Options Trading A Newbies' Guide: Newbies Guides to Finance, #2

By Alan Northcott

Options are getting more popular every day, and with good reason. If you know how to use options safely, they can add significantly to your portfolio. Once you learn about options, you will never look back. Options give you choices, and that's a fact!

From simply knowing the best way to buy a stock, using a naked put, or how to profit from stocks you already own, using covered calls, on to advanced strategies and pricing - Options Trading - A Newbies' Guide explains in a straightforward manner all the mechanics of options that you need to know. You may have heard that options are risky, but that only applies if you do not know what you're doing.

You can't afford to think you know what you're doing, you need to be sure, and even if you are a beginner at options this book is designed to teach options trading for beginners.

The Newbies' Guides to Finance books give critical advice on a variety of financial issues, and Alan Northcott is an experienced financial writer and trading educator.

Options Trading - A Newbies' Guide is a best-selling book, and here's what people are saying about it:

"Great book for us who want to learn about the possibilities and the dangers. Well written, to the point, and clear. I do recommend it highly." - John W. Telford

"This a good book to read if you are thinking of getting into trading options. It covers all the basics and beyond, providing a firm foundation without spending a lot more money on some of the expensive option courses out there." - Matt Lowe

Options can be a difficult topic, if you don't know where to start. Options Trading - A Newbies Guide is options made easy; all you need to understand about options, and see where you could start using them in your finances.

Buy it Now!

• Language: English
• Publisher: Alan Northcott
• Release date: Jul 28, 2014
• ISBN: 9781501425097

Book preview

Copyright Information Page

Copyright © 2013 by Alan Northcott. All rights reserved worldwide.

No part of this publication may be replicated, redistributed, or given away in any form without the prior written consent of the author/publisher or the terms relayed to you herein.

Alan Northcott

924 S. Easy Street, Sebastian, FL 32958, USA

www.AlanNorthcott.com

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Table of Contents

Copyright Information Page

About the Author

Also by this Author

Disclaimer and Risk Disclosure

Introduction

Options Essentials

What is an Option?

Writing Options

American or European?

Types of Options

Equity Options

Index Options

Commodity Options

Forex Options

Interest Rate Options

Binary Options

Trading Options

Opening an Account

Placing the Order

Market Order or Limit Order

Time Restrictions

Option Pricing

Pricing Basics

The Greeks

Delta

Gamma

Theta

Vega

Rho

Looking at the Markets

Technical Analysis

The Foundation of Technical Analysis

What Is It and Why Should You Care?

But What About...?

Charting Principles

Trends

Support and Resistance

Trends and Channels

Patterns

Reversal Patterns

Head and Shoulders

Inverse Head and Shoulders

Double and Triple Tops and Bottoms

Continuation Patterns

Triangles

Flag and Rectangle

Moving Averages

Simple Moving Average (SMA)

Exponential Moving Average (EMA)

Single Moving Average

Two Moving Averages

Bollinger Bands

Indicators

Moving Average Convergence-Divergence (MACD)

Relative Strength Index (RSI)

Stochastic Oscillator

Indicator Use

Candlestick Patterns

Types of Candlesticks

Candlestick Patterns

Hammer

Hanging Man

Inverted Hammer

Shooting Star

Bullish Engulfing

Bearish Engulfing

Piercing Candle

Dark Cloud Cover

Bullish Harami

Bearish Harami

Candlestick Rules

Fundamental Analysis

The Economy

Sector Selection

Company Selection

Option Strategies

Naked Put

Covered Call

Choosing to Exercise an American Option

Advanced Strategies

Spreads

Long Stock with Protective Put

Short Stock with Protective Call

Bull Call Spread

Long Straddle

Other Strategies

Conclusion

Glossary of Terms

Final Note

About the Author

Alan Northcott has been writing and educating in the financial sector for many years and now resides in Florida. His books have been featured on www.better-trades.com, and attract comments from venerable traders such as Greg Morris.

In addition to works published in his own name, Northcott has been responsible for the production of several trading courses, e-books and countless articles.

Also by this Author

In this series: -

Stocks – A Newbies Guide

A plain man’s guide to the markets, explaining the reasons and ways to invest in stocks.

Forex - A Newbies Guide

For anyone who's even thought about Forex and didn't know where to start, I can't imagine any newbie Forex book being more helpful than this. The author doesn't talk down to you, and he uses analogies that convey the concepts quickly and completely. – Aisling D’Art

Other Works: -

The Complete Guide to Investing in Short Term Trading

I'd give this book five stars and recommend it as a required reference book -LO'D

This is easily one of the most useful books I've read in a long time - RF

The Complete Guide to Using Candlestick Charting

For a complete beginner like me, this book is an excellent resource to learn Candlestick Charting from start to finish. - TM

The Complete Guide to Investing in Gold and Precious Metals

I believe this is a good book for anyone that has no or very little knowledge about investing in gold or precious metals. - IW

The Mutual Funds Book

This book comes highly recommended to anyone of any competency looking to better understand mutual funds and investing. - DR

The Hedge Funds Book

The highly experienced author, Alan Northcott, covers both the basics of hedge funds and the more complex issues of strategies and assembling a portfolio. - AS

Asset Protection for Business Owners and High Income Earners

The book is an excellent read for any ethical-non-Swiss-account-holding business owner. - BP

The Complete Guide to Investing in Derivatives

For full reviews, see book listings at your favorite bookseller.

Disclaimer and Risk Disclosure

By reading this book you agree that this book and any ideas expressed within are for informational and educational purposes only and do not constitute advice or recommendations. Any form of financial trading can be a risky business, and may not be suitable for all investors. You must understand that the leverage of option trading can work against you as well as for you.

Before you start option trading, you should carefully consider your financial situation, your level of experience and knowledge, and your appetite for risk. You could lose some or all of your trading capital, and you should not trade with money that you cannot afford to lose. No liability is accepted by Alan Northcott or his successors for any losses whether direct, indirect or consequential suffered by the use of any information contained herein.

The information given in this book is for educational and personal enjoyment purposes only, and is not a recommendation to enter into trading in any form. If any specific trading or investment or legal advice is required, the services of a competent and appropriately licensed person should be sought.

Introduction

In the world of financial trading, options stand alone.

It is easy to understand how you can buy and sell shares in the company. It is a slight stretch to understand how you can

Reviews for Options Trading A Newbies' Guide

[Matt · Rating: 4 out of 5 stars]

Pretty good, covers most terms - but any reader interested in the market should read many more books. I feel this book is more the sort one gives to an Aunt to explain Options, rather than something I would bet my money on (too short/leaves too much to be understood by the reader as a standalone)