Options as a Strategic Investment

Options as a Strategic Investment

Review Options as a Strategic Investment



This revised edition of the original published content is a combination of investing techniques and tactics for various innovative options currently available in the market. This book will help the reader in identifying the right buy or sell strategies, provides rigorous analyses of neutral trading, details a guide for investment decisions, and gives an overview of options and futures.

This book is the ultimate reference to everything you need to know about option trading. This book contains information that even a seasoned investor may not know. The book is divided into various chapters to allow the reader to skim through most of it then simply focus on the chapters that they are interested in. It discusses many investing strategies that have proven to be successful when applied to options trading. Overall, the book is recommended to every trader—from novice to professional—as it is a complete guide to options. 

About the Author

LAWRENCE G. MCMILLAN is a professional when it comes to trading. He is the founder and president of McMillan Analysis Corporation. He has been awarded the Sullivan Award for his contribution to the growth and integrity of the US options markets. He has authored finance books and appears on Bloomberg TV and CNBC.

Table of Contents

Part I

Chapter 1 – Definitions

Part II

Chapter 2 – Covered Call Writing

Chapter 3 – Call Buying

Chapter 4 – Other Call Buying Strategies

Chapter 5 – Naked Call Writing

Chapter 6 – Ratio Call Writing

Chapter 7 – Bull Spreads

Chapter 8 – Bear Spreads Using Call Options

Chapter 9 – Calendar Spreads

Chapter 10 – The Butterfly Spread

Chapter 11 – Ratio Call Spreads

Chapter 12 – Combining Calendar and Ratio Spreads

Chapter 13 – Reverse Spreads

Chapter 14 – Diagonalizing a Spread 

Part III

Chapter 15 – Put Option Basics

Chapter 16 – Put Option Buying

Chapter 17 – Put Buying in Conjunction with Common Stock Ownership

Chapter 18 – Buying Puts in Conjunction with Call Purchases

Chapter 19 – The Sale of a Put

Chapter 20 – The Sale of a Straddle

Chapter 21 – Synthetic Stock Positions Created by Puts and Calls

Chapter 22 – Basic Put Spreads

Chapter 23 – Spreads Combining Calls and Puts

Chapter 24 – Ratio Spreads Using Puts

Chapter 25 – Leaps

Part IV

Chapter 26 – Buying Options and Treasury Bills

Chapter 27 – Arbitrage

Chapter 28 – Mathematical Applications

Part V

Chapter 29 – Introduction to Index Option Products and Futures

Chapter 30 – Stock Index Hedging Strategies

Chapter 31 – Index Spreading

Chapter 32 – Structured Products

Chapter 33 – Mathematical Considerations for Index Products

Chapter 34 – Futures and Futures Options

Chapter 35 – Futures Options Strategies for Futures Spreads

Part VI

Chapter 36 – The Basics of Volatility Trading

Chapter 37 – How Volatility Affect Popular Strategies

Chapter 38 – Distribution of Stock Prices

Chapter 39 – Volatility Trading Techniques

Chapter 40 – Advanced Concepts

Chapter 41 – Volatility Derivatives

Chapter 42 – Taxes

Chapter 43 – The Best Strategy?


Part VII

Appendix A – Strategy Summary

Appendix B – Equivalent Positions

Appendix C – Formulae

Appendix D – Graphs

Appendix E – Qualified Covered Calls

Appendix F- Portfolio Margin