Private investors can use traded options to speculate on price movements in key shares, or to ‘insure’ their holdings against unexpected price movements. They are not just a speculative medium. They can also be used as part of a long-term investment strategy, or as a flexible tool for the management of risk and reward.
Traded options are more volatile than ordinary shares. Those skilled and disciplined enough to enter the options arena are in a game where the risks are high, but the rewards for getting it right are highly lucrative. Not for the foolhardy and frivolous, you can lose money as easily as making it. Options are tricky beasts to handle, their behaviour very different to that of shares. Different rules need to be followed and a disciplined strategy adopted in order to tame them.
Traded Options provides a framework for making money in this fast-growing area. It explains how traded options work and illustrates techniques and strategies that can be used, supported by clear worked examples.
The book includes dedicated sections on-
choosing a broker
trading rules and objectives
writing options
index options
share price charts
using computer models for valuing options
options online
relevant web links.
Written by best-selling author Peter Temple, Traded Options provides a comprehensive understanding of this most fast–moving and fascinating sector of the stock market, enabling you to beat the system and reap the reward.