: RATIO OPTION SPREADS......Page 221
MAKING THE TRADE......Page 225
2009 SOYBEAN UPDATE......Page 229
RISK MANAGEMENT......Page 233
ONE OF MY FAVORITE RATIO MARKETS......Page 234
2009 RATIO OPTION UPDATE......Page 239
SUMMARY......Page 240
PART THREE: GETTING READY TO TRADE......Page 243
CHAPTER 12: TOOLS OF THE TRADE......Page 245
CHAPTER 13: BROKERS AND COMMISSIONS......Page 251
STOCK OPTIONS BROKERS......Page 252
COMMODITIES BROKERS......Page 254
COMMODITY UPDATE 2009......Page 255
OPTION APPROVAL......Page 257
LAST WORDS......Page 258
CONCLUSION......Page 259
BROKERS AND SOFTWARE......Page 260
INDEX......Page 263