Book description
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
Table of contents
- Copyright
- Acknowledgments
- About the Author
- Executive Summary
- Preface
-
Introduction to Options
- Criteria for Successful Investing
- Risk Profile Charts
- The Definition of an Option
- The Valuation of Options
- Intrinsic and Time Value for Calls
- Intrinsic and Time Value for Puts
- The Seven Factors that Influence an Option’s Premium
- Risk Profile Charts for Call Options
- Risk Profile Charts for Put Options
- Memory Tips for Long and Short Calls and Puts
- Basic Risk Profiles Summary
- Chapter 1 Major Learning Points
-
Into the Marketplace
- How to Read Option Prices
- Option Contracts
- Option Exchanges
- Option Expiration Dates
- Exercise Prices
- Option Ticker Symbols
- Margin
- Placing Your Trade Order
- Types of Order in the Market
- Time Limits with Trade Orders
- Always Have a STOP in Mind Whenever You Make a Trade
- Trading Tips
- Leverage and Gearing
- A Brief Introduction to Delta (Hedge Ratio)
- Chapter 2 Major Learning Points
-
The Basics of Fundamental Analysis
- Past History and Management
- News and Results
- Sentiment and Expectations
- The Wider Economy
- Economic Indicators to Watch (USA Only)
- Bonds
- Supply and Demand
- Corporate Fundamentals
- Key Financial Terms
- Key Financial Figures and Ratios
- Search Criteria and Screening Filters for Fundamentals
- Common Sense and Being Alert
- Chapter 3 Major Learning Points
-
The Basics of Technical Analysis
- Three Ways to View Price Patterns
- Basic Chart Patterns
- Support and Resistance
- Double and Triple Tops and Bottoms
- Head and Shoulders
- Reverse Head and Shoulders
- Consolidations—Pennants, Triangles, and Wedges
- Fibonacci Retracements
- Elliott Wave
- Gann Levels
- Gaps
- Volume
- Technical Analysis Indicators
- Moving Averages
- Moving Average Convergence Divergence (MACD)
- Stochastics
- The Relative Strength Index (RSI)
- Different Time Frames
- More Technical Analysis Terminology
- Chapter 4 Major Learning Points
- Two Popular Strategies and How to Improve Them
- An Introduction to the Greeks
- Bull Call Spreads and Bull Put Spreads
- Two Basic Volatility Strategies
- Two Basic Sideways Strategies
- Trading and Investing Psychology
- Putting It All Together—A Call to Action
- Stock Futures and Options Strategies (Bonus Chapter)
- Strategy Table
- Glossary
-
References and Recommended Reading
- Financial Times Press
- Financial Times Prentice Hall Books
Product information
- Title: Options Made Easy: Your Guide to Profitable Trading, Second Edition
- Author(s):
- Release date: July 2005
- Publisher(s): Pearson
- ISBN: 0131871358
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