The Options Trading Body of Knowledge: The Definitive Source for Information About the Options Industry

Authoritative, single-source guide to the entire field of options trading, by the fields #1 best-selling author! By Michael C. Thomsett, author of the global best-seller Getting Started in Options. Illuminates virtually every strategy, technique, and type of options trading, including options on futures, indices, ETFs, and mutual funds. Helps readers with all levels of options experience to choose the right strategies and understand their true risks. For millions of traders and investors, options have become an indispensable tool, both for increasing profits and controlling risk. Now best-selling author Michael C. Thomsett has brought together all of todays most important options strategies, techniques, and concepts in one authoritative, easy-to-use desk reference. Using this readable, practical book, options investors can consistently select the right strategies, clarify their risks, and structure trades that accomplish their goals. Thomsett illuminates option strategies ranging from high risk to conservative, and thoroughly discusses options based on futures, indices, and mutual funds, not just stocks. He systematically explains covered calls, spreads, straddles, combinations, and synthetic positions, revealing how trades are structured, how to assess risk, and when each strategy is most likely to be appropriate. For most strategies, Thomsett also presents detailed tables and illustrations identifying profit zones, loss zones, and breakeven points. In addition to its coverage of specific strategies, he thoroughly explains how option premiums develop based on each element of value; walks through calculating returns on options trading; discusses how federal taxation works in the options market; shows how stocks are selected for options trading; and provides a detailed glossary and additional resources for traders at all levels of experience.