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- Herausgeber: WS
- Kategorie: Fachliteratur
- Serie: Investing Essentials - From Stock Market Basics to Real Estate and Passive Income
- Sprache: Englisch
If You’ve Been Looking for a Way to Develop a Winning Options Trading Strategy, Keep Reading…
Are you looking to enter into the profitable world of options trading?
Or, maybe you’re an existing options trader who’s hit a slump and wants to get out of it?
You’ve just found the perfect Options Trading book that will equip you with winning strategies, precise technical analysis techniques, and the expert insights used by top traders to beat the odds and achieve consistent profits!
Written by a seasoned options trader and an expert analyst that wants to share his treasure trove of knowledge, you’ll never need another resource to help you maximize your profits again.
Inside this book, you will discover:
- The fundamentals of Options: Build a solid foundation by understanding the basics of options trading, including terminology, types of options, and key concepts such as strike price, expiration date, and option pricing models.
- Winning strategies all the top traders use: Learn proven strategies that consistently generate profits in the options market. Understand the advantages and risks associated with each strategy and discover how to adapt them to different market conditions.
- How to conduct precise technical analysis: Learn how to analyze price patterns, interpret indicators, and apply charting techniques specific to options trading. Leverage technical analysis to increase your chances of success.
- The art of risk management in options trading: Get effective techniques for position sizing, setting stop-loss orders, and managing risk-reward ratios. Gain insights into trade adjustment strategies to mitigate losses and turn losing trades into winners.
- And more!
Whether you are a seasoned options trader or just starting out, this book is packed with actionable strategies, precise technical analysis techniques, and the wisdom of top traders so that you can achieve the same amount of success as they have.
Scroll up, Get Your Copy Now, and Let Your Options Trading Journey Begin!
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Seitenzahl: 73
Veröffentlichungsjahr: 2023
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Options Trading
Take Your Trading to the Next Level With Winning Strategies and Precise Technical Analysis Used by Top Traders to Beat the Odds and Achieve Consistent Profits in the Options Market.
Samuel Feron
Copyright © 2023 by Samuel Feron
All rights reserved.
It is not legal to reproduce, duplicate, or transmit any part of this document in either electronic means or in printed format. Recording of this publication is strictly prohibited and any storage of this document is not allowed unless with written permission from the publisher except for the use of brief quotations in a book review.
This book is a work of fiction. Any resemblance to persons, living or dead, or places, events, or locations is purely coincidental.
Contents
Introduction
Are you a new investor who just got started? Want to master the art of options trading but lack any prior knowledge?
If so, then you should read this book.
You must venture beyond basic transactions and limited stock and exchange-traded fund (ETF) purchases if you wish to succeed in the stock market. If you know what you're getting into and how to practice options trading successfully, options trading can provide a path to significant stock market success.
Options are financial derivatives that offer the holder the right, but not the obligations, to purchase or sell an underlying asset at a particular price, known as the striking price, on or before a given date, known as the expiration date. At this time, the option is valid.
Options are flexible financial tools that can be utilized for income generation, hedging, and speculating. Investors often employ them to reduce risk and increase returns.
This book is intended to introduce options thoroughly and how they work, covering the many types of options, how to buy and sell them, and how to utilize them in different strategies.
This book will help you learn the basics of options and how to utilize them effectively in your financial portfolio, whether a novice or a seasoned investor.
You will get knowledge about several trading strategies to use as well as some potential dangers. When you finish reading this book, you'll have a solid foundational understanding of options trading and whether it fits you.
Introduction To Options Trading
You're not the only one if you've recently joined the options trading bandwagon. In fact, with 7.47 billion contracts exchanged in 2020, the popularity of trading in options, or contracts that let you wager on which way you believe a stock price is headed, reached a record high. The Options Clearing Corporation reports a 52.4% rise from the previous year.
Options trading is rapidly expanding as both experienced and novice investors embrace it. These two groups are starting to understand the freedom options offer: investors can lock in a stock price without acquiring it.
Trading options can greatly increase your income, reduce your risk, and protect yourself from market volatility. Options can complement stocks in your portfolio for these reasons. Investors have more options when they trade both than when they trade equities alone. Options can function almost like an insurance policy. For instance, buying specific options might help offset any possible losses on your shares if the value of a company you hold declines.
Options may allow you to change your strategy without selling your stock, lower your breakeven point, and even establish a purchase price for a stock below its current market value.
Despite its widespread appeal, options trading is not that simple, and getting started requires a lot of forethought. We break down below what active investors need to understand before trying options.
What Are Options?
An option is a contract that grants you the right to purchase or sell a financial product for a predetermined amount of time at the agreed-upon price.
Equities, indexes, and ETFs are just a few financial products with options available. Options are referred to as "derivatives" because their value is "derived" from the underlying asset.
You trade ownership in a corporation when you trade stocks. In contrast, the possibility or obligation to buy or sell the underlying stock is traded when options contracts are bought or sold. The mere possession of an option does not grant the holder ownership of the underlying securities or any dividend rights.
Why Trade Options?
Options have been available for more than 40 years, but they have only begun to receive the attention they merit. Many investors have ignored options because they are too complex and difficult to understand. Because neither they nor their brokers received adequate training on utilizing options, many more people have had initial negative experiences with them. Like any strong tool, options can be misused to cause serious issues.
Finally, the financial media and certain well-known personalities in the market have mistakenly associated the word "risky" or "dangerous" with options. The individual investor should consider both sides of the argument before deciding on the worth of options.
Option options may offer an investor four main benefits, in no particular order. With benefits like these, it is understandable that individuals who have been utilizing options for some time would be perplexed as to why they are not more well-liked. Let's examine each of these benefits individually.
Cost-Efficiency
Options have a lot of leverage. As a result, an investor can acquire an option position comparable to a stock position while saving a ton of money. For instance, an investor would need to shell out $16,000 to buy 200 shares of an 80-dollar stock. The total cost, however, would only be $4,000 if the investor bought two $20 calls, each representing 100 shares (2 contracts x 100 shares/contract x $20 market price). After that, the investor would have an extra $12,000.
It is not nearly that easy. The investor must choose the best call to acquire to duplicate the stock position. However, this tactic, usually referred to as stock replenishment, is feasible and economical.
Lower Risk, When Used Properly
There are instances where purchasing options are riskier than holding stocks, but there are other circumstances where using options can help lower risk. It all relies on how you employ them. Due to the lower financial commitment required, options might be less risky for investors than shares and are more resistant to the potentially disastrous impacts of gap openings.
Options are safer than stocks since they are the most reliable type of hedging. A stop-loss order is commonly issued to safeguard the position when an investor buys equities. The stop order is intended to halt losses below a certain price that the investor has specified. These orders have difficulty because of the way they are written. A stop order is implemented when the stock moves at or below the limit specified in the order.
Greater Chance Of Returns
You don't need a calculator to understand that if you spend less money while earning about the same profit, your % return will be larger. Options often offer to investors when they are paid off.
More Strategic Options
Options also provide extra investing possibilities, which is its final significant benefit. Options are an incredibly adaptable tool. Options can be used in a variety of ways to replicate various positions. These positions are referred to as synthetics.
