Trading Options For Dummies

Learn to:

• Navigate option buying and selling
• Capitalize in a sideways market
• Combine options to limit risk

Options–focused trading insights that help you reel in the profits

Thinking about trading options, but aren't sure where to start? This friendly guide explains in plain English how to choose the right ones for your investment needs, capitalize on sideways movements, and much more. Options are the most versatile trading instrument, and everything you need to take advantage of their unlimited potential is inside.

• Don your trader's cap get the inside scoop on what every trader needs to know about options, from alternative, reduced–risk approaches to ETFs and everything in between
• Markets, sectors, and strategies (oh my!) find strategies for using market assessment methods and technical analysis of sectors using indicators that are best suited for trading options
• Contractually speaking get the scoop on option contracts, understand how to trade these securities on exchanges, and make sure your rights and obligations are satisfied
• Check, mate discover how to set yourself up for success through position adjustments, regardless of the direction of the move up, down, or sideways

Open the book and find:

• The lowdown on option risks and rewards
• Tips on analyzing mood swings in the market
• ETFs, options, and other sneaky tricks
• How to design a killer trading plan
• Guidance on protecting your portfolio with options
• How to make money in a sideways market
• Ways to thrive on volatility
• Top ten option strategies
• Do's and don'ts in options trading

Part I: Getting Started 7

Chapter 1: Options Trading and the Individual Investor 9

Chapter 2: Introducing Options 19

Chapter 3: Trading Places: Where the Action Happens 33

Chapter 4: Option Risks and Rewards 51

Part II: Evaluating Markets, Sectors, and Strategies 67

Chapter 5: Analyzing Mood Swings in the Market 69

Chapter 6: Sector Analysis: Technical and Fundamental 91

Chapter 7: Practicing Before You Swing 117

Chapter 8: Designing A Killer Trading Plan 135

Part III: What Every Trader Needs to Know About Options 151

Chapter 9: Getting to Know Different Option Styles 153

Chapter 10: Protecting Your Portfolio with Options 175

Chapter 11: Increasing Profit Potential and Decreasing Risk 195

Chapter 12: Combination Strategies: Spreads and Other Wild Things 215

Chapter 13: ETFs, Options, and Other Sneaky Tricks 229

Part IV: Advanced Strategies for Options Traders 253

Chapter 14: Making Money without Worrying About the Market’s Direction 255

Chapter 15: Letting Volatility Lead You to Trading Opportunities 275

Chapter 16: Trading Profitably When Markets Move Sideways 305

Part V: The Part of Tens 333

Chapter 17: Ten Top Option Strategies 335

Chapter 18: Ten Do’s and Don’ts in Options Trading 349

Index 357

Dr. Joe Duarte(www.joe–duarte.com) is a financial writer, active private investor and trader, and former money manager/president of River Willow Capital Management. His work has been quoted in Barron's, Marketwatch.com, and The Wall Street Journal. He is the author of eight financial books, including Trading Futures For Dummies, Market Timing For Dummies, Futures and Options For Dummies, and The Everything Investing in Your 20s and 30s Book. Optionetics provides investment education services and tools for trading in today's markets