McMillan on Options
Chapter One
Option History,
Definitions,
and Terms
There are many types of listed options trading today: stock options,
index options, and futures options are the major ones. The object of
this book is to explore some of the many ways in which options can
be used and to give practical demonstrations that will help the reader
make money.
Options are useful in a wide array of applications. They can be
used to establish self-contained strategies, they can be used as substitutes
for other instruments, or they can be used to enhance or protect
one's position in the underlying instrument, whether that is
stock, index, or futures. In the course of this book, the reader may
discover that there are more useful applications of options than he
ever imagined. As stated in the Preface, this book is not really meant
for novices but contains all definitions to serve as a platform for the
larger discussion.
UNDERLYING INSTRUMENTS
Let's begin with the definitions of the ... read full excerpt from McMillan on Options ebook
