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Basic Options Trading E-Book 57 comments
I focus on options because, despite the confusion some investors feel in relation to them, they can be ideal trading and investing vehicles for small investors. Not only does going long an option contract require a fraction of the capital it takes to go long 100 shares of the option's underlying stock, but proper use of options can generate considerable income for any portfolio, even conservative ones. It's a misnomer that options trading/investing equates to gambling. Most investors can use basic options strategies just as safely and effectively, if not more so, as they do with stock trades.
Based on the number of emails and comments I receive from Seeking Alpha readers, large numbers of investors want to learn more about how to use options in their portfolios. This demand got me thinking about the best way to present basic options information to a mass audience, outside of and in addition to my Seeking Alpha articles.
The result of my thinking - I intend to publish an eBook about basic options investing. I call it options investing because the actionable portion of the book will focus on relatively long-term options trades. I will cover the very basics of options trading and help take beginners through the process of demystifying options and carrying out the easiest and simplest strategies.
I write this Instablog not only to let Seeking Alpha readers know that this is coming, but also to gauge interest for this type of information, concisely packed in one easy-to-use guide. I have not settled on what to charge for the eBook, but the cost will be nominal.
I would appreciate your feedback regarding your interest in the comments section of this Instablog.
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This post has 57 comments:
I will buy. You name the price. Period.
Todd
Just putting on finishing touches over the holiday and should publish in the 1st week of January.
Please keep the thoughts and comments coming.
I think there is a big market for the information.
Best of luck with it and I look forward to seeing it.
Barb
I feel like what I have to offer is of value and that I can put people in a position where they can simply take it and go from there, but not take on a whole bunch of unnecessary risk.
Ultimately, others will be the judge of that.
The word you want there is 'clamoring'.
It would distinctly be useful to see a good options primer for many of our colleagues here at SA. There appear to be many misunderstandings and misapprehensions about options on this board, and any effort to eliminate or reduce these would be very welcome indeed.
Speaking as one who has written on options and option strategies for decades, if I can be of any service to you in your project, please do not hesitate to contact me.
Season's best to you,
Ducky
I appreciate the input. This is really great.
;^)
"synchronicity,"
I don't think there is such a word (just drop the ity), but I am impressed none the less.
Only joshing you. Don't get serious on me.
I am a big fan of you on this site and love the articles you put out. I am a small time investor and have never owned options. I would love to learn more in options trading and look forward to purchasing your e-book. Good luck with your writing.
Chris
Coincidentally, you'll be getting a shout-out in my next article.
Great analysis of RCI.
There will be nothing advanced in the book. It will solely focus on long calls and puts and covered calls. I might end up including some mentions of selling puts, but only to make points in relation to other strategies.
Otherwise, I will get as deep and as "real-life" as I can on those three early stage strategies, which, for me at least, I don't see the need to go beyond.
I think what will make this unique is how I word it - very conversational and practical - and my suggestions for playing things relatively conservative. Plus, I have some opinions about options v. stocks that I do not see floated all that often.
I'll buy the book the day you publish it.
No, unfortunately, you cannot preorder it. I will be putting the finishing touches on it over the holiday break and intend to have it up, via Amazon's program, in the first week of January 2012.
Because it will not be a major text in terms of length and will focus only on the very basic options strategies, the price will be modest and more than fair.
Again, thanks so much.
Would that be something you could touch on?
One, basically what I stated. I don't do it and I don't plan to so it's not an area I think I can offer much on. The basic stuff- I feel like I have it covered pretty well and can offer some level of valuable insight/food for thought.
Two, part of the point for writing this introductory eBook is to help people avoid what I think is a major pitfall -- going too far, too fast and getting into advanced stuff you probably should just leave alone. I don't think basic options should be a gateway drug, so to speak, you should enjoy the high of the basics and stick with it. I don't mean to make a global statement there, but I think that's the case for lots of investors, including relatively small ones such as myself.
I am waiting :-)
I've commented on how beneficial I find your commentary and have been trying to get my head around options trading/investing for some time with no success.
Charles
I have decided to discuss cash-secured puts. I am adding that and putting the finishing touches on everything else. I expect to submit it to Amazon next week. I assume it will be available shortly thereafter.
Again, this is going to be very basic level stuff. I think that's where a major need exists, but, more so, I think it's one I can legitimately address.
I sold my first put yesterday, just couldn't wait. It's a stock I feel very comfortable owning, namely SI. I have quite a few in different account right now, and sold covered calls on all of them. They go ex divi on 1/20 - it's a yearly dividend of 4.04 ( close to that) and so I decided to sell a contract of Feb 12 - $85 - my thinking is that they will probably not go that low, and I made a little bit of money. But even if they do, I will be happy to own them, as this company isn't going anywhere, and I am confident that sometime soon the whole Euro thing will be resolved.
I had an interesting thing happen involving selling covered calls for LYB recently, and they announced a special dividend, which caused the strike price to be lowered by the amount of divi = $4.50 per share! I was livid, but learned from it, to always check the literature when a special dividend is announced.
ok, I'm rambling, just wanted to add - HAPPY NEW YEAR!!
Thanks for asking.
Happy new year.
It will be humorous when you see Amazon reviews stating things like "How can you write a book on options? They are far too risky and made the financial markets collapse. Shame! You are the 1%!"
Please let me know when it is published and I will help spread the word!
Aiming for early this week. Lots of it will be up to Amazon and their turnaround time.
-BG
It's pretty dry and straightforward, very basic stuff. Densely packed with some good nuggets, I think, that I don't see discussed quite the same way elsewhere.
It's submitted and in Amazon's hands now. Should be live any hour now. I will keep you posted.
I am really grateful and somewhat surprised by the great response. Thank you.
If you do not have a Kindle, you can download a program at Amazon that permits viewing on your computer.
I hope people are happy with the product.
Olmstead, a math professor at Northwestern University, starts out with a basic Options 101 course, going into the merits of puts and calls. He catalogues the exchanges where they are listed, and the vast number of products that can be traded, including stocks, bonds, commodities, currencies, and precious metals. He goes into the mundane, but important details on the administration side of things, such as settlements. For the more technically inclined, he launches into options theory pricing, and goes into the origins and utility of the Black-Scholes equation. We learn about the arcane world of what traders call “the Greeks”, the deltas, thetas, and vegas of individual positions. He then launches into basic option strategies, like call and put spreads, ratios, straddles, strangles, collars, and condors.
- The Mad Hedge Fund Trader
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StockTalks
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Lots of msgs asking where I went. I am on Twitter (http://bit.ly/PUMHKp). And, starting this week, posting on SA under Paid2Trade.
Sep 9, 2012
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From midnight tonight, both of my eBooks are free on $AMZN - the basic options one and one about Skid Row, LA http://amzn.to/JSiBIC
May 25, 2012
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Where do I sign a petition for this!? http://yhoo.it/KDXbsT
May 24, 2012
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