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The world of options is considered high-risk by many. At its original options treading 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.
This book explains and demonstrates the concept of momentum in chart analysis, which is of great interest to technical analysts.It includes complete explanations of overbought and oversold, where momentum fits in the broader science of technical analysis, and the importance of moving average crossover. Five major momentum oscillators are explained in depth: relative strength index, MACD, rate of change, stochastics, and Bollinger Bands. Finally, the book provides trading guidance based on momentum, involving coordination of oscillators with other indicators, reversal, and continuation signals.Momentum powerfully identifies the strength and speed of price movement. Through the use of index calculations, momentum is effective when used as a confirming indicator for other signals found in price, volume, or moving averages. Often overlooked by traders focused solely on price reversals or continuation signals, momentum provides a context to price behavior and to the price trend, and can vastly improves the timing of both entry and exit of trades.
An up-to-date guide to the complex world of equities Getting Started in Stock Investing and Trading walks investors and traders through the essential information they need to know before they decide what kind of participant they want to be in equities.
Stock Market Math shows you how to calculate return, leverage, risk, fundamental and technical analysis problems, price, volume, momentum and moving averages, including over 125 formulas and Excel programs for each, enabling readers to simply plug formulas into a spread sheet. This book is the definitive reference for all investors and traders. It introduces the many formulas and legends every investor needs, and explains their application through examples and narrative discussions providing the Excel spreadsheet programs for each. Readers can find instant answers to every calculation required to pick the best trades for your portfolio, quantify risk, evaluate leverage, and utilize the best technical indicators. Michael C. Thomsett is a market expert, author, speaker and coach. His many books include Mathematics of Options, Real Estate Investor's Pocket Calculator, and A Technical Approach to Trend Analysis. In Stock Market Math, the author advances the science of risk management and stock evaluation with more than 50 endnotes, 50 figures and tables, and a practical but thoughtful exploration of how investors and traders may best quantify their portfolio decisions.
This book explains and demonstrates candlestick signals, including both the appearance of each but in context on an actual stock chart. It further takes the reader through the rationale of reversal and continuation signals and demonstrates the cruci
This book is written for the experienced portfolio manager and professional options traders. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.
An advanced strategic approach using options to reduce market risks while augmenting dividend income, this title moves beyond the basics of stocks and options. It shows how the three major segments (stocks, dividends, and options) are drawn together into a single and effective strategy to maximize income while eliminating market risk.
From early legislation like the Fugitive Slave Law of 1793 to Reconstruction and the rise of the Ku Klux Klan, this book explores the background of some of America's most controversial moments. Spanning the first American century, it offers a detailed chronology of slavery and racism in early US politics and society.
A comprehensive primer on generating income by renting real estate, Getting Started in Rental Income examines the two major ways of entering the rental income market: the traditional purchase of rental properties and buying and selling fixer-upper properties in need of cosmetic repairs.
A must-read guide to real estate investing during turbulent times In this updated edition, author Michael Thomsett begins by cautioning readers that real estate is not always alluring. Markets go through cycles, and the down phase of the cycle from 2006 onward has been one of the longest and scariest in history.
Commercial real estate professionals must understand how to analyze the real estate market and assess the financial feasibility of a project. Many people go with their instincts or past experience when reviewing the financials, but they fail to utilize the useful data and analytical tools now available in this field.
If youa ve picked up this book, you probably recognize the value of fundamental analysis, but arena t sure you can master it. With Getting Started in Fundamental Analysis as your guide, youa ll quickly become familiar with the key concepts and learn how to put them into action in the real world.
The basics behind the Six Sigma quality control technique Six Sigma is designed to achieve excellence in customer service and measure deviation from the ideal. It provides a process for placing value on the intangible nature of quality control. The underlying theories of Six Sigma are highly technical and complex.
Options: a key component of today's most powerful swing trading strategies. Options, those high-risk, short-lived, and speculative instruments, can be used as a valuable alternative in swing trading strategies designed to move in and out of stock positions based on very short-term price movement. Options' flexibility allows you to use either calls or puts, to go long or short, vary the number of contracts, or combine different approaches based on market conditions.
How options can help you recover losses in stock investments you still want to keep. In volatile markets, inevitable paper losses tie up capital and prevent you from moving ahead. So what do you do? Do you just wait and hope the market price rebounds? Do you cut your losses and move your cash to more promising stocks? Or are there other choices? If you still consider the company a worthwhile investment, you can use options as part of a recovery strategy.
Contrary to popular opinion, there are low-risk short option strategies--and here's how to make them work for you. Is there such a thing as a low-risk short option strategy? Many traders and investors do not think so, but in fact there is one way to put together a short spread that will not break the bank. A combined covered call and uncovered put accomplish this, assuming that a few basic precautions are followed. First among these is....
Discover Chaikin Money Flow: the technical indicator that's strong, reliable, and nearly ideal. Every technician and speculator is on the lookout for a magic sign that gives them the jump on everyone else: a simple, easily interpreted, and reliable red flag anticipating price turns easily and consistently. It doesn't exist. But there is an indicator that adds a lot to your timing and comes close to the ideal in terms of strength and reliability....
How to uncover the crucial, high-value gaps that basic technical analysis won't find. Gaps are significant signals. However, you might be missing some extremely important gaps, those that are not visible without deeper analysis of the price pattern. Obvious gaps show up with clear spaces in between trading ranges from one day to the next. These are easy to spot. Other, more subtle, gaps provide equally important technical signals, notably foreshadowing reversals....
This is the eBook version of the printed book. Understand the demand for gold, silver, and other key metals--so you can invest in metals far more successfully. Market watchers closely follow precious metals futures, whether purchased through the commodities market or ETFs. Precious metals directly affect many aspects of the market, including currency valuation, and their value responds immediately to news. Metals, however, aren't merely speculative tools: They're widely used in manufacturing. This article examines demand for six key metals: gold, silver, copper, aluminum, platinum, and palladium....
An up-to-date primer on the energy markets: everything you must know before you trade. There is no singular energy market. There are many different versions and subsets of energy: Any trader who wants to invest has many choices. The best one depends on acceptable risk levels, perceptions of the markets, and the amount of available capital. Before deciding how to enter this market, you should be aware of....
Discover four simple ways to uncover exceptional value in equities with strong fundamentals. Short-term price movement in the market is always chaotic, and, as confusing as this is, it can become your greatest advantage. First, pick companies and stocks based on sound fundamental analysis. Second, time your purchase based on value, not fads. If you believe in the fundamentals, but you don't know how to narrow down the list of what to watch, consider the following four suggestions....
Why covered calls are so popular, how they limit your risks, and how to use them successfully. Most traders who consider options have heard of the popular strategy, the covered call. This is a very safe options strategy because it produces a profit better than just owning stock in most possible outcomes. A "e;covered"e; call exists when you own 100 shares of the underlying stock, and sell a call....
How to use short puts to earn consistent profits with surprisingly limited risk. You may know all about covered and uncovered call writing and the degrees of risk involved. But the uncovered put belongs in your arsenal as well. The short put offers great profit potential with limited risk. However, short puts are overlooked by many traders. Puts cannot be covered like short calls, but short put risks are lower because a stock's price cannot fall indefinitely....
This is the eBook version of the printed book. How to uncover emerging market reversals while there's still time to profit from them. Can you spot reversals and act on them before they have become obvious? Technicians pay constant attention to a stock's trading range; however, some very visible reversal signals are easily overlooked. Also, you must have a trend to spot a reversal: Without one, there is nothing to be reversed. Some general assumptions may cloud a trader's judgment. For example....
Math for Managers is a practical summary of formulas every manager needs. The book is organized into logical chapters, and each formula introduced includes an example and the Excel program needed to make the process of calculation simple. It adds a practical side to the challenge of calculating the sometimes complex formulas of compound interest, rates of return, breakeven after tax liability, balance sheet and income ratios, depreciation, reports and budgets, proration, statistics, and more. Additional appendices are provided to explain incredible math shortcuts. This book will benefit managers and executives at any level within an organization, as well as academic instructors and business students. Michael C. Thomsett is a market expert, author, speaker, and coach. His many books include Stock Market Math, Candlestick Charting, The Mathematics of Options, and A Technical Approach to Trend Analysis.
An "e;installment strategy"e; in its most basic form, combines two options, one long-term position and one short-term. This strategy is designed as a conservative, no-cost method to either eliminate risk for future trading when stock is owned; or to fix the price for a future purchase of the underlying security.Portfolio managers and experienced individual traders face a chronic problem - risk versus time. This goes beyond the well-known time decay of options and expands to the ever-present market risk to an underlying security. How do you execute a successful, conservative strategy and eliminate or reduce market risk?In this book, a range of effective and creative strategies set out a conservative hedging system. This involves the combination of long-term long positions offset by short-term short positions in various configurations. Options Installment Strategies presents variations on the well-known calendar spread and demonstrates how specific strategies work well in short-term swings and even during extended periods of consolidation.
Options traders rely on a vast array of information concerning probability, risk, strategy components, calculations, and trading rules. Traders at all levels, as well as portfolio managers, must refer to numerous print and online sources, each source only providing part of the information they need. This is less than ideal, as online sources tend to be basic, simplified, and in some cases incorrect. Print sources, on the other hand, are mostly focused on a very narrow range of strategies or trading systems. Up until now, there has been no single source to provide a comprehensive reference for the serious trader.The Complete Options Trader is that much-need comprehensive reference, a compilation of the many attributes options traders need.Thomsett lays out a rich and complete guide to 100 strategies, including profit and loss calculations, illustrations, examples, and much more. A thorough evaluation of these strategies (and the rewards and risk involved) demonstrates how a broad approach to analytically using options can and does enhance portfolio profits with lower levels of risk.The book also features a complete glossary of terms used in the options industry, the most comprehensive glossary of this nature currently available.All too often, the attributes of options trading are poorly understood; risk is ignored or over-simplified; hedging is not folded into a strategic evaluation; and options traders shun the value of holding equity positions. No longer-if options traders rely on this comprehensive guide as the reference for the industry.