Options as a Strategic Investment
Review Options as a Strategic Investment
by LAWRENCE G. MCMILLAN
Description
Options and non-equity options markets are of great advantage since they render plenty of strategic opportunities. These opportunities are crucial for investors and traders in order to perform an appropriate intervention and approach for the overall management of an investment. As strategic investment is deemed an ideal venture, it is highly suggested that an individual develops a set of skills and strategies to ace this market.
Together with proper investment psychology and strategies, time-tested tools are also necessary. Using Options as a Strategic Investment, readers will be introduced to the latest developments and updated instruments meant to boost and maximize the profile. More so, these tools are conducive enough to mitigate and decrease the margin of risks regardless of the persisting market movement.
It provides instructions and how-tos for the following topic:
- Short and long strategies ideal for Long Term Anticipation Securities
- Rigorous analysis of neutral trading, its functions, and methodologies on how to improve readers’ portfolio
- A rundown and general view of futures and futures option
About the Author
LAWRENCE G. MCMILLAN is a seasoned trader and the founding father of McMillan Analysis Corporation. He published Options as a Strategic Investment, which later became a best-selling book heavily recognized as a crucial part of finance literature. He regularly graces segments on CNBC and Bloomberg TV.
Table of Contents
PART I- BASIC PROPERTIES OF STOCK OPTIONS
- Definitions
PART II- CALL OPTION STRATEGIES
- Covered Call Writing
- Call Buying
- Other Call Buying Strategies
- Naked Call Writing
- Ratio Call Writing
- Bull Spreads
- Bear Spreads Using Call Options
- Calendar Spreads
- The Butterfly Spread
- Ratio Call Spreads
- Combining Calendar and Ratio Spreads
- Reverse Spreads
- Diagonalizing a Spread
PART III- PUT OPTION STRATEGIES
- Put Option Basics
- Put Option Buying
- Put Buying in Conjunction with Common Stock Ownership
- Buying Puts in Conjunction with Call Purchases
- The Sale of a Put
- The Sale of a Straddle
- Synthetic Stock Positions Created by Puts and Calls
- Basic Put Spreads
- Spreads Combining Calls and Puts
- Ratio Spreads Using Puts
- LEAPS
PART IV- ADDITIONAL CONSIDERATIONS
- Buying Options and Treasury Bills
- Arbitrage
- Mathematical Applications
PART V- INDEX OPTIONS AND FUTURES
- Introduction to Index Option Products and Futures
- Stock Index Hedging Strategies
- Index Spreading
- Structured Products
- Mathematical Considerations for Index Products
- Futures and Futures Options
- Futures Option Strategies for Futures Spreads
PART VI- MEASURING AND TRADING VOLATILITY
- The Basics of Volatility Trading
- How Volatility Affects Popular Strategies
- The Distribution of Stock Prices
- Volatility Trading Techniques
- Advanced Concpets
- Taxes
- The Best Strategy?
POSTSCRIPT
APPENDIX A- STRATEGY SUMMARY
APPENDIX B- EQUIVALENT POSITIONS
APPENDIX C- FORMULAE
APPENDIX D-GRAPHS
APPENDIX E- QUALIFIED COVERED CALLS
