Overview
Options are potentially one of the most profitable investment instruments available in today's intensely volatile financial markets. Just a few years ago, the information needed to exploit the vast earnings potential of options was beyond the reach of all but a handful of analysts. Now, anyone with a PC and a few basic software tools has direct access to all the up-to-the-minute market information needed to compete successfully with the "big boys." But, having information and knowing how to wield it are two very different things. In this groundbreaking book, online options trading innovator George Fontanills arms you with the knowledge and skills you need to unleash the phenomenal power of your computer to become a successful online options trader.
Following a concise review of the basics of online trading--including hardware and software requirements and essential online resources--Fontanills cuts to the chase with step-by-step coverage of 15 proven managed risk option trading strategies. Specifically designed for online traders, these tested off-floor techniques provide you with a sure-fire method for consistently building up your trading account. Drawing upon his years as a leading international options educator, Fontanills makes it easy for you to master online options trading by walking you through a series of hypothetical trades that demonstrate how to compute the maximum risk, maximum profit, break-evens, and exit alternatives for each strategy.
Trade Options Online also includes a comprehensive guide to fundamental and technical analysis methodologies, a detailed list of 240 hot financial resources, websites analyzed from the point of view of an online options trader, and a review of more than 70 online brokerages. Trade Options Online is your complete guide to earning a living and asking a killing as an online options trader.
Synopsis
Since the first edition of Trade Options Online was published nearly eight years ago, much has changed in this fast-moving field. The ease of electronic trading combined with a variety of new products—including new indexes and ways to trade volatility—has spurred the ongoing growth of the options market and created profitable new opportunities in the process.
As advances in technology allow online options traders to become more independent, understanding the intricacies of this marketplace and making good trading decisions have become more important than ever. That's why options trading innovator George Fontanills has written a fully revised and updated second edition of his best-selling book.
Filled with in-depth insights and practical advice, this accessible guide provides you with a working knowledge of essential options strategies and the computer savvy to enhance your online trading endeavors. While the first few chapters outline the basics of online options trading, this book quickly moves on to address how you can integrate proven options-based trading techniques into a comprehensive plan that fits your personal preferences.
Fontanills details various managed-risk option strategies—from vertical spreads to ratio backspreads—that are designed to take advantage of everyday market opportunities, and walks you through a series of hypothetical trades that demonstrate how to compute the maximum risk, maximum profit, breakevens, and exit alternatives for each strategy. Along the way, Fontanills also takes the time to discuss other essential elements of this discipline, including trading futures options, streamlining your trading approach, and mastering the inner workings of the order process, to name a few.
In addition to this information, several appendices offer guidance that will help you maintain a competitive online edge, including a short list of options trading software; reviews of more than 200 financial resource sites broken down by specific categories; surveys of online brokerages as they compare to one another in services, commissions, and resources; and much more.
While it's rewarding to build wealth from the comfort of your computer, it takes time to learn how financial markets function as well as develop effective trading strategies to operate within them. The Second Edition of Trade Options Online will show you how to do this, and much more, whether you're looking to boost returns by using leverage or protect your investments by hedging.