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Trading Options: Using Technical Analysis to Design Winning Trades, + Website

Book Description

A thorough guide to technical analysis methods applied for success in the options market

Though still not widely practiced or accepted in the options market, technical analysis is becoming increasingly common. As the practice spreads, traders are discovering how useful technical analysis is for determining clear entry and exit signals. Trading Options: Using Technical Analysis to Design Winning Trades takes the standard technical analysis approach and applies it to the options market. Author Greg Harmon combines technical analysis with a deep understanding of the options market to explain how to design technically created trades that lead to outsized gains with low costs of entry and managed risk. The book covers trend determination, security identification and selection, tools and trade design, and executing, hedging, and adjusting trades.

  • Ideal for individual investors and options traders

  • Identifies and applies mainstream technical analysis methods to the volatile options market

  • Perfect for stock traders that wish to delve in to technical analysis and options

  • Written by the founder of Dragonfly Capital Management, which provides daily technical analysis of securities markets and trade ideas, and CIO of Presidium Capital Management which provides money management for clients

Table of Contents

  1. Cover
  2. Half Title
  3. Series Page
  4. Title Page
  5. Copyright Page
  6. Dedication
  7. Foreword
  8. Introduction
  9. Part I: Identifying and Understanding the Trend
    1. Chapter 1: Identifying the Major Trend
      1. Market Influencers and Intermarket Relationships
      2. Significant Market Ratios
      3. Other Indicators
      4. Conclusion
    2. Chapter 2: Sector Review Analysis
      1. Case Study: Sector Ranking
      2. Relative Strength
      3. Conclusion
  10. Part II: Technical Analysis for Identifying Individual Stocks
    1. Chapter 3: Classical Technical Analysis
      1. Support and Resistance
      2. Patterns
      3. Conclusion
    2. Chapter 4: Japanese Candlestick Patterns
      1. Reversal Patterns
      2. Continuation Patterns
      3. Indecision Candles
      4. Conclusion
    3. Chapter 5: Derived and Quantitative Analysis
      1. Fibonacci Analysis
      2. Harmonic Trading
      3. Elliott Wave
      4. Andrews’ Pitchfork
      5. Conclusion
    4. Chapter 6: Price Derivatives, Momentum, and Other Indicators
      1. Relative Strength Index (RSI)
      2. Moving Average Convergence/Divergence (MACD) Indicator
      3. Bollinger Bands
      4. Moving Averages
      5. Conclusion
    5. Chapter 7: The Watch List and Initial Plan
      1. Create the Mosaic
      2. Other Information
      3. The Plan
      4. Conclusion
  11. Part III: Options Strategies
    1. Chapter 8: Introduction to Options
      1. Definitions
      2. Expiration and Exercise
      3. Contract Size
      4. Price Terminology
      5. Why Use Options
      6. How Different from Stock
      7. Options Tables
      8. Some Basics Applied
      9. Conclusion
    2. Chapter 9: Options Combinations
      1. Covered Call or Buy Write
      2. Long a Put or Call
      3. Short a Put or Call
      4. Long a Put Spread or Call Spread
      5. Short a Put Spread or Call Spread
      6. Long a Ratio Put or Call Spread
      7. Long or Short a Calendar
      8. Long or Short a Diagonal
      9. Long or Short a Butterfly
      10. Long or Short a Straddle
      11. Long or Short a Strangle
      12. Long or Short an Iron Condor
      13. Long or Short a Risk Reversal
      14. Conclusion
  12. Part IV: Design and Execution
    1. Chapter 10: The Elements of Design
      1. The Elements
      2. Position Sizing and Stop Losses
      3. Conclusion
    2. Chapter 11: Trading Plan
      1. What to Look For
      2. Conclusion
    3. Chapter 12: Execution and Beyond
      1. Execution
      2. Hedging, Profit Taking, and Adjustments
      3. Conclusion
  13. Conclusion
  14. Additional Resources
    1. Books
    2. Websites
  15. About the Companion Website
  16. About the Author
  17. Index