Study Guide for Options as a Strategic Investment 5th Edition

by Lawrence G. McMillan

Overview

This Study Guide for the Fifth Edition of Options as a Strategic Investment will help you maximize your understanding of options, thereby increasing your profits.

Product Details

ISBN-13:	9780735204645
Publisher:	Penguin Publishing Group
Publication date:	08/07/2012
Pages:	176
Product dimensions:	7.30(w) x 9.00(h) x 0.50(d)
Age Range:	18 Years

About the Author

Lawrence G. McMillan is a professional trader and the author of the bestselling Options as a Strategic Investment. He appears regularly on CNBC and Bloomberg TV, and is the recipient of the prestigious Sullivan Award due to his contribution to the growth and integrity of the US options markets. He is founder and president of McMillan Analysis Corporation.

Table of Contents

How to use this study Guide vii

Lesson 1 Definitions 1

Lesson 2 Covered Call Writing 9

Lesson 3 Call Buying 16

Lesson 4 Other Call Buying Strategies 23

Lesson 5 Naked Call Writing 30

Lesson 6 Ratio Call Writing 37

Lesson 7 Bull Spreads Using Call Options 44

Lesson 8 Bear Spreads Using Call Options 50

Lesson 9 Calendar Spreads 54

Lesson 10 The Butterfly Spread 58

Lesson 11 Ratio Call Spreads 62

Lesson 12 Combining Calendar and Ratio Spreads 66

Lesson 13 Reverse Spreads 70

Lesson 14 Diagonalizing a Spread 74

Lesson 15 Put Option Basics 78

Lesson 16 Put Option Buying 84

Lesson 17 Put Buying in Conjunction with Common Stock Ownership 89

Lesson 18 Buying Puts in Conjunction with Call Purchases 93

Lesson 19 The Sale of a Put 98

Lesson 20 The Sale of a Straddle 102

Lesson 21 Synthetic Stock Positions Created by Puts and Calls 106

Lesson 22 Basic Put Spreads 111

Lesson 23 Spreads Combining Calls and Puts 116

Lesson 24 Ratio Spreads Using Puts 121

Lesson 25 Long-Term Option Strategies 126

Final Examination 133

Final Examination Answers 163

Editorial Reviews

The new edition is revised to represent the latest trading vehicles and applications, including coverage of long-term equity anticipation securities LEAPs, preferred equity redemption cumulative stocks PERCs, neutral trading, futures options, warrants, and standard portfolio analysis of risk SPAN. The idea, of course, is to maximize earnings and reduce risk—no matter how the market is performing. Strategy techniques and examples show how to do it.

booknews.com

The new edition is revised to represent the latest trading vehicles and applications, including coverage of long-term equity anticipation securities LEAPs, preferred equity redemption cumulative stocks PERCs, neutral trading, futures options, warrants, and standard portfolio analysis of risk SPAN. The idea, of course, is to maximize earnings and reduce risk—no matter how the market is performing. Strategy techniques and examples show how to do it.

Reference & Research Book News

The new edition is revised to represent the latest trading vehicles and applications, including coverage of long-term equity anticipation securities (LEAPs), preferred equity redemption cumulative stocks (PERCs), neutral trading, futures options, warrants, and standard portfolio analysis of risk (SPAN). The idea, of course, is to maximize earnings and reduce risk--no matter how the market is performing. Strategy techniques and examples show how to do it. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Booknews