What Are Your Options? : Essential Guide on Options & Profitable Option Strategies (Edition 1) (Knowledge Creates Wealth Book 2)
Book Details
Author(s)B P Terence TEO
PublisherTEO, B P Terence
ISBN / ASINB006GR7HQG
ISBN-13978B006GR7HQ5
Sales Rank1,099,585
MarketplaceUnited States 🇺🇸
Description
Readable on Kindle and other devices. No restrictions.
This is NOT a public domain book. Please respect non-distribution and copyrights.
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What Are Your Options? is a complete guide on options and comprehensive revision material on option strategies.
What Are Your Options? shows you how with just a small amount of investment capital, and armed with the necessary knowledge of winning Option Strategies, you can achieve financial success and attain financial independence.
It is aimed at the beginner looking for complete explanations on Options and its terminologies and the intermediate options trader seeking to improve trading performance and profits.
Options theories and practical usage of Option Strategies are carefully explained in an easy to understand manner.
Several profitable Option Strategies, both basic and advance, such as Call/Put Spreads , Ratio Spreads, Butterflies and Condors, are also detailed, complete with examples using real time price data, risk/reward analyses and graphical representations to help readers visualize the options trades.
What Are Your Options? covers :
AN OVERVIEW – OPTIONS BASICS
What are Options? Why are they considered financial leveraged derivatives? What are the different kinds of Options? What components make up the option value? What are contract sizes, strike prices and expirations? These and other elementary concepts are presented in this section, to give an overall macro picture, and will lead us logically into the succeeding sections.
VANILLA OPTIONS – CALLS AND PUTS
Call and Put options, by themselves, are known as Vanilla options. The profit and loss profiles of buying and selling vanilla options are explained with highlights on the pitfalls of naked vanilla SHORT options.
â€MONEY-ness†– ITM/ATM/OTM
What it means to be In-The-Money, At-The-Money or Out-Of-Money - is determined by the relationship of strike price to the underlying asset price. Why do traders choose certain “money-ness†options over others? This is explained here.
OVERVIEW OF OPTION STRATEGIES
Vanilla options can be purposefully combined to form option strategies. This section broadly explores these strategies.
BASIC OPTION STRATEGIES
- Vertical Spreads
- LONG Ratio Spreads
When used appropriately, options can limit risk exposures and increase the probability of profitability. Vertical spreads, such as LONG Call/Put spreads, offer traders the chance of profiting without the worry about huge risks. Ratio spreads are made up of vanilla options and can be structured to offer potentially higher chances of profiting, but they come at a price.
OPTIONS VALUE
How do options derive their values? In a gist, options values are a function of several key variables, such as options strike price, time to expiration and others. This section gives the details.
ADVANCE OPTION STRATEGIES
- LONG Butterfly
- LONG Condor
Butterflies, often referred in abbreviation as “flies†and condors are slightly more advanced option strategies that are characterized by their limited profit potential and limited liability. This section shows the use of ITM/ATM/OTM options to create directional and/or non-directional bias option strategies.
OPTION GREEKS
Greek alphabets are used to describe options. This section offers concise explanations of the key option Greeks that every options student and trader must comprehend. Delta, Gamma, Theta, Vega and Rho affect the choices of which options to trade.
In case you were looking for a “get rich quick†book, this is not it. Options trading is never a way to instant riches. If it was, everyone would be trading options by now. Nothing quite useful can be achieved without the accompanying effort to learn and this book offers that education.
Thank you and enjoy the book!
Yours sincerely,
TEO, BP Terence
PS: I intend to donate 5% of the sales revenue to charity. You can indicate your preferred category of charity to my email, which is found at the end of the epilogue section.
This is NOT a public domain book. Please respect non-distribution and copyrights.
--------------------
What Are Your Options? is a complete guide on options and comprehensive revision material on option strategies.
What Are Your Options? shows you how with just a small amount of investment capital, and armed with the necessary knowledge of winning Option Strategies, you can achieve financial success and attain financial independence.
It is aimed at the beginner looking for complete explanations on Options and its terminologies and the intermediate options trader seeking to improve trading performance and profits.
Options theories and practical usage of Option Strategies are carefully explained in an easy to understand manner.
Several profitable Option Strategies, both basic and advance, such as Call/Put Spreads , Ratio Spreads, Butterflies and Condors, are also detailed, complete with examples using real time price data, risk/reward analyses and graphical representations to help readers visualize the options trades.
What Are Your Options? covers :
AN OVERVIEW – OPTIONS BASICS
What are Options? Why are they considered financial leveraged derivatives? What are the different kinds of Options? What components make up the option value? What are contract sizes, strike prices and expirations? These and other elementary concepts are presented in this section, to give an overall macro picture, and will lead us logically into the succeeding sections.
VANILLA OPTIONS – CALLS AND PUTS
Call and Put options, by themselves, are known as Vanilla options. The profit and loss profiles of buying and selling vanilla options are explained with highlights on the pitfalls of naked vanilla SHORT options.
â€MONEY-ness†– ITM/ATM/OTM
What it means to be In-The-Money, At-The-Money or Out-Of-Money - is determined by the relationship of strike price to the underlying asset price. Why do traders choose certain “money-ness†options over others? This is explained here.
OVERVIEW OF OPTION STRATEGIES
Vanilla options can be purposefully combined to form option strategies. This section broadly explores these strategies.
BASIC OPTION STRATEGIES
- Vertical Spreads
- LONG Ratio Spreads
When used appropriately, options can limit risk exposures and increase the probability of profitability. Vertical spreads, such as LONG Call/Put spreads, offer traders the chance of profiting without the worry about huge risks. Ratio spreads are made up of vanilla options and can be structured to offer potentially higher chances of profiting, but they come at a price.
OPTIONS VALUE
How do options derive their values? In a gist, options values are a function of several key variables, such as options strike price, time to expiration and others. This section gives the details.
ADVANCE OPTION STRATEGIES
- LONG Butterfly
- LONG Condor
Butterflies, often referred in abbreviation as “flies†and condors are slightly more advanced option strategies that are characterized by their limited profit potential and limited liability. This section shows the use of ITM/ATM/OTM options to create directional and/or non-directional bias option strategies.
OPTION GREEKS
Greek alphabets are used to describe options. This section offers concise explanations of the key option Greeks that every options student and trader must comprehend. Delta, Gamma, Theta, Vega and Rho affect the choices of which options to trade.
In case you were looking for a “get rich quick†book, this is not it. Options trading is never a way to instant riches. If it was, everyone would be trading options by now. Nothing quite useful can be achieved without the accompanying effort to learn and this book offers that education.
Thank you and enjoy the book!
Yours sincerely,
TEO, BP Terence
PS: I intend to donate 5% of the sales revenue to charity. You can indicate your preferred category of charity to my email, which is found at the end of the epilogue section.
