Options Theory and Trading: A StepbyStep Guide to Control Risk and Generate Profits,New

When used correctly, options can greatly enhance your profits. The leverage they provide allows small accounts to trade like big ones, without the normally associated risks. And, in times of financial turmoil, options can keep you from incurring catastrophic losses. There are many ways in which options can both protect your portfolio and help you profitbut in order to take advantage of these opportunities, you have to learn how to properly use options in your investment endeavors.As the cofounder and former chief options strategist for the Options University, and now as founder of ION Options, author Ron Ianieri is one of the most wellrespected, and wellinformed, individuals in this field. Over the course of his successful twentyplusyear career in the options market, he has trained many professional traders, as well as numerous active investors. Now, with Options Theory and Trading, he shares his extensive experience with you.Based on a proven optiontrading course created by Ianieri, which follows a logical stepbystep progression, this book opens with an indepth explanation of option terms and theory in Part Onebecause learning the language and understanding the theory is the foundation upon which successful option strategies are built. Continuing along these lines, Ianieri takes the time to explore the unique risks and rewards of call and put options, and introduces you to the option pricing model, the 'Greeks,' and synthetic positions.In Part Two, Ianieri moves on to basic trading strategies involving stock and options, including the covered call/buywrite strategy, the covered put/sellwrite strategy, the protective put strategy, the synthetic put/protective call strategy, and lastly, the collar strategy. In addition to this, you'll also discover the role of the 'lean' in options trading and how to 'roll' your position to establish a stream of income.While Ianieri demonstrates how well options function in unison with a stock positionenhancing potential gains, providing profit protection, and limiting the risk of the entire investmenthe also examines how they can be even more effective when traded against each other. In Part Three, you'll gain an indepth understanding of how to use vertical, diagonal, and time spreads in this way, and discover how straddles and strangleswhich both feature the use of options in unison with one othercan help you achieve strong premium collection.Rounding out this detailed discussion of options is a close look at combination strategies. Part Four of Options Theory and Trading takes you through fully hedged strategies known as the Butterfly and the Condor, and offers practical advice on how and when to use them.In an environment of increasing volatility, there's great risk of market corrections endangering the capital of individual investors around the world. What you need to achieve longterm success in today's market is the right guidance. With Options Theory and Trading, you'll quickly discover how to use options to increase your portfolio's profit potential and reduce the risks you'll inevitably face.