Options Trading Strategies: Retirement Income from Weekly ...

Options Trading Strategies: Retirement Income from Weekly Options

Introduction: What You'll Learn in this Guide.....................................................................................5 Chapter 1: Option Basics......................................................................................................................... 6 Calls and Puts.......................................................................................................................... 7 Options Profits and Leverage................................................................................................................. 8,9 Exercising Options.................................................................................................................. 10 Intrinsic and Time Value...........................................................................................................10,11 Bids and Offers...........................................................................................................................11 Option Expirations ....................................................................................................................................11 Options Chains....... .................................................................................................................................. 11,12 Settlements ...............................................................................................................................12,13 Benefits of Weekly Options.................................................................................................... 14



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Important Things to Remember ............................................................................................................14 Chapter 2 Writing Options ...................................................................................................................... 12 Covered and Naked Calls......................................................................................................................... 15 Why Sell Covered Calls..............................................................................................................15,16 Naked Calls................................................................................................................................ 17 Important Things to Remember ............................................................................................................17 Chapter 3 Greeks......................................................................................................................18 Delta,Vega Gamma, Theta and Rho....................................................................................................... 18,19 Option Pricing...........................................................................................................................20 Implied Volatility......................................................................................................................20 Important Things to Remember.............................................................................................. 21 Chapter 4 Credit Spreads..........................................................................................................22 Bear Call Spread........................................................................................................................ 22,23



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Bull Put Spread.........................................................................................................................24 The Benefits of Credit Spreads ............................................................................................................. 25 Important Things to Remember............................................................................................. 25 Chapter 5 Trading Credit Spreads .........................................................................................................26 Trading Bull Put Spreads.........................................................................................................27 Trading Bear Call Spreads....................................................................................................... 28 Determining Adequate Liquidity............................................................................................29 Lack of Volatility......................................................................................................................29 Important Things to Remember............................................................................................. 25 Chapter 5 Trading Credit Spreads .........................................................................................................26 Trading Bull Put Spreads.........................................................................................................27 Trading Bear Call Spreads....................................................................................................... 28 Credit Spread Strategies......................................................................................................... 29



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How to Choose the Right Credit Spread .............................................................................................30 The Delta of the Credit Spread..............................................................................................................31 The Wideness of the Credit Spread ...................................................................................................... 31 Risk Management.....................................................................................................................32 Stop Loss and Take Profit........................................................................................................33 Support and Resistance / Trend Lines.................................................................................................. 34 Specific Trades............................................................................................................................35-40 Important Things to Remember ........................................................................................................... 40 Apendix..................................................................................................................................... 41 Bollinger Bands, MACD and RSI............................................................................................. 41-43



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Introduction

Options continue to grow at a very sharp pace as investor become aware of their enormous capabilities. With options, an investor can profit during trending markets as well as sideways markets, and can provide insurance for a portfolio of stocks, commodities and even currencies.

This guide will focus on a number of specific trading strategies, but prior to diving into these strategies, we will discuss calls and puts, which can be either short or long. That is correct, you can have a long call or a short put, a short call or a long put, and by the time you are finished reading this book, it will all make sense to you!

Once you have the basics down, we will move on to credit spread strategies, which the best income producing strategies available. If you are interested in creating a strategy that has defined risk, produces profitable monthly cash flows, while performing well in all market conditions, then credit spreads are the right strategy for you.

Every trader should be aware of these types of option trading strategies, because if you don't, you risk being on the losing side of a game. In fact, historically, 80% of the options traded settle out of the money.

Learning about options may seem like a daunting task at first. In many ways, it is like learning a new language. Fortunately, once you get a handle on this topic it will make sense.

So read on and learn how you too can profit with credit spreads, and earn a safe monthly income with predetermine risk.



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