In Options Made Easy, Second Edition, Guy Cohen clearly explains everything you need to know about options in plain English so that you can start trading fast and make consistent profits in any market, bull or bear!
Simply and clearly, the author reveals secrets of options trading that were formerly limited to elite professionals–and exposes the dangerous myths that keep investors from profiting.
As you set out on your options journey, you'll learn interactively through real-life examples, anecdotes, case studies, and pictures. Guy Cohen is your friendly expert guide, helping you pick the right stocks, learn the right strategies, create the trading plans that work, and master the psychology of the winning trader.
Master all the essentials–and put them to work
Options demystified so that you can get past the fear and start profiting!
Learn the safest ways to trade options
Identify high-probability trades that lead to consistent profits
Design a winning Trading Plan–and stick to it
Understand your risk profile and discover exactly when to enter and exit your trades
Choose the right stocks for maximum profit
Screen for your best opportunities–stocks that are moving–or are about to move
Discover the optimum strategies for you
Match your trading strategies to your personal investment goals
No bull! The realities and myths of the markets
What you must know about fundamental and technical analysis
About the Author.
1. Introduction to Options.
2. Into the Marketplace.
3. The Basics of Fundamental Analysis.
4. The Basics of Technical Analysis.
5. Two Popular Strategies and How to Improve Them.
6. An Introduction to the Greeks.
7. Bull Call Spreads and Bull Put Spreads.
8. Two Basic Volatility Strategies.
9. Two Basic Sideways Strategies.
10. Trading and Investing Psychology.
11. Putting It All Together-A Call to Action.
12. Stock Futures and Options Strategies (Bonus Chapter).
Appendix I: Strategy Table.
Appendix II: Glossary.
References and Recommended Reading.
|1||pii||FT page outdated||fixed||3/14/2008|
|1||piii||new logo and paragraph||fixed||3/14/2008|
|1||piv||new logo and printing||fixed||3/14/2008|
|p36||3rd bullet point, 3rd line: ...strike price of 40, 140, 240, 340, and so on.||...strike price of 10, 110, 210, 310, and so on.||3/14/2008|
|1||p47||2nd sent: The option price has risen from $1 to $5 - this is an increase of 500%.||The option price has risen from $1 to $5 - this is an increase of 400%.||3/14/2008|
|1||p67||Last equation on page:
($42.00 -4)+ ($40.00x1)/5 = $41.60
|($42.00 x 4) + ($40.00 x 1)/5 = $41.60||3/14/2008|
|1||p112||Chart 4.5.1 Bar above 45.00 should have an A above it.||fixed||3/14/2008|
|1||p112||Elliott Wave Summary: I strongly recommend that you learn more about this by looking at The Market Matrix at www.themarketmatrix.co.uk.||I strongly recommend that you learn more about this by looking at Dynamic Trading by Robert Miner at www.dynamictraders.com||3/14/2008|
|1||p115||Diagram 5.1: Buy put image wrong, should look like Long put image on p293.||fixed||3/14/2008|
|1||p154||Under Risk: [call premium received] - [put premium paid] + [stock price paid - put strike price]||[put premium paid - call premium received] + [stock price - put strike]||3/14/2008|
|1||p161||Table, Strategy: Buy put image wrong, should look like Long put image on p293.||fixed||3/14/2008|
|1||p169||2nd bullet point: your options will increase by $5.00, and youll make $500 in profit, a profit of more than 170%.||your options will increase by $5.00, and youll make $500 in profit, a profit of more than 70%.||3/14/2008|
|1||p193||Example 6.4.2: Lets take HP on May 1, 2001. The stock price is $49.40 and well look at the December 2001 $50 strike calls and puts, which are priced at $7.50 and $6.90 respectively.||Staying with our Microsoft example where the stock price is $69, lets look at the January 2002 $70 strike calls and puts respectively.||3/14/2008|
|1||p207||Chart 7.4 moves to p208. ALL text from p219 is the rest of footnote and should be on this page.||fixed||3/14/2008|
|1||p219||ALL text from this page should be the footnote on p207. Added text: I emphasize that the above comparison is shown toillustrate that we do not do credit spreas that are In the Money. Therefore, the Bull Put spread in this exsample is something we would never even consider.||fixed||3/14/2008|
|1||p255||Condor with Calls, Step 1: Sell 1 lower strike (ITM) call||Buy 1 lower strike (ITM) call||3/14/2008|
|1||p255||Condor with Calls, Step 3: Buy 1 higher middle strike (OTM) call||Sell 1 higher middle strike (OTM) call||3/14/2008|
|1||last page||Ad updated||fixed||3/14/2008|
|9||pii||FT statement moved to p348||fixed||3/14/2008|
|9||piii||FT Press logo and paragraph removed||fixed||3/14/2008|
|9||piv||Vice President and Editor-in-Chief: Tim Moore||Vice President, Publisher: Tim Moore||3/14/2008|
|9||piv||Added text||Associate Publisher and Director of Marketing: Amy Neidlinger||3/14/2008|
|9||piv||FT Press logo removed||fixed||3/14/2008|
|9||pvii||page numbers right aligned and leader points added||fixed||3/14/2008|
|9||p23||Selling a put option obliges you to buy the underlying asset to the option buyer.||Selling a put option obliges you to buy the underlying asset from the option buyer.||3/14/2008|
|9||p22||Your reward is potentially unlimited.||Your reward is potentially unlimited until the stock falls to zero.||3/14/2008|
|1||p175||Mathematically speaking, gamma is the second derivative of delta. Therefore, if delta is a measure of speed, gamma is a measure of acceleration. Unlike the other Greeks, gamma is not a measure of the option price versus another parameter, but rather a measure of how delta moves against changes in the stock price.||Mathematically speaking, gamma is the first derivative of delta. Therefore, if delta is a measure of speed, gamma is a measure of acceleration. Gamma can be seen as the acceleration of the option price versus the underlying asset price, or as the speed of delta versus the underlying asset price.||5/14/2008|
|1||p294||Cover Put image updated
|1||p302||Diagonal Put image updated
|11||p81||PE Ratio < 30%
||PE Ratio < 30||9/4/2008|
|11||p147||What would happen if we had written the $25.00 strike call when BORT was trading at $28.20?||What would happen if we had written the $25.00 strike call when BORT was trading at $28.10?||9/4/2008|
|11||p154||[put premium paid - call premium received] + [stock price - put strike]||[stock price + put premium - put strike price - call premium]||9/4/2008|
|11||p248||Chart 9.1.3b FRE Long Call Butterfly risk profile (wide).||Chart 9.1.3b FRE Long Put Butterfly risk profile (wide).||9/4/2008|
ONE MONTH ACCESS!
Get unlimited 30-day access to thousands of Books & Training Videos about technology, professional development and digital media If you continue your subscription after your 30-day trial, you can receive 30% off a monthly subscription to the Safari Library for up to 12 months.