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Home > Business & Economics > Investments & Securities > Getting Started in Options
Getting Started in Options
by Thomsett, Michael C.
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Getting Started in Options

Discover the Dynamic World of Options Investing

Getting Started In Options

Seventh Edition

Many people fail to capitalize on the potentially lucrative opportunities that options present, simply because they don't fully understand how options work. But with Getting Started in Options, Seventh Edition, author Michael C. Thomsett looks to change this.

Written in a straightforward and accessible style, Getting Started in Options, Seventh Edition provides you with a solid foundation in this field, and will help you become fully familiar with one of today's most important investment vehicles. Each page of this informative guide addresses essential options issues, including how to:

  • Identify your own risk tolerance levels and decide how to effectively incorporate options into your own portfolio

  • Master options terminology and concepts

  • Use options in a powerful insurance strategy to protect against losses in stock investments

  • Perform "paper trades" before putting real money at risk

  • Utilize the many new online resources available to you

  • Understand time values, striking price, and expiration

Besides new examples, updated charts, and timely investor tips, this latest edition also includes important new chapters that reflect ongoing innovations within the options market, such as the many uses of options beyond their obvious buying and selling functions, different methods available to calculate returns on options trades, and much more.

You don't need to be a financial expert to make it in the world of options, but you do need to be well informed. With Getting Started in Options, Seventh Edition as your guide you'll quickly discover how to make options work for you.



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Title of ebook: Getting Started in Options
ISBN: 9780470175453
parent-ISBN: 9780470138069
Publisher: John Wiley & Sons, Inc.
Internet download file size: 4572 kb
Pages: 400
Published: 08-2007
Released online for download: 08-13-2007
Author of eBook: Thomsett, Michael C.
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Getting Started in Options


Chapter One

Calls and Puts: Defining the Field of Play

Nine-tenths of wisdom is being wise in time. -Theodore Roosevelt, speech, June 14, 1917

The study of options can expand your perceptions about the range of possibilities. Most people are familiar with two forms of investment: equity and debt. There is a third method, however, and that third method is far more interesting than the other two. Its attributes are unlike any that most people understand-and these differences can be viewed as a troubling set of problems, or as a promising set of opportunities.

Let's begin with a brief review, laying the groundwork about the two basic ways to invest. An equity investment is the purchase of ownership in a company. The best-known example of this is the purchase of stock in publicly listed companies, whose shares are sold through the stock exchanges. Each share of stock represents a portion of the total capital, or ownership, in the company.

When you buy 100 shares ... read full excerpt from Getting Started in Options ebook



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