O'Reilly logo

Trading Options For Dummies, 2nd Edition by Joe Duarte

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Introduction

Welcome to Trading Options For Dummies, 2nd Edition!

This book is about introducing you to option strategies for managing risk and navigating a variety of market conditions. It’s geared to managing risk first, with the knowledge that profits will follow. With that in mind, the approaches described focus on reducing potential losses from traditional stock positions and building an option strategy repertoire that allows you to maximize your chances of making sound trades whether the markets are moving up, down, or sideways. To incorporate the comprehensive steps required when trading, it also provides discussions on market and sector analysis, as well as things to look for when trying out a new strategy.

An option contract is a unique security that comes with contract rights and obligations. When used correctly, an option contract strikes a balance between risk of loss, the amount of money you put at risk, and reward, providing you with leverage while still allowing you to reduce overall trade risk. Of course, there’s another side to that leverage, increased risk, which will be managed, which is the main reason you should take the time to read through this book carefully. You need to understand the risks and characteristics associated with these contracts.

When applying for options trading with your broker, the broker will send you the reference guide Characteristics ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required