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    Options Trading: Simplified – Beginner’s Guide to Make Money Trading Options in 7 Days or Less! – Learn the Fundamentals and Profitable Strategies of Options Trading
    Options Trading: Simplified – Beginner’s Guide to Make Money Trading Options in 7 Days or Less! – Learn the Fundamentals and Profitable Strategies of Options Trading
    Options Trading: Simplified – Beginner’s Guide to Make Money Trading Options in 7 Days or Less! – Learn the Fundamentals and Profitable Strategies of Options Trading
    Ebook175 pages2 hours

    Options Trading: Simplified – Beginner’s Guide to Make Money Trading Options in 7 Days or Less! – Learn the Fundamentals and Profitable Strategies of Options Trading

    By Mark Lowe

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    About this ebook

    Do you want to start making money trading options, but not sure where to start?

    Have you tried to learn but found it all too difficult and confusing? Do you want to learn using simplified teaching methods in an easy step-by-step format? If so, this is the book for you!

    This book addresses the key concepts and principles beneath option trading and leads you from being a raw beginner to becoming an educated options trader. This book requires no previous knowledge or experience in options or financial trading.

    Inside, you'll find:

    • What are Options? Why we trade in them and how to profit from them.
    • The basic theory behind option trading and how it works
    • How to make money trading options in markets moving up, down or sideways
    • How to trade like a professional
    • A five point strategy for making consistent income in the most difficult markets
    • And much more…

    If your previous attempts to learn using books, blogs and online videos have left you confused don't despair, for this book can help you.

    Using the simplified trading best practices and profound tips and advice from the professionals, this book will help you understand how to trade profitably and safely using low risk but high profit strategies. Reading this book will provide you with a strategic philosophy that is geared to providing consistent income over a long, productive trading career.

    Featuring all sorts of theoretical and practical gems - Options Trading Simplified: Beginner's Guide to Make Money Trading Options in 7 Days or Less! - explains why it is important to have a risk limiting strategy that protects your capital while optimizing your profit potential. This safety first, step by step approach is ideal for beginners and intermediary level traders who want to make money in options trading without losing their nest egg!

    So scroll up and click "Buy Now" and get started on your 7-day journey to making money trading options!

    LanguageEnglish
    PublisherRyan James
    Release dateJan 1, 2020
    ISBN9781393870708

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    • 2/5
      Very basic. No meat. Only describes what options are but nothing about how to trade options at all. Not worth your time.

    Book preview

    Options Trading - Mark Lowe

    Options Trading Simplified

    Beginner’s Guide to Make Money Trading Options in 7 Days or Less!

    Learn the Fundamentals and Profitable Strategies of Options Trading

    © Copyright 2019 - All rights reserved.

    The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher.

    Under no circumstances will any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book. Either directly or indirectly.

    Legal Notice:

    This book is copyright protected. This book is only for personal use. You cannot amend, distribute, sell, use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

    Disclaimer Notice:

    Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, and reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book.

    By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, which are incurred as a result of the use of information contained within this document, including, but not limited to, — errors, omissions, or inaccuracies.

    Table of contents

    Chapter 1 – Getting Started in Trading Options

    Introducing Options

    What Are Options?

    Options in Common Law

    Why Options Exist

    Options as Insurance

    Trading Options Basics

    What is Options Trading?

    Comparing Options to other Securities

    Trading in Options

    Trading Options for Profit

    Chapter 2 - Understanding Options

    An Option’s Components

    Know the underlying asset

    Risk Management

    Option Contract Essentials

    Understanding the Risk Components

    Placing a Value on Call Options

    Placing a Value on Put Options

    Understanding Time and Time Decay

    Paper Trading

    The Advantages of Option Trading

    Chapter 3 – Putting Options to Work

    Options Put to good use

    Hedging your Bets

    Trading in a Bear Market

    Using Options in Challenging Markets

    Making Money in Flat Markets

    Applying options to sector investing

    A Deeper Dive into Options

    Understanding Option Contracts

    Setting your Strategy

    Option Pricing

    Contract Types: the Calls and Puts

    Understanding Leverage

    Options for Speculation

    Marking to Market and Margin

    Chapter 4–Getting to grips with the Jargon

    Option Contract Variables

    Listed Options

    Long and Short Puts and Calls

    Going long or going short

    Trading Long on a Call

    Trading short on a Call

    Trading long on a Put

    Trading short on a Put

    Basic Put and Call Matrix

    Writers & Buyers

    Setting the Strike Price

    Expiration Date

    American and European Options

    Chapter 5 - Understanding and Placing Orders

    Reading the Quotes

    Contract Naming Conventions

    Basics of Orders

    Option Transactions

    Opening and Closing a Position

    Selling an option you don’t own

    Understanding option orders

    Knowing basic option order rules

    Basic Order Types

    Market orders

    Limit orders

    Stop orders

    Stop-limit orders

    Specialist Types of Order

    Advanced Order Types

    Contingent orders

    Trailing stop orders

    One cancels other (OCO) orders

    One triggers other (OTO) orders

    Chapter 6 – Being in the Money

    The concept of moneyness

    The Moneyness of an Option

    Open Interest

    Expiration and Exercise

    Exercising your Rights

    Delivery and Settlement

    Extrinsic and Intrinsic Value

    Weighing Option Costs and Benefits

    Risk of Leverage

    Understand the role of Volatility

    Using Greeks for Options Trading

    The Greeks in Brief

    Chapter 7 – Trading like a Pro

    Treating Option Trading as a Business

    Controlling your emotions

    Managing Your Costs

    Optimizing Order Execution

    Trading rules you should know

    Finding a Broker and a Platform

    Understanding Transaction Fees and Slippage

    Develop a Small Account Trading Strategy

    Deploying Risk-Defined Techniques

    Credit Spread Strategy

    Iron Condor

    Covered Calls

    Married Put Strategy

    Protective Collar Strategy

    Long Straddle Strategy

    Long Strangle Strategy

    Putting it all together

    Thank you

    Chapter 1 – Getting Started in Trading Options

    An old Chinese proverb says that every journey starts with a single step. And here you are starting out on day 1 of your quest to learn all about trading options and making money in 7 days or less! Options are complex there is no getting around that and there is a lot to learn in such a short time and it's difficult to know where to start. But as this book is aimed at the beginner – someone new to options and financial trading then starting with the basics is as good a place as any. So today on day 1, we will introduce you to the basic concepts and theory of Options, what they are, how they work for us and why we trade them.

    By taking this journey one step at a time we will build your knowledge, chapter by chapter, with each subsequent chapter building on the concepts learned previously. By approaching the journey one step at a time you will learn and become comfortable with some of the complex theory, concepts and principles of options trading but importantly also learn the practical skills you will need to thrive in the Options market.

    In This Chapter

    You will learn:

    About why people are trading Options

    What are options?

    How did options come about?

    Comparing Options to other Financial Instruments

    Learn some of the key definitions

    Learn how options operate in theory and in practice

    How options are ultimately valued

    Introducing Options

    In financial trading, an option is a contract between two parties that gives one party – the prospective buyer - the choice between committing to a trade on a specific asset at an agreed price and at an agreed date and alternatively backing out of the trade. Therefore we can consider an Option to be a financial instrument that allows you the buyer to speculate on the market with low or at least identified risk. For example, as a beginner you may wish to test the water and so buy a stock option – this is a contract based on the underlying shares of a company - with a view to buying the underlying stock at a set price at a later predetermined date. The beauty of the Option is that should your assessment of the market be correct you can exercise your right to buy the shares or take your profit.

    However, should your assessment be wrong and you have misjudged the market trend then you can simply walk away with no obligation to buy the stock.  For example, a call option would let you select an Option today that is set at a fixed price which will be available to you at a future date. This means that you can assess the current price of the stock and then choose an option with an attractive future price, which you feel will maximize your profits. But, importantly, you are under no future obligation to buy the underlying stock – you can walk away for any reason.

    Options are certainly not just tools for learning trading as institutional traders will use them regularly for what is known as Hedging where they buy options – importantly not the underlying stock - as insurance against a turn in their market position. This gives Options several unique characteristics which makes them valuable tools for insurance against risk.

    Moreover, trading in Options is not just about hedging and insuring against risk it is also a very powerful way to make money if you know what you are doing. Unfortunately many rush in without fully grasping the technical details of Options and subsequently make large losses. This is simply because options are at first complex to grasp and even though they may well be based upon stocks and shares the mechanics of trading is very different.

    This common perception of complexity and higher risk makes a lot of beginners and intermediary traders avoid trading in options. But it doesn’t have to be that way because trading options is actually a good place for beginners and intermediary traders to start out because if done correctly it can limit losses and risk while at the same time increasing the potential for profits. However, we must not underestimate the difference in the levels of knowledge and skills that are required to successfully trade in options.

    What Are Options?

    An option is defined as a contract between two parties, which gives the holder (buyer) the right, but not the obligation, to buy or sell the underlying asset at an agreed fixed price at an agreed time in the future – or in some cases at any time before the contract’s expiry date.

    Options as we saw earlier were designed to allow institutional investors to mitigate risk and act as tools for ensuring against market unpredictability. Thus the Options contract was originally used to buy insurance against potentially catastrophic price movements that would have led to huge losses. But their inherent characteristics soon made Options attractive to traders as speculation tools in their own right. To see how Option became fashionable with traders we

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