Get Rich with Options: Four Winning Strategies Straight from the Exchange Floor (Agora Series)

275 Pages·2009·7.51 MB·English

by  Lee Lowell

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Second Edition
Four Winning Strategies
Straight from
the Exchange Floor
LEE LOWELL
John Wiley & Sons, Inc.
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Copyright © 2009 by Lee Lowell. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form
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Library of Congress Cataloging-in-Publication Data:
Lowell, Lee, 1967-
Get rich with options: four winning strategies straight from the exchange fl oor/Lee Lowell.—2nd ed.
p. cm.
Includes index.
ISBN 978-0-470-44589-1 (cloth)
1. Options (Finance) I. Title.
HG6024.A3L69 2009
332.64’53—dc22
2009032181
Printed in the United States of America
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To my wife, Amy, and my three children—
Sydney, Josie, and Griffi n—all whom I
love more than anything in the world
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CONTENTS
Preface to the Second Edition ix
Acknowledgments xiii
Part One: T he option basics 1
CHAPTER 1: It’s All about the Calls and Puts 3
CHAPTER 2: How Options are Priced 15
CHAPTER 3: Option Volatility 27
CHAPTER 4: Stocks versus Options 47
CHAPTER 5: Option Selling Is Your Key to Success 57
Part Two: The strategies 69
CHAPTER 6: Buy All the Stock You Want for Half the Price 71
CHAPTER 7: Getting Paid to Buy Your Favorite Stock 93
CHAPTER 8: Option Credit Spreads: The All-Star Strategy 121
CHAPTER 9: A Day in the Life of the Market Maker 173
vii
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viii CONTENTS
CHAPTER 10: Put Your Stocks to Work—Sell Covered Calls 185
CHAPTER 11: A Bonus Strategy: Ratio Option Spreads 205
Part three: Getting Ready to Trade 227
CHAPTER 12: Tools of the Trade 229
CHAPTER 13: Brokers and Commissions 235
Conclusion 243
Index 247
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