Fundamentals of Equity Options

If you own a stock portfolio, large or small, and are unfamiliar with options investing, this is the book for you. Owning stocks of sound businesses is an excellent way to invest for the long term. They bring in income and capital gain to ensure your equity portfolio keeps up with, or exceeds, long term inflation. Equity options play a variety of roles. They enable you to buy stocks at a discount and sell at a price above the current market level. They can protect against losses in falling markets and leverage gains in rising. They pay a premium over and above normal stock dividends. With a sound knowledge of the fundamentals of your stocks, options can increase their return and reduce the risks of owning them. This book is a comprehensive introduction to explain the fundamentals, the terminology and how to buy and sell equity options. It shows how to obtain higher rewards with less risk. It continues with fifteen worked examples of basic calls and puts, spreads, straddles, strangles and collars. It explains how each strategy enables you to generate profits in rising, falling or sideways markets. A major feature is the use of high quality diagrams and graphs for easier understanding. Nine appendices contain a mine of useful information. You could well pay for the cost of this book ten times over with your first option trade. Then you could go on to significantly increase the value of your stock portfolio.