You are previewing Profiting from Weekly Options: How to Earn Consistent Income Trading Weekly Option Serials.
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Profiting from Weekly Options: How to Earn Consistent Income Trading Weekly Option Serials

Book Description

Generate consistent income with a smart weekly options strategy

Profiting From Weekly Options is a clear, practical guide to earning consistent income from trading options. Rather than confuse readers with complex math formulas, this book concentrates on the process of consistently profiting from weekly option serials by utilizing a series of simple trades. Backed by the author's thirty years of experience as a professional option trader and market maker, these ideas and techniques allow active individual traders and investors to generate regular income while mitigating risk. Readers will learn the fundamental mechanisms that drive weekly options, the market forces that affect them, and the analysis techniques that help them manage trades.

Weekly options are structured like conventional monthly options, but they expire each week. Interest has surged since their inception three years ago, and currently accounts for up to thirty percent of total option volume, traded on all major indices as well as high volume stocks and ETFs. This book is a guide to using weekly options efficiently and effectively as income-generating investments, with practical guidance and expert advice on strategy and implementation.

  • Discover the cycles and market dynamics at work

  • Learn essential fundamental and technical analysis techniques

  • Understand the option trading lexicon and lifecycle

  • Gain confidence in managing trades and mitigating risk

  • Weekly options can be integrated with any existing options strategy, but they are particularly conducive to credit spread strategies and short-term trades based on technical patterns. For investors looking for an easy-in/easy-out method of generating consistent income, Profiting From Weekly Options provides the wisdom of experience with practical, actionable advice.

    Table of Contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Dedication
    5. Contents
    6. Foreword
    7. PREFACE
    8. Acknowledgments
    9. CHAPTER 1: Market Psychology: the Mind–Set of a Trader
      1. The Herd Mentality: Bubbles
      2. The South Sea Bubble 1711–1721: Trade, War, and Government Collusion
      3. The Cotton Panic of 1837: Land, Commodities, and Government
      4. The Panic of 1893: Railroads Have No Upper Limit
      5. September 11, 2001: Price Can Never Go up Again
      6. The Commodity Bubble of 2008: Price Can Never Go Down Again
      7. Bitcoin 2009 to Present: Crypto- Currency Meets Greed
      8. Lessons to Be Learned
      9. Chapter 1 Quiz
    10. CHAPTER 2: Modern Markets
      1. Equity Markets
      2. Liquidity
      3. Flow of Funds
      4. Futures Markets: Origins
      5. Calculating Future Contract Values
      6. Tick Size
      7. Margin
      8. Stock Index Futures
      9. Index Futures versus Stock
      10. Forex: Currencies
      11. Options
      12. Summary
      13. Chapter 2 Quiz
    11. CHAPTER 3: Technical versus Fundamental Price Analysis
      1. Summary
      2. Chapter 3 Quiz
    12. CHAPTER 4: Phases of the Market
      1. Congestion
      2. Breakout to the Trend
      3. Blowoff
      4. Summary
      5. Chapter 4 Quiz
    13. CHAPTER 5: The Relationship of Time and Price
      1. Summary
      2. Chapter 5 Quiz
    14. CHAPTER 6: Introduction to Options
      1. Basic Option Glossary
      2. Working Option Vocabulary
      3. Summary
      4. Chapter 6 Quiz
    15. CHAPTER 7: The Option Model
      1. Games of Chance
      2. Air in the Balloon
      3. Summary
      4. Chapter 7 Quiz
    16. CHAPTER 8: The Option Chain
      1. Summary
      2. Chapter 8 Quiz
    17. CHAPTER 9: Option Trading Strategies
      1. Why Selling Naked Options Is Always Wrong!
      2. Suitable Option Trades
      3. The Credit Spread
      4. Summary
      5. Chapter 9 Quiz
    18. CHAPTER 10: Why Trade Weekly Options?
      1. Buying a Call or a Put Outright
      2. Summary
      3. Chapter 10 Quiz
    19. CHAPTER 11: Midterm Review
      1. Psychology
      2. Liquidity
      3. Market Pricing
      4. Phases of the Market
      5. Relationship of Time and Price
      6. Option Vocabulary
      7. Summary
      8. Test for Chapters 1 – 10
    20. CHAPTER 12: Standard Deviation—the Mathematics of the Price Cycle
      1. Summary
      2. Chapter 12 Quiz
    21. CHAPTER 13: Trading in a Congestion Phase of the Market
      1. Trade One: Buying an Outright Option
      2. Trade Two: Credit Spreads
      3. Trade Three: Risk Reversals
      4. Trade Four: Backspread (1 × 2 for Even)
      5. Summary
      6. Chapter 13 Quiz
    22. CHAPTER 14: Trading in a Trending Phase of the Market
      1. Trade One: Buying an Outright Option
      2. Trade Two: Credit Spreads
      3. Trade Three: Risk Reversals
      4. Trade Four: Backspread (1 × 2 for Even)
      5. Summary
      6. Chapter 14 Quiz
    23. CHAPTER 15: Trading in the Blowoff Phase of the Market
      1. Trade One: Buying an Outright Option
      2. Trade Two: Credit Spreads
      3. Trade Three: Risk Reversals
      4. Trade Four: Backspread (1 × 2 for Even)
      5. Summary
      6. Chapter 15 Quiz
    24. CHAPTER 16: Selecting a Portfolio to Trade
      1. Liquidity
      2. Volatility
      3. Diversification by Product
      4. Diversification by Dollar Risk
      5. Summary
      6. Chapter 16 Quiz
    25. CHAPTER 17: Managing Your Equity
      1. Risk of Ruin
      2. Risk Capital
      3. Volatility
      4. Win Rate
      5. Starting Capital
      6. Summary
      7. Chapter 17 Quiz
    26. CHAPTER 18: Organizing Trades and FAQs
      1. Step One: Observing Your Portfolio
      2. Step Two: Observing the Major Trend and Making a Trade
      3. Step Three: The Amount of Equity Needed to Trade Each Strategy
      4. Frequently Asked Questions
      5. Summary
      6. Final Exam: 100 Questions
    27. APPENDIX I: Answers to the Chapter Quizzes
      1. Chapter 1
      2. Chapter 2
      3. Chapter 3
      4. Chapter 4
      5. Chapter 5
      6. Chapter 6
      7. Chapter 7
      8. Chapter 8
      9. Chapter 9
      10. Chapter 10
      11. Chapter 11 Midterm
      12. Chapter 12
      13. Chapter 13
      14. Chapter 14
      15. Chapter 15
      16. Chapter 16
      17. Chapter 17
      18. Chapter 18 Final
    28. APPENDIX II: Days until Expiration Straddle Values Bold Indicates a Weekend
    29. GLOSSARY OF OPTION TERMS
    30. ABOUT THE AUTHOR