A detailed guide to successfully trading stock and commodity options
After numerous years as an options market-maker in the trenches of the New York Mercantile Exchange, few analysts know how to make money trading options like author Lee Lowell. Now, in the Second Edition of Get Rich with Options, Lowell returns to show you exactly what works and what doesn't.
Filled with in-depth insight and expert advice, this reliable resource provides you with the knowledge and strategies needed to achieve optimal results within the options market. It quickly covers the basics before moving on to the four options trading strategies that have helped Lowell profit in this arena time and again: buying deep-in-the-money call options, selling naked put options, selling option credit spreads, and selling covered calls.
- Breaks down four of the best options trading strategies currently available
- Explains how to set up a home-based business with the best options trading software, tools, and Web sites
- Contains detailed discussions of how options can be used as a hedging or speculating instrument
With this book as your guide, you'll quickly see options in a whole new light and learn how to become part of a small group of investors who consistently win.
Preface to the Second Edition ix
Part One: The option basics 1
CHAPTER 1: It’s All about the Calls and Puts 3
CHAPTER 2: How Options are Priced 15
CHAPTER 3: Option Volatility 27
CHAPTER 4: Stocks versus Options 47
CHAPTER 5: Option Selling Is Your Key to Success 57
Part Two: The strategies 69
CHAPTER 6: Buy All the Stock You Want for Half the Price 71
CHAPTER 7: Getting Paid to Buy Your Favorite Stock 93
CHAPTER 8: Option Credit Spreads: The All-Star Strategy 121
CHAPTER 9: A Day in the Life of the Market Maker 173
CHAPTER 10: Put Your Stocks to Work - Sell Covered Calls 185
CHAPTER 11: A Bonus Strategy: Ratio Option Spreads 205
Part Three: Getting Ready to Trade 227
CHAPTER 12: Tools of the Trade 229
CHAPTER 13: Brokers and Commissions 235