9781118399309

A revised new edition of the easy-to-read, illustrated guide to the complex world of options investing Investing in options is potentially very lucrative, but many shy away from it because of its complexity and the perception of high risk. In non-technical terms, this helpfully illustrated guide demystifies the options markets, distinguishes the imagined risks from the real ones, and arms investors with the facts they need to make informed, profitable decisions. Carefully weaving examples, charts, and key points into the text, the book gives readers the skills to master the complex world of options, and also covers all the fundamental jargon and concepts. Updated to include commentary on the current market and the growing importance of options as an investment vehicle Another new addition to the successful "Getting Started In" series by Michael C. Thomsett The perfect introductory guide to options for investors at any level of experience For anyone who wants to invest in options but needs a straightforward and easy-to-read guide to the subject in order to do so, Getting Started in Options is a must-read.

MICHAEL C. THOMSETT (www.MichaelThomsett.com) has written more than 70 books on investing, real estate, business, and management. He is author of several Wiley books, including the eight editions of the bestselling Getting Started in Options, as well as Getting Started in Fundamental Analysis, Getting Started in Real Estate Investing, and Getting Started in Swing Trading. He also has written numerous other stock investing and trading books, including Winning with Stocks (Amacom Books), Stock Profits (FT Press), and Mastering Fundamental Analysis and Mastering Technical Analysis (Dearborn Press). The author contributes regularly to many websites, including Minyanville Media, Benzinga and Seeking Alpha; and writes articles for the AAII Journal and NAIC’s Better Investing. He also writes a weekly investing and trading blog (www.ftpress.com/blogs/); and he teaches five classes at the New York Institute of Finance (NYIF). Thomsett has been writing professionally since 1978 and full time since 1985. He lives near Nashville, Tennessee.

Acknowledgments

Element Key

Introduction

Chapter 1: Calls and Puts: Defining the Field of Play

The Call Option

The Put Option

Option Valuation

Chapter 2: Opening and Tracking: How It All Works

A Note on the Expiration Cycle

Opening and Closing Option Trades

Calculating the Rate of Return for Sellers

Chapter 3: Buying Calls: Maximizing the Rosy View

Understanding the Limited Life of the Call

Judging the Call

Call Buying Strategies

Defining Profit Zones

Chapter 4: Buying Puts: The Positive Side of Pessimism

The Limited Life of the Put

Judging the Put

Put Buying Strategies

Defining Profit Zones

Chapter 5: Selling Calls: Conservative and Profitable

Selling Uncovered Calls

Selling Covered Calls

Calculating Rate of Return

Chapter 6: Selling Puts: The Overlooked Strategy

Analyzing Stock Values

Evaluating Risks

Put Strategies

Chapter 7: Closing Positions: Cover, Close, Exercise or Roll

Defining Possible Outcomes of Closing Options

Exercising the Option

Timing the Decision

Avoiding Exercise

Chapter 8: Paper Trading: A Test Run of the Theory

The Case for Paper Trading

Two Sites Worth Checking

Chapter 9: Calculating the Return: A Complex Aspect to Options

Finding a Realistic Method

Annualizing Models and Guidelines

An Overview of Basic Calculation for Calls

Anticipating the Likely Return

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Getting Started in Options

Getting Started in Options

1118399307

Summary

Author Biography

Table of Contents

Supplemental Materials

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