Originally published almost a decade ago, LeRoy Gross′s authoritative, yet highly accessible book has been the only resource available for conservative investors looking to further their investment goals with options. Now, with a new Introduction by the bestselling author Larry McMillan, The Conservative Investor′s Guide to Trading Options has been updated to help market practitioners of the present garner the same rewards reaped by investors of the past.
Using the clear, balanced approach he used with his clients during a long career in the securities industry, Gross explores the various options strategies most frequently employed with individual stocks, examines the risk factors associated with each, and offers a unique perspective on how to use options as a hedging tool. From buy stock/write call to sell stock/buy call, the strategies covered are designed to help investors be better able to increase stock income, reduce stock risk, and seek stock profits. In addition to recommended systems, Gross also points out those that conservative investors should avoid, including naked call writing, calendar spread, and call option butterfly spread.
With clear, easy–to–understand explanations, here′s where you′ll find complete details on:
∗ Reading and understanding option tables
∗ Entering option orders
∗ Negotiating commission discounts
∗ Understanding the language of options trading with a complete glossary
Filled with practical examples and no–nonsense information, this is essential reading for all those who want to expand their portfolios using conservative option strategies.
A classic guide to safe and profitable options strategies for conservative investors–now updated
"Derivatives have become an important tool for an ever–increasing number of investors. The broad definition of ′derivatives′ includes options, futures, and many more exotic instruments that are conjured up by the leading investment banks. For most stock–oriented investors, though, the term predominantly refers to stock options. The virtual explosion in trading of stock options attests to their importance. Still, there are many who do not yet understand what stock options are or how they can be of benefit to an investor. This book is for those investors."–from the Foreword by Larry McMillan
Reading and Understanding Option Tables.
What You Should Know About Entering Option Orders.
Commission Discounts Increase Your Return on Investment.
The Buy Stock–Write Call Strategy.
The Sell Stock–Buy Call Strategy.
Buying Puts on Owned Stock to Preserve Profit and Limit Risk.
Straddle Writing for the Conservative Investor.
Selling Puts Backed by 100% Cash Reserves.
Hire the Experts if You Are a Financial "Wreckspert!"
Guide Rules for Buy Stock–Write Call Strategy.
Leverage Profit Potential by Writing Calls Secured by Deep–in–the–Money Calls.
Defensive Strategies for Short Call Option Positions Secured by Stock.
Buying Calls Can Make Sense Even for Conservative Investors.
Strategies for Investors with Long Profitable Option Positions.
How to Figure Your Profits or Losses and the Tax Consequences.
STRATEGIES CONSERVATIVE INVESTORS SHOULD AVOID.
The Strategy of Writing Radio Calls.
The Strategy of Writing Radio Puts.
The Naked Call Writing Strategy.
The Calendar Spread Strategy.
The Call Option Butterfly Spread Strategy.
Married Puts: An Expensive Wedding between Stock and Option.
Speculative Purchases of Put and Call Options.
The Diagonal Call Option Spread.
The Bullish Perpendicular Call Option Spread.
Five Questionable Strategies that Could Increase Your Blood Pressure and Your Losses.