Updated throughout, this edition contains new chapters assessing the current options landscape, discussing margin collateral issues, and introducing Cohen’s exceptionally valuable OVI indicators.
The Bible of Options Strategies, Second Editionis practical from start to finish: modular, easy to navigate, and thoroughly cross-referenced, so you can find what you need fast, and act before your opportunity disappears. Cohen systematically covers every key area of options strategy: income strategies, volatility strategies, sideways market strategies, leveraged strategies, and synthetic strategies.
Even the most complex techniques are explained with unsurpassed clarity – making them accessible to any trader with even modest options experience. More than an incredible value, this is the definitive reference to contemporary options trading: the one book you need by your side whenever you trade. For all options traders with at least some experience.
Guy Cohen is the creator of OptionEasy, the world’s most comprehensive and user-friendly online options trading and training application. A successful private investor and trader, Guy has developed a global reputation for transforming the fortunes of private investors through his complete trading solution. Guy is author of the global bestseller Options Made Easy, the definitive plain-English guide to options trading for private investors. He is also the creator of the OVI Indicator and other trading applications including FlagTrader. He holds an MBA in finance from Cass Business School, London, UK.
For more information, go to www.ovitraders.com.
For all inquiries, write to email@example.com.
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
An option is a binding contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date ¨C it has strictly defined terms and properties.
Options are very versatile and allow you to change your position according to the situation ¨C they can be speculative or conservative depending on your trading strategy, but the risk can be mitigated by having a firm basic understanding.
The Made Simple series is the perfect vehicle for this content as readers are taken step©\by©\step through everything they need to know about trading options ¨C including what can go wrong! ¨C and can work out which strategies they are most comfortable with.
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
This book will teach you how options market works with illustrations and real trading examples.
Handbook on Options Trading will cover:
• Introduction to the options market
• Basics of call and put options
• Options buying versus options selling
• Options evaluation and pricing
• Guide to non-directional trading
• Role of psychology to avoid mistakes in trading
• Trading strategies and real case studies
Filled with plenty of examples and case studies, this guide will show traders how options sellers can apply a high probability winning strategy.
Why This Book? (Message from the Author)
Having traded for more than a decade and been a full-time trader, on many occasion I have often been asked, “What do I do for a living?” Although I have some business with some partners going on, my main income does come from trading. Whenever I reply, “I trade for a living,” I get many different responses. The common response is:
“Isn’t that risky?”
“You must be making a killing since the market has been going on a bull run for the last two months.”
“Are you affected by the recent market crash?”
“Which stocks should I buy?”
“Any insider info?”
These are among the questions I have been swamped with whenever the subject of trading is brought up. What every trader is looking for is the secret formula to making money, but nothing could be further than the truth; there is no secret formula, or at least I have not found it yet. Most of the people I talk to have no idea about non-directional trading. In this book I present to you a completely different kind of trading. Open up your mind, think outside the box, and you might have a better chance of surviving in the cruel trading arena.
Most of the people who trade lose money; only a minority really make money and make good money. If we can identify what is common amongst these people, we might be able to increase our odds of winning. Most traders try to predict the market direction. They attend course after course, read book after book, and purchase software after software, with only one objective, which is to know where the market is heading. Once they can identify where the market is heading they will make a lot of money. This is directional trading. It is never easy to predict or know where the market is really heading. The easiest way and most uncommon way is to predict where market is not heading; this will be the core of this book – non-directional trading. Most people lose money in trading doing directional trading, so it’s time for us to think outside the box. Why not be the minority that is doing non-directional trading and try to win with the odds in your favour?
Start reading the book now!
Bassetti, a client, friend, and student of John Magee, one of the original authors, has converted the material on the craft of manual charting with TEKNIPLAT chart paper to modern computer software methods. In actuality, none of Magee’s concepts have proven invalid and some of his work predated modern concepts such as beta and volatility. In addition, Magee described a trend-following procedure that is so simple and so elegant that Bassetti has adapted it to enable the general investor to use it to replace the cranky Dow Theory. This procedure, called the Basing Points procedure, is extensively described in the new Tenth Edition along with new material on powerful moving average systems and Leverage Space Portfolio Model generously contributed by the formidable analyst, Ralph Vince., author of Handbook of Portfolio Mathematics.
See what’s new in the Tenth Edition:
Chapters on replacing Dow Theory Update of Dow Theory Record Deletion of extraneous material on manual charting New chapters on Stops and Basing Points New material on moving average systems New material on Ralph Vince’s Leverage Space Portfolio Model
So much has changed since the first edition, yet so much has remained the same. Everyone wants to know how to play the game. The foundational work of the discipline of technical analysis, this book gives you more than a technical formula for trading and investing, it gives you the knowledge and wisdom to craft long-term success.
"The author delivers clarity, insight and perception making learning about options a joy, and practicing the art of making money that much easier: truly a bible from a guru."
–Alpesh B. Patel, Author and Financial Times Columnist
"Guy Cohen truly makes learning about options easy in this fact-filled guide. Bullet points make for a quick and enlightened read, getting to the heart of what you really need to know about each options strategy. This book is a must for any serious trader's library."
–Price Headley, Founder, BigTrends.com
Pick the right options strategies...implement them step-by-step...maximize your profits!
Introducing today's first and only comprehensive reference to contemporary options trading!
OptionEasy creator Guy Cohen identifies today's popular strategies...and tells you exactly how and when to use each one and what hazards to look out for! It's all here....
Basic Strategies including
Buying and shorting shares, calls, and puts.
Income Strategies including
Covered Call, Naked Put, Bull Put Spread, Bear Call Spread, Long Iron Butterfly, Long Iron Condor, Calendar Call, Diagonal Call...
Vertical Spreads including
Bull Call Spread, Bull Put Spread, Bear Call Spread, Bear Put Spread, Ladders...
Volatility Strategies including
Straddle, Strangle, Guts, Short Butterflies, Short Condors...
Sideways Strategies including
Short Straddle, Short Strangle, Short Guts, Long Butterflies, Long Condors...
Leveraged Strategies including
Call Ratio Backspread, Put Ratio Backspread, Ratio Spreads...
Synthetic Strategies including
Collar, Synthetic Call, Synthetic Put, Synthetic Straddles, Synthetic Futures, Combos, Box Spread...
...and many more strategies...
Plus essential tax-saving information, and more!
No other book presents this much authoritative, current information on options trading strategies
Covers all of today's best income, volatility, leveraged, synthetic, and sideways market strategies
Discover why each strategy works, when it's appropriate, and how to use it—step by step
Includes a full chapter on tax issues associated with options strategies
By Guy Cohen, whose OptionEasy application has helped thousands of traders achieve breakthrough results!
The Bible of Options Strategies is the definitive reference to contemporary options trading: the one book you need by your side whenever you trade.
Options expert Guy Cohen systematically presents today's most effective strategies for trading options: how and why they work, when they're appropriate, when they're inappropriate, and how to use each one responsibly and with confidence. The only reference of its kind, this book will help you identify and implement the optimal strategy for every opportunity, trading environment, and goal.
© Copyright Pearson Education. All rights reserved.
Three options best-sellers, one great price! Guy Cohen introduces options in plain English, so you can start earning profits fast. W. Edward Olmstead teaches step-by-step how to control risk, safeguard investments, and much more. Then, Michael Thomsett presents 12 conservative strategies for hedging losses, mitigating risk, creating income, and increasing overall returns.
From world-renowned leaders and experts, including Guy Cohen, Dr. W. Edward Olmstead, and Michael C. Thomsett.
Ce livre considère le traitement de problèmes d'optimisation de grande taille. L'idée est d'éclater le problème d'optimisation global en sous-problèmes plus petits, donc plus faciles à résoudre, chacun impliquant l'un des sous-systèmes (décomposition), mais sans renoncer à obtenir l'optimum global, ce qui nécessite d'utiliser une procédure itérative (coordination). Ce sujet a fait l'objet de plusieurs livres publiés dans les années 70 dans le contexte de l'optimisation déterministe. Nous présentans ici les principes essentiels et méthodes de décomposition-coordination au travers de situations typiques, puis nous proposons un cadre général qui permet de construire des algorithmes corrects et d'étudier leur convergence. Cette théorie est présentée aussi bien dans le contexte de l'optimisation déterministe que stochastique. Ce matériel a été enseigné par les auteurs dans divers cours de 3ème cycle et également mis en œuvre dans de nombreuses applications industrielles. Des exercices et problèmes avec corrigés illustrent le potentiel de cette approche.
This book discusses large-scale optimization problems involving systems made up of interconnected subsystems. The main viewpoint is to break down the overall optimization problem into smaller, easier-to-solve subproblems, each involving one subsystem (decomposition), without sacrificing the objective of achieving the global optimum, which requires an iterative process (coordination). This topic emerged in the 70’s in the context of deterministic optimization. The present book describes the main principles and methods of decomposition-coordination using typical situations, then proposes a general framework that makes it possible to construct well-behaved algorithms and to study their convergence. This theory is presented in the context of deterministic as well as stochastic optimization, and has been taught by the authors in graduate courses and implemented in numerous industrial applications. The book also provides exercises and problems with answers to illustrate the potential of this approach.
More fortunes are made from trading stocks than any other financial instrument, and these windfalls are available to anyone who has access to the right information.
Presenting the methods used by the best traders in the market, The Insider Edge: How to Follow the Insiders for Windfall Profits uses options transaction data to reveal what "informed traders" are doing, and how anyone can take advantage of these techniques.
Whether the markets are choppy or trending, it always pays to wait for a clear opportunity. Any good trader knows that they need an Edge to excel, and this book demonstrates how the combination of specific chart patterns, author Guy Cohen's proprietary OVI indicator, and a robust trading plan, when combined, will deliver success.
In The Insider Edge, Guy Cohen reveals:How you can profit from options without having to trade or even understand them! Why the smart money often gravitates to the options markets. How options transactions can often reveal the direction of the stock price. How you can trade using information typically reserved for the pros. A trading plan the delivers maximum safety and windfall profits. How to use his proprietary OVI indicator online for free, so you can start to follow the insiders.
The author emphasises that The Insider Edge is for anyone who wants to trade stocks. No options knowledge is required to benefit from this book. His method involves observing what the smart options traders are doing, and then following them. This is what gives you The Insider Edge.