A detailed guide to successfully trading stock and commodityoptions
After numerous years as an options market-maker in the trenchesof the New York Mercantile Exchange, few analysts know how to makemoney trading options like author Lee Lowell. Now, in the SecondEdition of Get Rich with Options, Lowell returns to showyou exactly what works and what doesn't.
Filled with in-depth insight and expert advice, this reliableresource provides you with the knowledge and strategies needed toachieve optimal results within the options market. It quicklycovers the basics before moving on to the four options tradingstrategies that have helped Lowell profit in this arena time andagain: buying deep-in-the-money call options, selling naked putoptions, selling option credit spreads, and selling coveredcalls.
- Breaks down four of the best options trading strategiescurrently available
- Explains how to set up a home-based business with the bestoptions trading software, tools, and Web sites
- Contains detailed discussions of how options can be used as ahedging or speculating instrument
With this book as your guide, you'll quickly see options in awhole new light and learn how to become part of a small group ofinvestors who consistently win.
About the Author
Lee Lowell is one of America's leading options professionals and is the coeditor of Mt. Vernon Research's Xcelerated Profits Report and Editor of Instant Money Trader and Triple-Zone Profit Trader. He has been an options trading professional for seventeen years and spent six years in the options trenches as a market-maker on the floor of the New York Mercantile Exchange (NYMEX). After leaving the floor in 1998, Lowell started, and currently runs, his own home-based trading business—actively trading commodity options and futures, stocks, stock options, ETFs, and e-mini futures. He's had numerous articles published in leading financial magazines, including Futures and Technical Analysis of Stocks and Commodities, as well as articles posted on options-related Web sites such as www.optioninvestor.com and www.esignal.com. Lowell is also the author of the first edition of Get Rich with Options (Wiley).
Table of Contents
Preface to the Second Edition ix
Part One: The option basics 1
CHAPTER 1: It’s All about the Calls and Puts 3
CHAPTER 2: How Options are Priced 15
CHAPTER 3: Option Volatility 27
CHAPTER 4: Stocks versus Options 47
CHAPTER 5: Option Selling Is Your Key to Success 57
Part Two: The strategies 69
CHAPTER 6: Buy All the Stock You Want for Half the Price 71
CHAPTER 7: Getting Paid to Buy Your Favorite Stock 93
CHAPTER 8: Option Credit Spreads: The All-Star Strategy 121
CHAPTER 9: A Day in the Life of the Market Maker 173
CHAPTER 10: Put Your Stocks to Work—Sell Covered Calls 185
CHAPTER 11: A Bonus Strategy: Ratio Option Spreads 205
Part Three: Getting Ready to Trade 227
CHAPTER 12: Tools of the Trade 229
CHAPTER 13: Brokers and Commissions 235
Most Helpful Customer Reviews
Great to have around as a reference book. The fast moving, and fast growing field of options trading has a new spokesman. Lee breaks through the Wall Steet gibberish to explain the intricacies of options trading.
Excellent book, no reservations. I have been trading stock options for several years, and started trying the author's "all-star" strategy which he calls "option credit spreads" immediately. After about 6 months of experimenting followed by serious use it has become my primary strategy and generally nets me several thousand per month. Highly recommended!
Very disappointed in the quality of the sample and won't invest this kind of money for something so poorly written! If its just a problem with the sample, I couldn't tell. Very frustrating reading.