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Increasing Alpha With Options: Trading Strategies Using Technical Analysis and Market Indicators

Book Description

Innovative trading strategies, which combine the use of technical analysis, market indicators, and options

In the new world of investing, money managers must deal with a variety of dynamics, products, analyses, and risk controls. They are also expected to achieve above-benchmark performance and profits, also known as alpha, as well as protect capital in the process. This can be difficult to achieve in today's turbulent market environment, but with Increasing Alpha with Options, author Scott Fullman, the Director of Derivative Investment Strategy for WJB Capital Group, offers some solid solutions.

Written in a straightforward and accessible style, this reliable resource outlines various trading strategies using a combination of technical analysis, market indicators, and options. Along the way, it skillfully details how these analytical techniques can help you capture profits while also protecting positions from adverse market conditions.

  • Details the varying elements of technical analysis, from chart type and analysis period to time itself

  • Highlights how to build strategies around reversal and continuation patterns, oscillators, and exchange-traded funds

  • Reveals how you can exploit small inefficiencies in the options marketplace

Filled with in-depth insights and expert advice, Increasing Alpha with Options will quickly familiarize you with everything from the various elements of technical analysis to leveraging the power of options, and show you how applying these tools and techniques to your trading or investing endeavors can improve overall performance.

Table of Contents

  1. Title Page
  2. Copyright Page
  3. Dedication
  4. Acknowledgments
  5. Introduction
    1. The Prime Directive
    2. Why Technical Analysis?
    3. Technical Analysis and Time Management
    4. Strategies
    5. Maximizing Profit, Minimizing Risk
  6. CHAPTER 1 - Why Technical Analysis?
    1. Bases
    2. Fundamentals vs. Technicals
    3. Tops
  7. CHAPTER 2 - The Basics of Technical Analysis
    1. Understanding Chart Types
    2. Trend Properties
    3. The Trend Is Your Friend
    4. Volatile or Negative Markets
    5. Primary and Secondary Trends
    6. First Strategy
    7. Put Hedges
    8. Implied Volatility
    9. Seasonal Trends
    10. Cyclical Trends
    11. Moves within Moves
    12. Nontrends
    13. Understanding the Properties of Trends
  8. CHAPTER 3 - Trends and Their Ends
    1. Elliott Waves and Common Trend Analysis
    2. Nesting Patterns
    3. Continuation Patterns
    4. Continuation or Reversal?
    5. Opposing Reversal Patterns
  9. CHAPTER 4 - Building Strategies around Reversal and Continuation Patterns
    1. Spotting Reversal and Continuation Patterns
    2. Confirming Patterns Using Different Time Frames
    3. Building Pattern- Based Strategies
    4. More Complex Patterns: The Double Top
    5. Continuation Patterns
    6. An Amazon.Com Example
  10. CHAPTER 5 - Oscillators
    1. Oscillator Types
    2. Stochastic Oscillator
    3. Commodity Channel Index
    4. Bollinger Bands
  11. CHAPTER 6 - Oscillators and Strategies
    1. Technical Indicators
    2. Relative Performance
    3. Finding the Strongest or Weakest Stocks
    4. Money Flow and On- Balance Volume
  12. CHAPTER 7 - Relative Performance
    1. Look at the Board
  13. CHAPTER 8 - ETF Strategies
    1. Pairs
  14. CHAPTER 9 - Efficient Pricing—Mostly
    1. Exploiting Small Pricing Inefficiencies
  15. CHAPTER 10 - The Subprime Mortgage Crisis and Options
    1. Managing Delta
    2. Delta Relationships of Stocks and Options
  16. CHAPTER 11 - The Other Greeks
    1. Other Products
    2. Ex-Dividend Trades
    3. Getting Information from the Exchange Floor
  17. CHAPTER 12 - When Conditions Change
    1. Routine Changes
    2. The Extremes
    3. Meet the New Rules
  18. CHAPTER 13 - The Changing Environment
    1. Controlling Risk, Fixing Problems
    2. Using Global Markets
  19. CHAPTER 14 - Using Options to Protect Capital
    1. What Doesn’t Work
    2. Single Security Hedges
    3. Collar Hedges for Long Stock Positions
    4. Other Hedges for Offsetting High Volatility Levels
    5. Stock Replacement Therapy
  20. CHAPTER 15 - Hedging the Broad Portfolio
    1. Reducing Hedge Costs
    2. Pairing Up
    3. Hedging Short Portfolios
    4. Other Hedge Types
  21. CHAPTER 16 - When to Invest, When to Trade
    1. Investors and Investment Markets
    2. Trading an Investment Trend
    3. The Trading Market
    4. Japanese Candlesticks
    5. Other Investment and Trading Opportunities
    6. Upcoming Events
    7. Mergers and Acquisitions
  22. CHAPTER 17 - All About Resources
    1. Abundance of Resources
    2. Bloomberg Professional Service
    3. MetaStock Professional Service
    4. SuperCharts, Worden Brothers, and Others
    5. Chart Books
    6. Scanning Techniques
    7. Options Resources
    8. Other Helpful Resources from Bloomberg
    9. iVolatility
    10. Resources for Smaller Funds
    11. Risk and Position Monitoring
    12. Different Funds, Different Vendors
    13. Other Information Sources
  23. APPENDIX - Information Sources
  24. Index