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Options trading: Complete Beginner’s Guide to the Best Trading Strategies and Tactics for Investing in Stock, Binary, Futures and ETF Options. Build a Remarkable Passive Income in a Matter of Weeks

Options trading: Complete Beginner’s Guide to the Best Trading Strategies and Tactics for Investing in Stock, Binary, Futures and ETF Options. Build a Remarkable Passive Income in a Matter of Weeks

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Options trading: Complete Beginner’s Guide to the Best Trading Strategies and Tactics for Investing in Stock, Binary, Futures and ETF Options. Build a Remarkable Passive Income in a Matter of Weeks

valutazioni:
5/5 (5 valutazioni)
Lunghezza:
149 pagine
1 ora
Editore:
Pubblicato:
Sep 17, 2019
ISBN:
9781393747611
Formato:
Libro

Descrizione

Are you looking for a great way to generate monthly passive income with just a few hours of commitment? Or are you already an investor who would benefit from the huge value that options could add to your portfolio?

Whether you are a professional or a beginner who Is looking for the smartest ways to start making some extra money, Options Trading is something you should definitely consider.

Options, notwithstanding that they have been around for over 40years now, was initially keeping investors at bay due to the impression of being too demanding and difficult to comprehend and were considered 'risky' and 'dangerous'. However these were incorrectly associated with options by the media and other well-known people within the market and financial district. Yet in this day and age options are gradually grasping people's interests.

In reality Options, if sensibly put into use, could provide investors with different correlating advantages. As it happens, an investor can get an option position interchangeable to a stock position, with the difference of having it at huge cost savings so you can considerably leverage your resources. Because they need less financial commitment, options in various situations are less risky then owning equities. This results due theor insusceptibility to the potentially chaotic effects of gap openings.

So how does one take advantage of that and the other benefits involved in this approach?

In this book you will find all you need to know about options to get a kick start in the right pathavoiding all the common mistakes newbies and investors usually make. David Reese, one of the most successful and experienced traders and consultants in the Us market, will reveal the most profitable strategies and approaches from A to Z which he has been using till today to make astonishing profits through these amazing instruments.

By the end of this book you will discover:


  • What options are and practically how does they work

  • Main concepts and terminology you need to know to get start

  • What are the most powerful signal that you need to recognize for making your best move

  • Best profitable strategies that you should use in different scenarios

  • Most powerful Tools, Tips, Advice, that only an experienced professionals could know

  • How to approach psychologically those investment towards success

  • And much more…


As you've probably already heard, Options still have a bad reputation for being risky investments in which only expert traders can understand. However with this easy step-by-step approach that the author wisely used to bring to life this amazing book, will be a piece of cake for anyone to deeply understand how those instruments work and start using them in a matter of weeks, no matter what kind of education work and age you have. As a matter of fact, Trading isn't something that you can learn in a classroom and doesn't require any specific degrees!

So, stop fiddling about and wasting time, take action now and start following your dreams with one simple click of the BUY button, now!

Editore:
Pubblicato:
Sep 17, 2019
ISBN:
9781393747611
Formato:
Libro

Informazioni sull'autore


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Options trading - David Reese

Conclusion

Introduction

Congratulations on downloading this book, and thank you for doing so.

The following chapters will discuss everything that you need to learn about options trading. It takes you from the basic level, through the main options trading strategies all the way to advanced strategies and great tips to earn you big profits.

You will learn through this book all about options, the different terms used, and all the best trading strategies. You will also learn about money management tips, mistakes to avoid, and more importantly—all about trading psychology.

If you learn how to trade options successfully, then you stand to earn a bigger income compared to investing directly in stocks. This is because options have a multiplier effect. You should read this book till the end and learn how to make money trading options.

There are plenty of books on this subject on the market—thanks again for choosing this one! Every effort was made to ensure it is fully equipped with as much useful information as possible. Please enjoy!

Chapter 1: What Are Options?

An Introduction to Options

Options can be defined as a type of security that is traded at the markets. Simply put, it is something—some sort of a contract—enabling the buyer to perform a purchase of an underlying security such as stocks. However, the buyer is never under any obligation to buy the security.

An option contract is a type of financial derivative because it derives its value from an underlying security. The security could be a commodity, a stock, or any other asset that qualifies.

A derivative is a financial security whose value is derived from an underlying asset. The financial security is usually a contract between two parties and depends upon the said assets. The asset fluctuations determine the derivative’s value.

Summary

We can, therefore, say that an option is a choice, (or opportunity) that you have an as an investor at the securities exchange. You can buy or sell an options contract at the options exchange.

There are two kinds of options you can invest in. First, you can buy what is referred to as call option, which provides you rights to buy the underlying security but without an obligation to do so. Meanwhile, you can also buy the second type, which is referred to as put option, which provides you with the rights to sell a corresponding equity. If the buyer decides to purchase said asset, then you will be obligated to sell it.

Real-Life Options Examples

There are plenty of real-life examples of how options apply in our lives. It is possible that you have seen them in action or maybe even used options in your business or life. For instance, if you have ever bought insurance such as home insurance or health and car insurance, you have applied principles similar to those that apply to options trading.

Car insurance

Take auto insurance for instance. If you buy a brand new car, or just a really good vehicle, you will not want to risk driving it without insurance coverage. Doing so is risky because anything could happen and you risk suffering serious losses. This is the main reason why people take insurance.

Now, when you take out insurance for your automobile or any other insurance, you pay a monthly or annual fee for the cover provided by the insurance company. The benefit you stand to get from the cover is much greater than what you pay for it.

Even if you do not get into an accident, the price you will have paid is in an actual sense a tiny amount yet you had the car all this time and drove it with peace of mind. This amount that you paid for the insurance can be referred to as premium.

The same principle applies to options.

This principle applies in much the same manner when it comes to options. However, instead of investing in a car, your money will go to your favorite stocks. Let’s say you put your money on stock ABC which is trading at $20 a share and you think this price will rise to $30 in the coming months.

The problem here is that you do not have sufficient funds to purchase the share. You can instead purchase an options contract which you can afford. For instance, you can buy an options contract for 100 shares at only $1.00 so only $1.00 of your money would get tied up instead of $2,000 which would be required to buy the actual shares.

Options Basics

At the very basic level, there are two options from which you can choose from. These are referred to as put options and call options. You need to note that all option strategies, regardless of how complex, use one of these two types. Therefore, the call option and put option constitute the building blocks of all other options strategies.

Call options

A call option is something that allows you to buy an underlying security. It simply means that you have the right to call a security away from its owner. However, you have no obligation to do so.

As an investor, you should look to purchase call options only when you are optimistic about the prices. You should also buy call options when you are positive about the market’s direction in general.

Example:

A call option can be viewed as a down payment for a future purpose. Let us assume that you wish to purchase a home in the future. You notice an upcoming development and become interested in buying property but only under certain terms and conditions.

For instance, you may only want to buy property in this new development if they put up certain amenities such as schools and parks. However, your interest will end should there be plans to put up a garbage dump or a processing plant.

To achieve your aim, you will have to set up an option so that you have the option to buy the property or not. You can buy a call option from the property developer any time in the next three years for a price of $450,000. This option will cost you some money. This cost is referred to as the premium.

The premium you pay for an option is non-refundable. It can be seen as the price you pay to earn the right extended to you as an option holder. In our case, the premium is $25,000. This amount goes to the property developer who agrees to sell the option. Now, in three years’ time, the property will sell for about $800,000. However, your buying price will be locked in at $400,000 and that is the price that you will pay for your home.

Put Options

A put option is one that gives you the right to sell stock. This option enables selling a security for a certain price. As a put buyer, you will be bearish on the stock price and the markets in general. This means you expect the markets to fall together with the share price and you have a strategy to profit from this price downturn.

Example:

Let us look at an example of how put options operate in real life. You can look at it as insurance coverage. Let us say you own a house so you get a homeowner’s cover. This policy is designed to protect your home from damage. You will pay an amount each month or perhaps annually towards the cover. This amount is the premium.

Now, instead of your home, we can imagine a stock investment. If you own stocks or shares, then you can purchase a put option to protect your investment. Let’s imagine that you own 1000 shares of company ABC which are valued at $20 per share. However, you believe that the share price will drop in the coming months by $5 and you wish to protect yourself from any inherent losses.

You will then purchase put options at $1.50 per 100 shares which will cost you $15. The put option will protect you in case the price falls drastically. Suppose in 3 months, the share price of ABC stock falls to $15. You will have the ability to sell your shares for some pre-agreed value—usually the one they had during the creation stage. At the time the price was $20 so you will be able to save over $5 times 1000 = $5,000 in losses. This is very similar to an insurance policy which restores you back to your initial position after

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  • (5/5)
    Very detailed guide to getting started in options trading! How to buy and what to buy, understanding the strike price and top reasons to trade. What the terms mean, how to be successful in this business. Differences between options trading, day trading and swing trading and details on each one and how to understand what to do!
  • (5/5)
    Options Trading has its own jargon. Knowing this will help you with your trading. There are many good reasons to trade options, understanding each will help choose which type of trading is best for you. The more you know the more successful you will be.
  • (5/5)
    The reason for this is because of the many different trading strategies there are. That is why I was thankful when I found this book that had all three of these books in one. It really explained all three strategies well and I was able to go back and forth between the different ones.
  • (5/5)
    This book is a complete guide that will teach you the basics of options trading, day trading, and swing trading. This is an awesome way to grow your financial profile and earn more money.
  • (5/5)
    This was a great read and would highly recommend it to anyone starting out or an investor who is looking to build upon there education