The Insider's
Automatic Options Strategy:
How to Win on Better Than 9 Out of 10 Trades with Extremely Low Risk

Description:

This up-to-date book explains in easy to understand terms how sophisticated traders can make money each month safely (with small risk) and make capital grow by trading in the Options Market.

The book describes six categories of Options Markets: (1) Stock Index Options; (2) Common Stock Options; (3) Foreign Currency Options; (4) Precious Metal (Gold & Silver) Options; (5) Commodity Futures Options and (6) Treasury Issue Options.

The book is broken into five sections, with a total of 10 chapters. Section 1 defines the terms used in option trading and presents several examples of option trading strategies. Section 2 describes the six option markets in detail. Section 3 presents the statistics and modeling of option strategies. Section 4 describes a BASIC computer program and PC spread sheets as tools for option trading.

Several protective trading strategies are discussed but the author recommends primarily the use of the short spread as the best compromise of return versus risk. For those who wish to take essentially no risk, the book describes the protected straddle which sacrifices return for a small, limited exposure to loss.

The underlying statistics of the option markets are discussed with emphasis on how to use statistics to reduce trading risk. The concept of standard deviation, is used to limit the risk of loss. For example, a spread with strike prices separated by +/-2(alpha) assures a 90% probability of making a profit at the beginning of the option month.

The book shows the reader the nuts and bolts of establishing option short spreads, including the necessary details of practical option trading. The book even explains how to place the order for a safe option position with your broker.

The final section describes a computer program the author has written for option trading. This section describes the main menu for selecting what to do. The computer program, called OPTEVAL, allows the user to (1) Evaluate new short spread position, (2) Evaluate existing short spread positions and (3) Automatically generate tables of called OPVAM developed in Chapter 8 of the book.

For those readers who wish to use the computer software or the PC spread sheets sprinkled throughout the book, the software listing in BASIC and the spread sheet equation listing are provided as appendices.

Contents: