The complete guide to option selling : how selling options can lead to stellar returns in bull and bear markets

The growing popularity of selling options is undeniable, yet it remains one of the least understood concepts in the trading world. This clear and engaging guide helps you enter the market with the confidence you need and generate profits with a consistency that may surprise you. Now in its second edition, The Complete Guide to Option Selling is the only book that explores selling options exclusively. Since its original publication in 2004, much has changed in the world of options, and the authors have provided key updates to help you take advantage of these changes. You’ll find all the information you’ll need to start writing options profitably in equities, stock indexes, and commodities and maximize your returns, minimize your risk, and even manage “black swan” events. With more than 38 years combined experience in options trading, the authors explain: Basic mechanics of how professionals sell time premium The misunderstood subject of margins on short options Myths about option writing— and why they still circulate Key factors to consider when building an optionselling portfolio How to control risk—the right way Effective, time-tested strategies for selling premium Common mistakes beginners make and how to avoid them Option selling provides a high probability of success that is difficult, if not impossible, toachieve in any other investment. The Complete Guide to Option Selling illustrates how to take full advantage of this unique approach and make it a profitable, high-yield component of your overall portfolio. Don’t listen to the popular myth that option selling is only for professionals. The secret is out, and individual investors can now run with it. Read The Complete Guide to Option Selling and learn how you can level the playing field with the big guys. It’s a lot easier than you may think. Increasing numbers of investors are looking beyond unwarranted fears of "unlimited risk" to see option selling for what it really is-a commonsense, risk-controlled approach that dramatically improves an investor's chances of profiting while providing better-than-average returns in every type of market.The Complete Guide to Option Selling explains how to make option writing on futures a profitable part of your trading and investing program. Unlike most options books seemingly written for quants and mathematicians, it explains in plain English who wins and who loses in the options game, and then provides step-by-step strategies for staying on the winning side.Authors James Cordier and Michael Gross are active futures brokers with decades of combined experience in the futures trading industry. In The Complete Guide to Option Selling they cut years from your learning curve with hands-on details including: Why selling options on futures is markedly similar to selling options on equities, with far better profit potential, How to select the right market, strike price, and month to improve the likelihood that options you write will expire worthless, Strategies for controlling risk by selling far out-of-the-money options, with low deltas, diversified across different markets, All about SPAN margin-the key to consistently high returns, Fundamentals of select futures markets, from soybeans and corn to cattle, energies, precious metals, and others, How to utilize reliable seasonal tendencies, along with examples of the most consistently tradable patterns, Six mistakes new option sellers commonly make, and how to learn from and preempt them in your own account, Methods for trading profitably without spending hours each week studying the markets.Professional investors have relied on the proven performance and stability of option selling for decades. They know that, while no investment strategy can be both lucrative and risk-free, option selling provides a risk/reward ratio that is difficult if not impossible to come by in any other investment.The Complete Guide to Option Selling explains the why, what, where, and how of writing options. Written for the individual investor, it reveals techniques you can use to seamlessly integrate the knowledgeable writing of options into your own investment program. Descripción del editor: "Investing today is more complicated and unpredictablethan ever before. The strategy of buy-and-hold has been replaced by buy-and-hope. Trying to grow your assets means worrying about how the next geopolitical crisis or government announcement will affect your portfolio. In an age of stunted economics and uncertain interest rates, attempting to guess market direction can seem futile.The good news is, you don't have to anymore. There isa better way to invest. It's time to borrow a page fromthe pros and radically change your entire philosophy to building a solid, high-yielding portfolio.The Complete Guide to Option Selling takes you through the process step by step. Updated to help you drawsteady, high profits in an age of skittish markets, thisclassic text covers the ins and outs of:The Fundamentals of Option SellingWhy writing options works so well, what kind of investor writes options, and how futures options could be the missing piece to your puzzleOption-Selling Strategy and Risk ManagementChoosing the right options to sell, the most powerfulspread strategies, the mechanics of selling, and protecting yourself from downside risk like a proMarket Analysis and Writing OptionsHow to find the best markets to take premium, the secret of seasonal trends, and tips on building your premium ladderYou don't need a fancy Greek calculator to succeed in writing options. All you need is a little knowledge, a lot of common sense, and The Complete Guide to Option Selli" (Amazon) Contents......Page 4 Introduction......Page 6 Part I: Selling Options—Why and How It Works......Page 10 Chapter 1 Why Sell Options......Page 12 Chapter 2 A Crash Course on Futures......Page 30 Chapter 3 Buying Options versus Selling Options......Page 46 Chapter 4 Span Margin: The Key to High Returns......Page 62 Part II: Option Selling Srategy and Risk Control......Page 74 Chapter 5 Strike Price and Time Selection......Page 76 Chapter 6 Use and Abuse of Spreads......Page 100 Chapter 7 Recommended Spread Strategies......Page 122 Chapter 8 Liquidity, Order Placement, Assignment, and Limit Moves......Page 138 Chapter 9 Risk Control in Option Selling......Page 150 Part III: Market Analysis and Option Selling......Page 170 Chapter 10 Fundamentals versus Technicals......Page 172 Chapter 11 Key Fundamentals of Select Markets......Page 186 Chapter 12 Seasonal Analysis and Option Selling......Page 202 Chapter 13 The Best Markets for Seasonal Option Sales......Page 220 Chapter 14 Volatility Simplified......Page 244 Chapter 15 Structuring Your Option Selling Portfolio......Page 256 Part IV: Getting Started......Page 268 Chapter 16 Mistakes New Option Sellers Make......Page 270 Chapter 17 Finding a Good Broker or Money Manager......Page 282 Chapter 18 Option Selling as an Investment......Page 294 Chapter 19 Pulling It All Together......Page 306 References......Page 314 F......Page 316 O......Page 317 R......Page 318 W......Page 319 Contents 4 Introduction 6 Part I: Selling Options—Why and How It Works 10 Chapter 1 Why Sell Options 12 Chapter 2 A Crash Course on Futures 30 Chapter 3 Buying Options versus Selling Options 46 Chapter 4 Span Margin: The Key to High Returns 62 Part II: Option Selling Srategy and Risk Control 74 Chapter 5 Strike Price and Time Selection 76 Chapter 6 Use and Abuse of Spreads 100 Chapter 7 Recommended Spread Strategies 122 Chapter 8 Liquidity, Order Placement, Assignment, and Limit Moves 138 Chapter 9 Risk Control in Option Selling 150 Part III: Market Analysis and Option Selling 170 Chapter 10 Fundamentals versus Technicals 172 Chapter 11 Key Fundamentals of Select Markets 186 Chapter 12 Seasonal Analysis and Option Selling 202 Chapter 13 The Best Markets for Seasonal Option Sales 220 Chapter 14 Volatility Simplified 244 Chapter 15 Structuring Your Option Selling Portfolio 256 Part IV: Getting Started 268 Chapter 16 Mistakes New Option Sellers Make 270 Chapter 17 Finding a Good Broker or Money Manager 282 Chapter 18 Option Selling as an Investment 294 Chapter 19 Pulling It All Together 306 References 314 Index 316 A 316 B 316 C 316 D 316 E 316 F 316 G 317 H 317 I 317 J 317 K 317 L 317 M 317 N 317 O 317 P 318 Q 318 R 318 S 319 T 319 U 319 V 319 W 319 Selling Options: why and how it works Why sell options A crash course on futures Buying options versus selling options Span margin: the key to high returns Option selling strategy and risk control Strike price and time selection Use and abuse of spreads Recommended spread strategies Liquidity, order placement assignment, and limit moves Risk control in option selling Market analysis and option selling Fundamentals versus technicals Key fundamentals of select markets Seasonal analysis and option selling The best markets for seasonal option sales Volatility simplified Structuring your option selling portfolio Getting started Mistakes new option sellers make Finding a good broker or money manager Option selling as an investment Pulling it all together. A revised and expanded edition of our successful title The Complete Guide to Option Selling, expanded to cover black swan events and volatility trading.