Options as a strategic investment: study guide
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
New York, NY u.a.
New York Inst. of Finance
2002
|
| Ausgabe: | 4. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | VIII, 161 S. graph. Darst. |
| ISBN: | 0735202389 |
Internformat
MARC
| LEADER | 00000nam a2200000 c 4500 | ||
|---|---|---|---|
| 001 | BV017094465 | ||
| 003 | DE-604 | ||
| 005 | 20030428 | ||
| 007 | t | ||
| 008 | 030428s2002 d||| |||| 00||| eng d | ||
| 020 | |a 0735202389 |9 0-7352-0238-9 | ||
| 035 | |a (OCoLC)50198073 | ||
| 035 | |a (DE-599)BVBBV017094465 | ||
| 040 | |a DE-604 |b ger |e rakwb | ||
| 041 | 0 | |a eng | |
| 049 | |a DE-N2 | ||
| 050 | 0 | |a HG6042 | |
| 082 | 0 | |a 332.63228 |b McMillan | |
| 100 | 1 | |a MacMillan, Lawrence G. |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Options as a strategic investment |b study guide |c Lawrence G. McMillan |
| 250 | |a 4. ed. | ||
| 264 | 1 | |a New York, NY u.a. |b New York Inst. of Finance |c 2002 | |
| 300 | |a VIII, 161 S. |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 650 | 4 | |a Options (Finance) | |
| 856 | 4 | 2 | |m HBZ Datenaustausch |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=010309717&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
| 999 | |a oai:aleph.bib-bvb.de:BVB01-010309717 | ||
Datensatz im Suchindex
| _version_ | 1804129975123574784 |
|---|---|
| adam_text | Contents
Preface xv
Parti
BASIC PROPERTIES OF STOCK OPTIONS
Chapter 1
Definitions 3
Elementary Definitions 3
Factors Influencing the Price of an Option 9
Exercise and Assignment: The Mechanics 15
The Option Markets 22
Option Symbology 23
Details of Option Trading 27
Order Entry 32
Profits and Profit Graphs 34
Part II
CALL OPTION STRATEGIES
Chapter 2
Covered Call Writing 39
The Importance of Covered Call Writing 39
Covered Writing Philosophy 42
The Total Return Concept of Covered Writing 45
Computing Return on Investment 47
iv Contents
Execution of the Covered Write Order 56
Selecting a Covered Writing Position 58
Writing against Stock Already Owned 62
Diversifying Return and Protection in a Covered Write 66
Follow Up Action 70
Special Writing Situations 87
Covered Call Writing Summary 93
Chapter 3
Call Buying 95
Why Buy? 95
Risk and Reward for the Call Buyer 97
Which Option to Buy? 101
Advanced Selection Criteria 103
Follow Up Action 107
A Further Comment on Spreads 117
Chapter 4
Other Call Buying Strategies 118
The Protected Short Sale (or Synthetic Put) 118
Follow Up Action 122
The Reverse Hedge (Simulated Straddle) 123
Follow Up Action 126
Altering the Ratio of Long Calls to Short Stock 128
Summary 131
Chapter 5
Naked Call Writing 132
The Uncovered (Naked) Call Option 133
Investment Required 135
The Philosophy of Selling Naked Options 137
Risk and Reward 138
Summary 144
Chapter 6
Ratio Call Writing 146
The Ratio Write 146
Investment Required 250
Contents v
Selection Criteria 151
The Variable Ratio Write 255
Follow Up Action 158
An Introduction to Call Spread Strategies 168
Chapter 7
Bull Spreads 172
Degrees of Aggressiveness 175
Ranking Bull Spreads 176
Follow Up Action 279
Other Uses of Bull Spreads 180
Summary 185
Chapter 8
Bear Spreads Using Call Options 186
The Bear Spread 186
Selecting a Bear Spread 189
Follow Up Action 190
Summary 190
Chapter 9
Calendar Spreads 191
The Neutral Calendar Spread 192
Follow Up Action 194
The Bullish Calendar Spread 196
Follow Up Action 197
Using All Three Expiration Series 198
Summary J 99
Chapter 10
The Butterfly Spread 200
Selecting the Spread 203
Follow Up Action 206
Summary 209
Chapter 11
Ratio Call Spreads 210
Differing Philosophies 213
vi Contents
Follow Up Action 217
Summary 221
Chapter 12
Combining Calendar and Ratio Spreads 222
Ratio Calendar Spread 222
Choosing the Spread 225
Follow Up Action 226
Delta Neutral Calendar Spreads 227
Follow Up Action 229
Chapter 13
Reverse Spreads 230
Reverse Calendar Spread 230
Reverse Ratio Spread (Backspread) 232
Chapter 14
Diagonalizing a Spread 236
The Diagonal Bull Spread 236
Owning a Call for Free 239
Diagonal Backspreads 240
Call Option Summary 241
Part III
PUT OPTION STRATEGIES
Chapter 15
Put Option Basics 245
Put Strategies 245
Pricing Put Options 247
The Effect of Dividends on Put Option Premiums 248
Exercise and Assignment 250
Conversion 253
Chapter 16
Put Option Buying 256
Put Buying versus Short Sale 256
Selecting Which Put to Buy 258
Contents vii
Ranking Prospective Put Purchases 261
Follow Up Action 262
Loss Limiting Actions 267
Equivalent Positions 270
Chapter 17
Put Buying in Conjunction with Common Stock Ownership 271
Which Put to Buy 273
Tax Considerations 275
Put Buying As Protection for the Covered Call Writer 275
No Cost Collars 278
Chapter 18
Buying Puts in Conjunction with Call Purchases 281
Straddle Buying 282
Selecting a Straddle Buy 285
Follow Up Action 285
Buying a Strangle 288
Chapter 19
The Sale of a Put 292
The Uncovered Put Sale 292
Follow Up Action 295
Evaluating a Naked Put Write 296
Buying Stock below Its Market Price 299
The Covered Put Sale 300
Ratio Put Writing 300
Chapter 20
The Sale of a Straddle 302
The Covered Straddle Write 302
The Uncovered Straddle Write 305
Selecting a Straddle Write 307
Follow Up Action 308
Equivalent Stock Position Follow Up 312
Starting Out with the Protection in Place 313
Strangle (Combination) Writing 315
Further Comments on Uncovered Straddle and Strangle Writing 318
viii Contents
Chapter 21
Synthetic Stock Positions Created by Puts and Calls 321
Synthetic Long Stock 321
Synthetic Short Sale 323
Splitting the Strikes 325
Summary 328
Chapter 22
Basic Put Spreads 329
Bear Spread 329
Bull Spread 332
Calendar Spread 333
Chapter 23
Spreads Combining Calls and Puts 336
The Butterfly Spread 336
Combining an Option Purchase and a Spread 33.9
A Simple Follmu Up Action for Bull or Bear Spreads 342
Three Useful but Complex Strategies 345
Selecting the Spreads 353
Summary 356
Chapter 24
Ratio Spreads Using Puts 358
The Ratio Put Spread 358
Using Deltas 361
The Ratio Put Calendar Spread 361
A Logical Extension (The Ratio Calendar Combination) 364
Put Option Summary 366
Chapter 25
LEAPS 367
The Basics 368
Pricing LEAPS 369
Comparing LEAPS and Short Term Options 374
LEAPS Strategies 375
Speculative Option Buying with LEAPS 382
Selling LEAPS 390
Contents ix
Spreads Using LEAPS 403
Summary 409
Part IV
ADDITIONAL CONSIDERATIONS
Chapter 26
Buying Options and Treasury Bills 413
How the Treasury Bill/Option Strategy Operates 413
Summary 421
Chapter 27
Arbitrage 422
Basic Put and Call Arbitrage ( Discounting ) 423
Dividend Arbitrage 425
Conversions and Reversals 428
More on Carrying Costs 430
Back to Conversions and Reversals 431
Risks in Conversions and Reversals 433
Summary of Conversion Arbitrage 437
The Interest Play 438
The Box Spread 439
Variations on Equivalence Arbitrage 443
The Effects of Arbitrage 444
Risk Arbitrage Using Options 445
Pairs Trading 454
Facilitation (Block Positioning) 455
Chapter 28
Mathematical Applications 456
The Black Scholes Model 456
Expected Return 466
Applying the Calculations to Strategy Decisions 472
Facilitation or Institutional Block Positioning 482
Aiding in Follow Up Action 485
Implementation 488
Summary 489
x Contents
PartV
INDEX OPTIONS AND FUTURES
Chapter 29
Introduction to Index Option Products and Futures 493
Indices 493
Cash Based Options 500
Futures 506
Options on Index Futures 512
Standard Options Strategies Using Index Options 516
Put Call Ratio 520
Summary 523
Chapter 30
Stock Index Hedging Strategies 531
Market Baskets 531
Program Trading 537
Index Arbitrage 547
Follow Up Strategies 557
Market Basket Risk 560
Impact on the Stock Market 561
Simulating an Index 566
Trading the Tracking Error 574
Summary 577
Chapter 31
Index Spreading 579
Inter Index Spreading 579
Summary 588
Chapter 32
Structured Products 589
Part I: Riskless Ownership of a Stock or Index 590
The Structure of a Structured Product 590
Cash Value 593
The Cost of the Imbedded Call Option 594
Price Behavior Prior to Maturity 595
SIS 596
Contents xi
Computing the Value of the Imbedded Call When the Underlying
Is Trading at a Discount 602
The Adjustment Factor 602
Other Constructs 607
Option Strategies Involving Structured Products 613
Lists of Structured Products 618
Part II: Products Designed to Provide Income 618
PERCS 618
Call Feature 620
A PERCS Is a Covered Call Write 622
Price Behavior 623
PERCS Strategies 625
PERCS Summary 636
Other Structured Products 637
Structured Product Summary 640
Chapter 33
Mathematical Considerations for Index Products 641
Arbitrage 641
Mathematical Applications 644
Chapter 34
Futures and Futures Options 652
Futures Contracts 653
Options on Futures 660
Futures Option Trading Strategies 674
Commonplace Mispricing Strategies 683
Summary 695
Chapter 35
Futures Option Strategies for Futures Spreads 696
Futures Spreads 696
Using Futures Options in Futures Spreads 704
Summary 720
xii Contents
Part VI
MEASURING AND TRADING VOLATILITY
Chapter 36
The Basics of Volatility Trading 727
Definitions of Volatility 728
Another Approach: GARCH 731
Moving Averages 732
Implied Volatility 732
The Volatility of Volatility 734
Volatility Trading 743
Why Does Volatility Reach Extremes? 744
Summary 748
Chapter 37
How Volatility Affects Popular Strategies 749
Vega 749
Implied Volatility and Delta 753
Effects on Neutrality 755
Position Vega 757
Outright Option Purchases and Sales 757
Time Value Premium is a Misnomer 762
Volatility and the Put Option 765
Straddle or Strangle Buying and Selling 766
Call Bull Spreads 767
Vertical Put Spreads 775
Put Bear Spreads 777
Calendar Spreads 778
Ratio Spreads and Backspreads 780
Summary 782
Chapter 38
The Distribution of Stock Prices 783
Misconceptions about Volatility 783
Volatility Buyer s Rule! 787
The Distribution of Stock Prices 789
What This Means for Option Traders 795
Stock Price Distribution Summary 796
Contents xiii
The Pricing of Options 798
The Probability of Stock Price Movement 798
Expected Return 809
Summary 810
Chapter 39
Volatility Trading Techniques 812
Two Ways Volatility Predictions Can Be Wrong 813
Trading the Volatility Prediction 814
Trading the Volatility Skew 837
Volatility Trading Summary 844
Chapter 40
Advanced Concepts 846
Neutrality 846
The Greeks 848
Strategy Considerations: Using the Greeks 866
Advanced Mathematical Concepts 901
Summary 907
Chapter 41
Taxes # 908
History 908
Basic Tax Treatment 920
Exercise and Assignment 923
Special Tax Problems 922
Summary 925
Tax Planning Strategies for Equity Options 925
Summary 930
Chapter 42
The Best Strategy? 932
General Concepts: Market Attitude and Equivalent Positions 932
What Is Best for Me Might Not Be Best for You 934
Mathematical Ranking 936
Summary 937
Postscript 938
xiv Contents
Part VII
APPENDICES
Appendix A
Strategy Summary 943
Appendix B
Equivalent Positions 945
Appendix C
Formulae 947
Appendix D
Graphs 957
Appendix E
Qualified Covered Calls 961
Glossary 963
Index 983
t
|
| any_adam_object | 1 |
| author | MacMillan, Lawrence G. |
| author_facet | MacMillan, Lawrence G. |
| author_role | aut |
| author_sort | MacMillan, Lawrence G. |
| author_variant | l g m lg lgm |
| building | Verbundindex |
| bvnumber | BV017094465 |
| callnumber-first | H - Social Science |
| callnumber-label | HG6042 |
| callnumber-raw | HG6042 |
| callnumber-search | HG6042 |
| callnumber-sort | HG 46042 |
| callnumber-subject | HG - Finance |
| ctrlnum | (OCoLC)50198073 (DE-599)BVBBV017094465 |
| dewey-full | 332.63228 |
| dewey-hundreds | 300 - Social sciences |
| dewey-ones | 332 - Financial economics |
| dewey-raw | 332.63228 |
| dewey-search | 332.63228 |
| dewey-sort | 3332.63228 |
| dewey-tens | 330 - Economics |
| discipline | Wirtschaftswissenschaften |
| edition | 4. ed. |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>01111nam a2200313 c 4500</leader><controlfield tag="001">BV017094465</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20030428 </controlfield><controlfield tag="007">t</controlfield><controlfield tag="008">030428s2002 d||| |||| 00||| eng d</controlfield><datafield tag="020" ind1=" " ind2=" "><subfield code="a">0735202389</subfield><subfield code="9">0-7352-0238-9</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)50198073</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)BVBBV017094465</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield><subfield code="e">rakwb</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-N2</subfield></datafield><datafield tag="050" ind1=" " ind2="0"><subfield code="a">HG6042</subfield></datafield><datafield tag="082" ind1="0" ind2=" "><subfield code="a">332.63228</subfield><subfield code="b">McMillan</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">MacMillan, Lawrence G.</subfield><subfield code="e">Verfasser</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Options as a strategic investment</subfield><subfield code="b">study guide</subfield><subfield code="c">Lawrence G. McMillan</subfield></datafield><datafield tag="250" ind1=" " ind2=" "><subfield code="a">4. ed.</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">New York, NY u.a.</subfield><subfield code="b">New York Inst. of Finance</subfield><subfield code="c">2002</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">VIII, 161 S.</subfield><subfield code="b">graph. Darst.</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Options (Finance)</subfield></datafield><datafield tag="856" ind1="4" ind2="2"><subfield code="m">HBZ Datenaustausch</subfield><subfield code="q">application/pdf</subfield><subfield code="u">http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=010309717&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA</subfield><subfield code="3">Inhaltsverzeichnis</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-010309717</subfield></datafield></record></collection> |
| id | DE-604.BV017094465 |
| illustrated | Illustrated |
| indexdate | 2024-07-09T19:13:40Z |
| institution | BVB |
| isbn | 0735202389 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-010309717 |
| oclc_num | 50198073 |
| open_access_boolean | |
| owner | DE-N2 |
| owner_facet | DE-N2 |
| physical | VIII, 161 S. graph. Darst. |
| publishDate | 2002 |
| publishDateSearch | 2002 |
| publishDateSort | 2002 |
| publisher | New York Inst. of Finance |
| record_format | marc |
| spelling | MacMillan, Lawrence G. Verfasser aut Options as a strategic investment study guide Lawrence G. McMillan 4. ed. New York, NY u.a. New York Inst. of Finance 2002 VIII, 161 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Options (Finance) HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=010309717&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | MacMillan, Lawrence G. Options as a strategic investment study guide Options (Finance) |
| title | Options as a strategic investment study guide |
| title_auth | Options as a strategic investment study guide |
| title_exact_search | Options as a strategic investment study guide |
| title_full | Options as a strategic investment study guide Lawrence G. McMillan |
| title_fullStr | Options as a strategic investment study guide Lawrence G. McMillan |
| title_full_unstemmed | Options as a strategic investment study guide Lawrence G. McMillan |
| title_short | Options as a strategic investment |
| title_sort | options as a strategic investment study guide |
| title_sub | study guide |
| topic | Options (Finance) |
| topic_facet | Options (Finance) |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=010309717&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT macmillanlawrenceg optionsasastrategicinvestmentstudyguide |