Conservative options trading : hedging strategies, cash cows, and loss recovery /

Thomsett, Michael C.,

Conservative options trading : hedging strategies, cash cows, and loss recovery / Michael C. Thomsett. - First edition. - New York, New York (222 East 46th Street, New York, NY 10017) : Business Expert Press, (c)2020. - 1 online resource (xiii, 181 pages) : illustrations - Finance and financial management collection, .

Chapter 1 Setting the ground rules -- Chapter 2. Option basics -- Chapter 3. Options in context -- Chapter 4. Chart-based analysis -- Chapter 5. Managing profits and losses -- Chapter 6. Options as cash generators -- Chapter 7. The 1-2-3 iron butterfly -- Chapter 8. The dividend collar -- Chapter 9. Alternatives to stock purchase -- Chapter 10. Option strategies in down markets -- Chapter 11. Combination conservative techniques -- Chapter 12. Risk evaluation techniques -- Chapter 13. Stock selection and the option contract.

The world of options is considered high risk by many. At its original options trading in the modern era began in the early 1970s when the first listed calls were offered on a short list of companies; a few years later, put trading was added. Since this time, options trading has become available on most companies on the large public exchanges. However, the high-risk reputation of options has persisted through the years, even as dozens of new and often conservative strategies have been introduced. Today, the best use of options is not to speculate on price movement, but to hedge market risk in equity portfolios. Many strategies can combine hedging with income, establishing advantageous circumstances for risk-averse traders. It is possible to apply several strategies to reduce risk and, in some instances, to eliminate market risk completely. This book examines the many ways this can be accomplished, based on options for three highly rated companies. These are qualified as a first step by exceptionally attractive fundamental attributes and trends: Higher than average dividend yield with dividend increases over at least 10 years; a range of moderate price/earnings ratios each year; growing revenue, earnings, and net return; and level or declining long-term debt as a percentage of total capitalization.




Mode of access: World Wide Web.
System requirements: Adobe Acrobat reader.

9781951527136


Options (Finance)
Stock options.
Hedging (Finance)

Bollinger bands. Chart analysis. Conservative. Portfolio. Volatility. Downside risk. Exercise. Extrinsic value. Intrinsic value. Time value. Implied volatility. Spread. Straddle. Insurance put. Covered call. LEAPS options. Leverage. Momentum. Contingent purchase. Contingent sale. Speculation. Strike price. Expiration. Underlying security. Tax rules. Rescue strategies. Risk. Long. Short.


Electronic books.

HG6024 / .C667 2020