Option Trading in Your Spare Time: A Guide to Financial Independence for Women

Option Trading in Your Spare Time: A Guide to Financial Independence for Women

by Wendy Kirkland


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Product Details

ISBN-13: 9781572487086
Publisher: Sourcebooks
Publication date: 01/01/2009
Pages: 250
Sales rank: 247,012
Product dimensions: 6.00(w) x 8.90(h) x 0.80(d)

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

Acknowledgments ix

Preface xi

Chapter 1 The Basics 1

Your Mindset

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

Know Thyself

Understanding Risk

Gaining Confidence

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)

Understanding Volume

Understanding Gaps

Understanding Oscillators

Williams %R

Moving Average Convergence and Divergence (MACD)

Percentage Price Oscillator (PPO)

Understanding Stochastics

Average Directional Index (ADX)

Accumulation/Distribution Line

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

Buy Signals-Calls

Buy Signals-Puts

Keep Your Eye on the Charts

Another Chart to Analyze

Let's Look for More Opportunities

Looking at a Well-KnownCompany


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

Sell Signals-Calls

Sell Signals-Puts

The Technical Analysis

Clear versus Cloudy Thinking

Chapter 9 Setting Up a Trading Account 133

Following the Steps

Other Issues

Virtual Trading

Using Other Tools

Other Features at OptionsXpress

Chapter 10 Volatility 143

Using Volatility

Overall Market Volatility Chart

Introducing the Greeks

Theoretical Value

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

Other Tools

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?

Glossary 203

Appendix: Useful Websites 213

Index 215

About the Authors 221

Customer Reviews

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Option Trading in Your Spare Time 5 out of 5 based on 0 ratings. 7 reviews.
Anonymous More than 1 year ago
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"
Anonymous More than 1 year ago
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.
SherryG19 More than 1 year ago
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.
new-women-trader More than 1 year ago
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.
Anonymous More than 1 year ago
The only bright pink book I am not ashamed to read in public. Options are the way to go.
Anonymous More than 1 year ago
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!!
Anonymous More than 1 year ago