Skip to Content
Introduction to Trading and Investing with Options (Collection)
book

Introduction to Trading and Investing with Options (Collection)

by Guy Cohen, W. Edward Olmstead, Michael C. Thomsett
January 2011
Beginner
800 pages
23h 56m
English
Pearson
Content preview from Introduction to Trading and Investing with Options (Collection)

9. Puts in Contrary Price Run-ups: Safe Counter-Plays During Bear Markets

If you have studied options, you already know that premium levels vary widely. The degree of volatility in a particular stock directly affects option premiums as a reflection of market risk. It is a common mistake to focus on the higher price potential in strategies such as covered calls and other shorts, but the higher premium also indicates higher volatility and market risk.

Making assumptions about price direction of a stock is a challenging task by itself. When you add the second requirement, estimating how volatile the stock is going to be, the options challenge becomes even greater. In a review of premium values, the two best-known types of value are predictable ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

The Option Trader’s Hedge Fund: A Business Framework for Trading Equity and Index Options

The Option Trader’s Hedge Fund: A Business Framework for Trading Equity and Index Options

Dennis A. Chen, Mark Sebastian

Publisher Resources

ISBN: 9780132657914