InhaltsangabeAcknowledgments vii Element Key ix Introduction xi Chapter 1: Calls and Puts: Defining the Field of Play 1 The Call Option 12 The Put Option 30 Option Valuation 36 Chapter 2: Opening and Tracking: How It All Works 51 A Note on the Expiration Cycle 56 Opening and Closing Option Trades 58 Calculating the Rate of Return for Sellers 63 Chapter 3: Buying Calls: Maximizing the Rosy View 73 Understanding the Limited Life of the Call 74 Judging the Call 79 Call Buying Strategies 84 Defining Profit Zones 97 Chapter 4: Buying Puts: The Positive Side of Pessimism 107 The Limited Life of the Put 109 Judging the Put 116 Put Buying Strategies 124 Defining Profit Zones 134 Chapter 5: Selling Calls: Conservative and Profitable 141 Selling Uncovered Calls 144 Selling Covered Calls 158 Calculating Rate of Return 165 Chapter 6: Selling Puts: The Overlooked Strategy 173 Analyzing Stock Values 177 Evaluating Risks 180 Put Strategies 181 Chapter 7: Closing Positions: Cover, Close, Exercise or Roll 199 Defining Possible Outcomes of Closing Options 199 Exercising the Option 201 Timing the Decision 209 Avoiding Exercise 214 Chapter 8: Paper Trading: A Test Run of the Theory 231 The Case for Paper Trading 233 Two Sites Worth Checking 236 Proceeding with Paper-Trading Plan 239 Chapter 9: Calculating the Return: A Complex Aspect to Options 243 Finding a Realistic Method 244 Annualizing Models and Guidelines 246 An Overview of Basic Calculation for Calls 250 Anticipating the Likely Return 255 Glossary 263 Recommended Reading 279 About the Author 281 Index 283

MICHAEL C. THOMSETT has written more than seventy books on investing, real estate, business, and management. He is the author of several Wiley books, including the previous editions of the bestselling Getting Started in Options, as well as Getting Started in Fundamental Analysis, Getting Started in Real Estate Investing, and Getting Started in Swing Trading. He contributes articles to many websites, including Minyanville Media and TradingMarkets.com as well as investor-oriented magazines such as BetterInvesting and the AAII Journal.