Book description
Master option trading, visually, hands-on -- and discover the powerful, easy-to-use OVI indicator that leads the market, revealing what the world's savviest option traders are doing right now! Learn option trading from the newest edition of Guy Cohen's international best-seller Options Made Easy, which has earned a worldwide reputation for its simplicity, clarity and hands-on practicality. With outstanding graphics for step-by-step learning, this easy tutorial packed with real trades is designed to reinforce every new trader's learning experience.
Using plain English and clear illustrations to explain each key trading strategy, Cohen avoids complex math while effortlessly delivering the practical knowledge traders need. Now, in this eagerly-anticipated Third Edition, Cohen updates all examples and data, utilizing the market's new option symbols throughout, and presenting a more streamlined, focused, and up-to-date review of relevant chart patterns and technical analyses. Most important, he thoroughly introduces his breakthrough OVI indicator, revealing how it captures the implications of actual option transaction data, and presents signals even beginners can use to earn consistent profits. Step by step, Cohen walks traders through:
Filtering for stocks and selecting the right strategy for each situation
Implementing proven strategies for income, including covered calls and bull put spreads
Trading volatility through straddles and strangles
Using butterflies and condors to trade rangebound markets
Understanding trading psychology and its impact on option trades
And much more
Table of contents
- Title Page
- Copyright Page
- Praise for Options Made Easy
- Dedication Page
- Contents
- Acknowledgments
- About the Author
- Executive Summary
- Preface
-
Chapter 1. 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
- Notation Standard for the Examples
- Chapter 1 Major Learning Points
-
Chapter 2. Into the Marketplace
- How to Read Option Prices
- Options Contracts
- Option Exchanges
- Option Expiration Dates
- Strike Prices
- Option Ticker Symbols
- Margin
- Placing Your Trade
- 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
-
Chapter 3. The Basics of Fundamental Analysis
- Past History and Management
- News and Results
- Sentiment and Expectations
- The Wider Economy
- Economic Indicators to Watch (U.S. 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
-
Chapter 4. The Basics of Technical Analysis
- Three Ways to View Price Patterns
- Support and Resistance
- Double and Triple Tops and Bottoms
- Head and Shoulders
- Reverse Head and Shoulders
- Consolidation Patterns
- Fibonacci Retracements
- Elliott Wave
- Gann Levels
- Gaps
- Volume
- Technical Indicators
- Moving Averages
- Moving Average Convergence Divergence (MACD)
- Stochastics
- The Relative Strength Index (RSI)
- Different Time Frames
- More Technical Analysis Terminology
- The OVI
- Chapter 4 Major Learning Points
- Chapter 5. Two Popular Strategies and How to Improve Them
- Chapter 6. An Introduction to the Greeks
- Chapter 7. Bull Call Spreads and Bull Put Spreads
- Chapter 8. Two Basic Volatility Strategies
- Chapter 9. Two Basic Sideways Strategies
- Chapter 10. Trading and Investing Psychology
- Chapter 11. Putting It All Together—A Call to Action
- Chapter 12. Trading with the OVI
- Appendix I. Strategy Table
- Appendix II. Glossary
- References and Recommended Reading
- Index
Product information
- Title: Options Made Easy: Your Guide to Profitable Trading, Third Edition
- Author(s):
- Release date: April 2013
- Publisher(s): Pearson
- ISBN: 9780133087901
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