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Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks » (1ST)

Book cover image of Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks by Ed Olmstead

Authors: Ed Olmstead, W. Edward Olmstead
ISBN-13: 9780131721289, ISBN-10: 0131721283
Format: Hardcover
Publisher: FT Press
Date Published: March 2006
Edition: 1ST

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Author Biography: Ed Olmstead

Dr. W. Edward Olmstead is the editor of The Options Professor, one of the world’s leading newsletters on options trading. He is also an options analyst for Spear Capital Management. He has consulted on short-term trading strategies with a member company of the Chicago Mercantile Exchange.

Dr. Olmstead is Professor of Applied Mathematics in the McCormick School of Engineering and Applied Sciences at Northwestern University. He has taught courses that cover both the theory for options pricing and practical strategies for trading options. Dr. Olmstead has received several awards including an endowed chair for teaching excellence and has been praised by his colleagues as “the quintessential teacher in our midst.”

Book Synopsis

Brief, carefully paced lessons on options and trading strategies using verbal definitions and many trading examples for clarification. Each lesson builds on the one preceding it and explains options in plain English, from start to finish. Step-by-step coverage of controlling risk, protecting your investments — even advanced strategies other introductory books ignore! Authored by Dr. W. Edward Olmstead, contributing editor to The Spear Report and editor of The Options Professor newsletter.

Table of Contents

Sect. IBasic concepts1
1Introduction3
2Option selection17
3Entering and exiting option trades27
4The Greeks33
5Risk graphs41
6Leaps47
7Assignment anxiety53
8Broker selection59
9Miscellaneous tips63
Sect. IITrading strategies69
10Vertical spreads71
11Event-producing credit spreads79
12Calendar spreads87
13Advanced calendar spreads95
14Covered calls107
15Straddles and strangles115
16Stock repair and stock enhancement123
17Married puts131
18Collars137
19Advanced collars145
20Naked option writing153
21Stock substitutes161
22Backspreads169
23Butterfly spreads177
24Iron condors and double diagonals185
25An end-of-year tax strategy191
Sect. IIISpecial topics199
26Day trading an index with options201
27Delta-neutral trading205
28Theory of maximum pain211
29Implied volatility and the Black-Scholes formula215
30The put-call parity relationship221

Subjects