The listed options are currently the only growing exchange traded financial product in the developed markets, with a current average volume of 20 million contracts—equivalent to 2 billion shares—per day. Now is the perfect opportunity to fortify your finances, and The Options Edge + Free Trial gives you the understanding and practical tools you need to optimize your portfolio today.
Numerous studies have indicated that incorporating options into an investment portfolio will deliver superior risk-adjusted returns over time. Whether improving yield, hedging concentrated positions and portfolios, or placing tactical directional bets, options have utility wherever non-linear payoffs are desired. Options can also inform investors regarding the market’s expectations for future volatility, changes in dividends and even the efficacy of diversifying an equity portfolio (correlation risk). These are among the many reasons that options volumes have grown so sharply among retail investors over the past 15 years even as equity volumes have stagnated over the same time frame. Michael Khouw & Mark Guthner discuss simple techniques many institutional traders and money managers use that can be successfully employed in portfolios of any size.
Most investors buy and sell options every day without ever knowing it. This book relates stories of those who have leveraged options to make fortunes and those who have lost by not understanding the optionality of their financial endeavors. You must know the fundamentals of options, and then learn to recognize hidden options, in order to improve success in all of your investment activities. After taking these steps, you can go on to:
- Create hidden options at little or no cost
- Structure your finances to reduce risk and increase wealth
- Utilize a practical pricing model for smarter investing
Buying and selling traditional investments often entails instruments with optionality. Sometimes this optionality is explicit, while other times it is hidden. If you’re not leveraging these embedded options to their fullest advantage, you’re losing money. Most retail investors don’t truly understand the nuances involved in successful options trading and instead rely on more comfortable instruments with fewer complex mechanics.
- If you’re interested in optimizing your portfolio, it’s time to step out of your comfort zone and learn what you’ve been missing. This book gives you the background you need to take full advantage of options in this booming market.
- The companion website features easy to use analytical tools that help investors find the best opportunities so you can start applying these methods right away.
- Whether or not you ultimately decide to start actively trading options, the concepts discussed will make you a better all-around trader with greater security in your financial affairs.
After your read this book, you might ask yourself, now what? Self directed investors and professional investors alike, need methods for success and systems to automate the process.
We want to do more to aid in your success. We have teamed up with the folks at OptionsPlay. OptionsPlay is a cutting edge FinTech firm who has married the best elements of technical and fundamental analysis with options analytics to build a very intuitive easy to use decision support system. To get you started, you can get a free trial to their service. Should you like it and wish to subscribe, OptionsPlay will credit you for the cost of our book. This is a win-win for everyone.
Pg 22: should read Simple Moneynesss = K/S x100
Pg 189: should read “investors buy 167 spreads…”