Options Made Easy: Your Guide to Profitable Trading, Second Edition

Table of Contents

1. Copyright
2. Acknowledgments
3. About the Author
4. Executive Summary
5. Preface
6. Introduction to Options
   1. Criteria for Successful Investing
   2. Risk Profile Charts
   3. The Definition of an Option
   4. The Valuation of Options
   5. Intrinsic and Time Value for Calls
   6. Intrinsic and Time Value for Puts
   7. The Seven Factors that Influence an Option’s Premium
   8. Risk Profile Charts for Call Options
   9. Risk Profile Charts for Put Options
   10. Memory Tips for Long and Short Calls and Puts
   11. Basic Risk Profiles Summary
   12. Chapter 1 Major Learning Points
7. Into the Marketplace
   1. How to Read Option Prices
   2. Option Contracts
   3. Option Exchanges
   4. Option Expiration Dates
   5. Exercise Prices
   6. Option Ticker Symbols
   7. Margin
   8. Placing Your Trade Order
   9. Types of Order in the Market
   10. Time Limits with Trade Orders
   11. Always Have a STOP in Mind Whenever You Make a Trade
   12. Trading Tips
   13. Leverage and Gearing
   14. A Brief Introduction to Delta (Hedge Ratio)
   15. Chapter 2 Major Learning Points
8. The Basics of Fundamental Analysis
   1. Past History and Management
   2. News and Results
   3. Sentiment and Expectations
   4. The Wider Economy
   5. Economic Indicators to Watch (USA Only)
   6. Bonds
   7. Supply and Demand
   8. Corporate Fundamentals
   9. Key Financial Terms
   10. Key Financial Figures and Ratios
   11. Search Criteria and Screening Filters for Fundamentals
   12. Common Sense and Being Alert
   13. Chapter 3 Major Learning Points
9. The Basics of Technical Analysis
   1. Three Ways to View Price Patterns
   2. Basic Chart Patterns
   3. Support and Resistance
   4. Double and Triple Tops and Bottoms
   5. Head and Shoulders
   6. Reverse Head and Shoulders
   7. Consolidations—Pennants, Triangles, and Wedges
   8. Fibonacci Retracements
   9. Elliott Wave
   10. Gann Levels
   11. Gaps
   12. Volume
   13. Technical Analysis Indicators
   14. Moving Averages
   15. Moving Average Convergence Divergence (MACD)
   16. Stochastics
   17. The Relative Strength Index (RSI)
   18. Different Time Frames
   19. More Technical Analysis Terminology
   20. Chapter 4 Major Learning Points
10. Two Popular Strategies and How to Improve Them
    1. The Synthetic Call
    2. The Covered Call (Covered Write or Buy Write)
    3. The Collar (or Protected Buy-Write)
    4. Chapter 5 Major Learning Points
11. An Introduction to the Greeks
    1. The Greeks
    2. Delta Δ
    3. Gamma Γ
    4. Theta Θ
    5. Vega K (also known as Kappa or Lambda)
    6. Rho P
    7. Chapter 6 Major Learning Points
12. Bull Call Spreads and Bull Put Spreads
    1. Bull Call Spreads
    2. Bull Put Spreads
    3. Advantages of Spreads—A Summary
    4. Chapter 7 Major Learning Points
13. Two Basic Volatility Strategies
    1. Straddles
    2. Strangles
    3. Chapter 8 Major Learning Points
14. Two Basic Sideways Strategies
    1. Butterflies
    2. Condors
    3. Comparison Between the Butterfly and the Condor
    4. Chapter 9 Major Learning Points
15. Trading and Investing Psychology
    1. Myths and Realities
    2. Tips and Good Habits
    3. Your Optimal Mindset
    4. Money Management and Rule Making
    5. Chapter 10 Major Learning Points
16. Putting It All Together—A Call to Action
    1. Step 1—Choose Your Favored Strategies (Keep It Simple!)
    2. Step 2—Set Your Filters
    3. Step 3—Designing Your Trading Plan for Each Entry and Exit
    4. Chapter 11 Major Learning Points
17. Stock Futures and Options Strategies (Bonus Chapter)
    1. Futures Pricing
    2. Stock Futures and Options Strategies
18. Strategy Table
19. Glossary
20. References and Recommended Reading
21. Financial Times Press
22. Financial Times Prentice Hall Books