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“The author’s option trading guidelines include important issues often overlooked by investors. Attention conservative investors! Michael C. Thomsett’s Options Trading for the Conservative Investor has hit a bull’s-eye...for you!”
–Marty Kearney, The Options Institute, Chicago Board Options Exchange
“Michael C. Thomsett has done a terrific job of showing how a conservative investor can use certain option strategies to his advantage. He spells out how that investor can utilize options to provide income, to protect stock holdings, or even as a substitute for stock itself. Every open-minded conservative investor should read this book.”
– Lawrence G. McMillan, publisher, The Options Strategist newsletter; president, McMillan Analysis Corporation; author, Options as a Strategic Investment
“This book is a must for the diligent investor. Perfectly timed for these uncertain markets, Michael C. Thomsett provides a lucid guide for how to approach options trading conservatively, yet also focuses on the fundamental need for good returns and provides real examples throughout.”
–Guy Cohen, author of The Bible of Options Strategies and creator of OptionEasy (www.optioneasy.com)
To protect yourself in today’s volatile and uncertain market environment, you need to hedge losses, create extra sources of income, and reduce risk. In this book, internationally renowned options expert Michael C. Thomsett shows how to do all that effectively. One step at a time, Thomsett helps you exploit 12 carefully chosen options strategies that can dramatically increase your overall returns as you manage risks within your personal limits.
Acknowledgments xi
About the Author xii
Preface xiii
Chapter 1: Setting the Ground Rules 1
Chapter 2: Option Basics 7
Chapter 3: Options in Context 51
Chapter 4: Managing Profits and Losses 85
Chapter 5: Options as Cash Generators 107
Chapter 6: Alternatives to Stock Purchase 133
Chapter 7: Option Strategies in Down Markets 157
Chapter 8: Combination Conservative Techniques 189
Chapter 9: Stock Selection and the Option Contract 221
Appendix: Option Trading Strategies 239
Glossary 243
Index 249