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

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

2.8 6
by W. Edward Olmstead
 

Brief, carefully paced lessons on options and trading strategies using verbal definitions and many trading examples for clarification. Each lesson builds on the one preceding it and explains options in plain English, from start to finish. Step-by-step coverage of controlling risk, protecting your investments -- even advanced strategies other introductory books

Overview

Brief, carefully paced lessons on options and trading strategies using verbal definitions and many trading examples for clarification. Each lesson builds on the one preceding it and explains options in plain English, from start to finish. Step-by-step coverage of controlling risk, protecting your investments -- even advanced strategies other introductory books ignore! Authored by Dr. W. Edward Olmstead, contributing editor to The Spear Report and editor of The Options Professor newsletter.

Editorial Reviews

From the Publisher

Trader, professor and editor of a successful options newsletter Olmstead consolidates his vast knowledge and experience into this accessible guide to options.

Appropriate for both beginners and more seasoned investors, this book covers everything from the basics of call and put options to advanced topics like delta-neutral trading and the Black-Scholes formula. Because buying options is cheaper and less risky than buying stocks, these time-limited investments are a great way to increase profits. Olmstead is a natural teacher, employing a concise, no-nonsense and easy-to-understand style. Readers will learn why “time is money,” how to use vertical spreads, how options can cut your tax bill and how to make profits even when you can't predict the market direction. Most importantly, Olmstead teaches how to “think like an option trader,” providing the market acumen necessary to maximize profit.

Sure to be appreciated by options traders of all levels.

--Kirkus Reviews, Vol. 3, Issue 3 (March 31, 2006)

Product Details

ISBN-13:
9780131721289
Publisher:
FT Press
Publication date:
03/24/2006
Series:
Financial Times (Prentice Hall) Ser.
Edition description:
1ST
Pages:
256
Product dimensions:
6.32(w) x 9.24(h) x 0.92(d)

Read an Excerpt

PREFACE

This book is intended for people who are just starting to learn about options as well as for those who want to advance their basic knowledge to a higher level. Much of the material in this book has previously appeared in a series of articles written for The Options Professor, a monthly online newsletter about options trading, published by Independent Investor, Inc., Bloomfield, Connecticut. Some of the material was originally developed by the author for a course on options pricing theory taught at Northwestern University, Evanston, Illinois.

Section I includes Chapters 1 through 9. These chapters contain fundamental information about options, mainly intended for the beginner. Those who have some experience with options may still find it worthwhile to skim through Section I to fill some gaps in their knowledge.

Section II includes Chapters 10 through 25. Each chapter in this section is devoted to a strategy that goes beyond the basic trade of owning a call or a put option. Some chapters are an advanced continuation of the strategy introduced in the preceding chapter. The advanced chapters are marked with an asterisk and can be passed over by beginners during their first reading of this book.

Section III includes Chapters 26 through 30. Each chapter in this section covers a topic that is intended for people with options experience who want to develop a broader background. All of these chapters are marked with an asterisk, so this whole section can be passed over by beginners during their first reading of this book.

The method of exposition in this book is primarily through example. The options concepts in each chapter are introduced and discussed in the form of example trades. Many of the examples are illustrated with risk graphs, which serve to reinforce the concepts of each strategy.

All of the trades presented in the book are taken from real situations, although the prices may have been altered slightly to simplify the presentation. In most of the examples, the real stock symbol has been replaced by the mythical XYZ or ZYX, so that the reader can focus on the discussion without any distraction related to an experience with the actual stock. In some examples, the real stock symbols have been used because it seemed particularly important to the discussion.

© Copyright Pearson Education. All rights reserved.

Meet the Author

Dr. W. Edward Olmstead is the editor of The Options Professor, one of the world’s leading newsletters on options trading. He is also an options analyst for Spear Capital Management. He has consulted on short-term trading strategies with a member company of the Chicago Mercantile Exchange.

Dr. Olmstead is Professor of Applied Mathematics in the McCormick School of Engineering and Applied Sciences at Northwestern University. He has taught courses that cover both the theory for options pricing and practical strategies for trading options. Dr. Olmstead has received several awards including an endowed chair for teaching excellence and has been praised by his colleagues as “the quintessential teacher in our midst.”

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Options for the Beginner and Beyond 2.8 out of 5 based on 0 ratings. 6 reviews.
Anonymous More than 1 year ago
I would recommend it to anybody who is interested in options.
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