Options as a Strategic Investment PDF

INTRODUCTION

Each chapter in this book presents information in a logically sequential fashion. Many chapters build on the information presented in the preceding chapters.

One should therefore be able to proceed from beginning to end without constantly referring to the glossary or index.

However, the reader who is using the text as a reference – perhaps scanning one of the later chapters – many find that terms are being encountered that have been defined in an earlier chapter.

In this case, the extensive glossary at the back of the book should prove useful. The index may provide aid as well, since some subjects are described, in varying levels of complexity, in more than one place in the book.

For example, call buying is discussed initially in Chapter 3; and mathematical applications, as they apply to call purchases, are described in Chapter 28. The latter chapters address more complex topics than do the early chapters.

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Options as a Strategic Investment PDF : When the listed options market originated in April 1973, a new world of investment strategies was opened to the investing public.

The standardization of option terms and the formation of a liquid secondary market created new investment vehicles that, adapted properly, can enhance almost every investment philosophy, from the conservative to the speculative.

This book is about those options strategies -which ones work in which situations and why they work. Some of these strategies are traditionally considered to be complex, but with the proper knowledge of their underlying principles, most investors can understand them.

While this book contains all the basic definitions concerning options, little time or space is spent on the most elementary definitions.

For example, the reader should be familiar with what a call option is, what the CBOE is, and how to find and read-option quotes in a newspaper.

In essence, everything is contained here for the novice to build on, but the bulk of the discussion is above the beginner level. The reader should also be somewhat familiar with technical analysis, understanding at least the terms support and resistance.

Certain strategies can be and have been, the topic of whole books – call buying, for example. While some of the strategies discussed in this book receive a more thorough treatment than others, this is by no means a book about only one or two strategies.

Current literature on stock options generally does not treat covered call writing in a great deal of detail. But because it is one of the most widely used options strategies by the investing public, call writing is the subject of one of the most in-depth discussions presented here.

The material presented herein on call and put buying is not particularly lengthy, although much of it is of an advanced nature especially the parts regarding buying volatility, and should be useful even to sophisticated traders.

In discussing each strategy, particular emphasis is placed on showing why one would want to implement the strategy in the first place and on demonstrative are made for using the computer as a tool in a follow-up action, including an example printout of advanced follow-up analysis.

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