This book, geared specifically toward women, describes how to be a successful option trader, even if you hold down a full-time job or are a full-time stay-at-home mom.
While option trading is definitely not a risk-free method of investment, for women who have a few hundred extra dollars that they want to use to break into investing, option trading can be a lucrative way to make money.
This book explains what everything means and how to be an option trader in easy-to-understand, step-by-step ways that makes it great for the beginner or the more advanced investor. It is primarily focused on trading online and tells you what you need to know to better your chances of being successful.
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About the Author
Wendy Kirkland (Asheville, North Carolina) is a successful option trader when she's not running her gift shop in Asheville, North Carolina. She has hosted a number of investing groups for women to help them learn the ropes of option trading and share their stories.
Virginia McCullough (Green Bay) is a full-time writer with over 25 years of experience. She currently lives in Green Bay, Wisconsin.
Table of Contents
Chapter 1 The Basics 1
Starting the Journey
These Things Called Stocks
Shopping with the Bulls and Bears
Adding Options to the Mix
The Trend Is Your Friend
What Can You Expect from Trading Options?
We Have Choices
More Terms to Remember
Chapter 2 The Stock Market and Risk-Looking at Trading Personalities 16
What We Watch For
Reason and Emotion
Let's Talk about Greed
Chapter 3 We Begin-Creating Your Plan 24
Exchange Traded Funds (ETFs)
Why Purchase Options on Indexes of ETFs?
Why Purchase Stock Options?
A Critical Tool for a Successful Trading Plan
What Do You See?
What Made the First Cut?
Chapter 4 Chart Reading 101 34
Back to Your List and IBD
Checking for Ripeness with Technical Screens
Trend Trading-Examining Trends
Simple Moving Averages (SMAs)
Understanding Option Chains
Long and Short Moving Average Crossovers
Chapter 5 Indicators and Oscillators 56
Relative Strength Index (RSI)
Moving Average Convergence and Divergence (MACD)
Percentage Price Oscillator (PPO)
Average Directional Index (ADX)
Chapter 6 The Matter of Puts 83
Applying the Principle behind Puts
The Big and Small Pictures Count
Chapter 7 Putting It All Together-Identifying Buy Signals 88
What to Keep Your Eye On
A Strategy in Action
Keep Your Eye on the Charts
Another Chart to Analyze
Let's Look for More Opportunities
Looking at a Well-KnownCompany
A NASDAQ Stock
Looking at Another Sector
Looking at ETFs and the Option Index
Chapter 8 Recognizing Sell Signals 125
The 30-Day Rule
The 7-Day Rule
The 7% Rule
The Technical Analysis
Clear versus Cloudy Thinking
Chapter 9 Setting Up a Trading Account 133
Following the Steps
Using Other Tools
Other Features at OptionsXpress
Chapter 10 Volatility 143
Overall Market Volatility Chart
Introducing the Greeks
What to Take Away for Now
Chapter 11 Strategies 151
Examining the Trading Strategies
What to Watch for Once You Are in a Trade
Other Useful Information
When to Start, When to Wait
Chapter 12 Working the Plan 167
Option Chain Chart
The Cost of Trading
Chapter 13 The Pattern Funnel Narrows 179
The Patterns-Triangles, Wedges, Flags, and Pennants
Continuation or Neutral Patterns
Candlestick Patterns-Bullish, Bearish, Reversal, and Neutral
Chapter 14 Q&A with Wendy 193
Is there a daily or weekly routine or schedule that you follow?
Have your goals changed since you started option trading?
What is your frame of mind-your mental approach-when you make an investment?
How are taxes on profits and losses handled?
Can you form a business around option trading?
Is option trading completely an isolated, individual endeavor?
What qualities do you think good traders share?
Are you involved in the market all the time?
Do some women trade only ETFs?
Do you have a favorite stock or a list of stocks you particularly like?
How do you handle losses on an emotional level?
How much of your investment fund do you have invested at any one time? And how much on any one stock?
Do you watch the stock channels on TV? And if so, how do you filter the information?
If an option contract drops to the point that it has no value at its expiration date, do you have to close it, so that you don't have to exercise the option to buy the stock?
Are there option traders who day trade?
When you sell an option contract, are those funds available immediately to reinvest?
What would you say is the most valuable lesson you have learned?
What would you say has been your biggest mistake?
Can a person make a living trading options?
Appendix: Useful Websites 213
About the Authors 221
Most Helpful Customer Reviews
As a student of the markets, when I choose an educational book to read, I want it to be well-organized, compelling and timely. In "Option Trading in Your Spare Time," Wendy Kirkland and Virginia McCullough have accomplished those objectives with excellence. The authors show readers how the financial markets work and explain technical analysis in a reader-friendly style. Throughout the pages, they weave the fundamentals of stock, ETF and index options trading in an easy-to-understand format. At the book's conclusion, there's an insightful Q & A section that covers questions readers may have about options trading, as well as a comprehensive glossary. If you are embarking on the road to trading options, "Option Trading in Your Spare Time," definitely belongs on your bookshelf! Toni Turner, Author "A Beginner's Guide to Day Trading Online" 2nd Ed. "A beginner's Guide to Short-Term Trading" 2nd Ed. "Short-Term Trading in the New Stock Market"
In Option Trading in Your Spare Time, Wendy Kirkland and Virginia McCullough present a clear and comprehensive guide not only for the beginner, but for those like myself who had previously ventured into trading only to discover they lacked certain essential keys to success. In this book, I have found the missing keys to developing both confidence and a sound knowledge base from which to make wise trading choices. Many thanks to the authors for this wonderful offering.
This book goes into the interworkings of Wall Street and option trading(heavy subjects)yet it is written like you are talking to a friend across the kitchen table. It cuts through the legaleeze leaving what's important. Easy to read, understandable, authoritative and comprehensive. Explains and gives you all the tools to successfully trade online, learning from another's experiences. I highly recommend it.
I knew about the book's expected publication and waited anxiously to receive my copy. The wait was worth every second. I haven't yet finished the entire book, but the easy way things are layed out and explained, I was hooked from page 25. I see the potential and know that this is a good match for me. I'm anxious to start trading virtually. I just wanted to share my enthusiam. This is going to help fulfill my financial goals and dreams. See you within the community at womenoptiontraders.com. The easy to read and procise way the concepts are explained makes this an easy read for someone like me with no stock market or trading experience.
The only bright pink book I am not ashamed to read in public. Options are the way to go.
I purchased this for my wife. I read it cover to cover. She exlpains the process step by step in a way that anyone can understand. Excellent book!!