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- Herausgeber: Neil Sharp
- Kategorie: Fachliteratur
- Sprache: Englisch
Do you want to live a life of freedom, flexibility, and endless amounts of income? If so then keep reading…
Do you have problems getting started with options trading? Not knowing the best techniques for multiplying your cashflow? Predicting big price moves? Or Not knowing the meaning of Greek variables? If you do, within this book
many of the top leaders in the field have shared their knowledge on hot overcome these problems and more, most of which
have 10+ years worth of experience.
In The Advanced options trading guide, you will discover:
- A simple trick you can do for predicting big price moves!
- The best strategies for multiplying your cashflow!
- The one method you should follow for learning “The Greeks” faster!
- Why understanding the fundamentals of put and call options will set you up for success!
- Understanding why some people will fail to make money with options trading!
- And much, much more.
The proven methods and pieces of knowledge are so easy to follow. Even if you’ve never heard of options trading before, you will still be able to get to a high level of success.
So, if you don’t just want to transform your bank account but instead revolutionize your life, then click “ Buy Now” in the top right corner NOW!
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Veröffentlichungsjahr: 2020
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Neil Sharp
The Advanced Options Trading Guide
Table of contents
Introduction
Chapter 1: What are Options?
Chapter 2: Different Types of Options
Chapter 3: Technical Options Terminology
Chapter 4: Options Trading vs. Stock Trading
Chapter 5: Options Volatility and Greek Variables
Chapter 6: Getting Started with Options Trading
Chapter 7: Tips and Strategies for Options Trading
Conclusion
Introduction
Thank you for purchasing The Advanced Options Trading Guide. The Best Complete Guide for Earning Income with Options Trading, Learn Secret Investment Strategies for Investing in Stocks, Futures, ETF, Options, and Binaries. I am sure that this book will live up to your expectations.
If you have purchased this book, it is because you are interested in learning more about options trading and how this type of trading can help you make a profit as a result of your investment activities.
As you will see in the following pages, this book contains a wealth of information that you will not find readily available anywhere else. In fact, many of the concepts found in this book are not easily found in a single volume. Often, you would have to consult numerous sources in order to find all of this information in a single source.
You will also find that options trading is an extensive topic. But fear not, we will go step by step in such a way that grasping these concepts will not be as hard as you think. If you happen to have prior knowledge with some understanding of this topic, then I am sure that you will find a clear understanding of the options trading markets. If you are already familiar with this topic, then I hope that you will find new information that will help you expand your current knowledge and gain a fresh perspective on this matter.
Options trading differs somewhat from regular equities trading. With equities, you were dealing with publicly traded companies. Of course, the options market also deals with publicly traded companies but the difference lies in that options are considered part of the derivatives market. As such, the derivatives market is far larger and far more complicated than the traditional equities market.
Consequently, it will certainly help you to learn more about how the derivatives market works, especially since there are many opportunities available for investors in derivatives. So don't be intimidated by the vast amount of information available out there with reference to the derivatives market. In reading this book, I hope that you get a clear idea of how the derivatives market, through options trading, can open up newer opportunities for investors such as yourself.
For most professional investors, options are a common tool that is used to help protect themselves from volatile markets and sudden swings in the prices of equities and commodities. This is why it is important to also understand the nature of equities and commodities.
Since options are considered derivatives, you are not exactly trading an equity or commodity, that is, a specific security that is attached to the contract which you are negotiating. That's being said, it is vital to have a clear perspective on the dynamics of each market.
Each of the chapters in this book is dedicated to illustrating how each of these markets interacts in such a way that a broader structure is revealed as part of the global structure of financial markets.
The good thing about all of this is that highly technical knowledge is not required. All you need is some time and dedication in order for you to gain a considerable grasp of the concepts discussed throughout this book.
So buckle up because we are going to drill down into the concepts which make up the options trading markets and thereby broader financial markets, not just in the United States, but also around the world. Bear in mind the teas are global markets we are talking about. So keeping an open mind and the global perspective are fundamental tools in understanding how the dynamics of the options trading market works.
Chapter 1: What are Options?
In this chapter, we are going to drill down on the basics of options and how these types of investments work in the overall scheme of financial markets. It must be pointed out that options are not investment vehicles in themselves.
What does that mean?
For example, when you purchase a stock, you're purchasing a piece of a company. That is, you are purchasing partial ownership of a publicly traded company. And while stock is not a tangible asset which you can hold in your hands, it is proof that you own a hard asset, in this case, a company.
So, when dealing with options, you are dealing with a number of transactions which have an underlying asset supporting them. However, this type of investment fits the description and definition of a derivative. This is why the options trading market tends to be a bit more complex than the traditional equities market.
But before we dig any deeper into options themselves, let's get some important definitions out of the way.
First of all, this book does not deal in securities trading. As such, we are not talking about stocks and bonds. When you talk about securities in general, you are talking about ownership of real assets which you can then convert into cash in the regular markets.
For instance, if you purchase stock in a company, you can then turn around and sell that stock to another investor. Whether you make or lose money is dependent on market forces. Consequently, you must be clear on what price you are purchasing a security and at what price you are going to be selling it. Nevertheless, stocks are highly liquid assets because you can trade them virtually anytime you want, and you will always find a buyer for them.
Unless you have purchased stock into a company that has completely tanked, you will always find investors who are willing to take on stock even in a down market. This is what I mean when I say that stocks are highly liquid assets.
Another type of highly liquid assets contained under the securities umbrella is bonds. Bonds are also highly liquid assets that can be sold immediately when you need cash. Of course, if you have purchased bonds of a nation which is in default, then such bonds will essentially be worthless. So long as you invest in high-quality bonds, you will always have an asset which you can convert into cash at any moment.
With this definition, I hope to illustrate what a security is. Please feel free to check out any of the other books in this series which deal on the topic of equities markets and stock trading. I am sure these books will provide you with a wealth of information that you can put to use right away as you find your bearings as an investor.
One other thing before we move on to defining what an option is, trading in options is a speculative activity that yields good results but does not come without significant risk. That is why I would encourage you to do your homework at all times so that you are sure that the investments you are making will provide you with the opportunity to protect yourself against such risks.
Defining “Options”
An option, simply put, is a financial contract that locks in the right to buy or sell but not an obligation.
What this implies, is that an option is exactly as what its name suggests: it is a choice, not an obligation. As such, you as an investor can choose to lock in a given price for the contract, but you are not obligated to carry out with the transaction.
As a result, you have the option of backing out of the contract if, for some reason, you choose to do so. For instance, it could be that you have a cash flow problem and you run out of money. So, you can’t go through with the contract unless you find the money to make the deal happen.
Granted, most transactions in the derivatives market don’t necessarily involve cash, but you do need to have some type of liquidity in order to make the deal go through. In other cases, circumstances change, and you may no longer become interested in that particular asset which you took the option out on.
Now, the reason why we say that options are derivatives is because you are not actually trading the asset itself, but rather, you are entering a contract which is based on an underlying asset. Since an option is a contract in which you have the right to buy or sell—that is one contract, the actual purchase or sale is a separate contract.
I hope you can see that when an option goes through, it is actually two, separate contracts that kick in. The reason for this is because you could actually make the deal without enacting the options contract.
Allow me to illustrate.
