Tampa, FL (PRWEB) September 17, 2009
The growing popularity of selling options is undeniable, yet it remains one of the least understood concepts in the trading world. In this clear and engaging guide, author James Cordier will help investors enter the market with the confidence they need and enable them to generate profits with surprising consistency.
Now in its second edition, The Complete Guide to Option Selling is the only book that exclusively explores the strategy of selling (or writing) options. Since its original publication in 2004, much has changed in the world of options, and the authors have provided key updates. Investors will find all the information they need to start writing options profitably in equities, stock indexes and commodities, maximize returns, minimize risk, and even manage “black swan” events. McGraw-Hill; August 14, 2009, ISBN-10:0071622373
With more than 20 years experience in options trading, James Cordier answers the following questions:
How is The Complete Guide to Option Selling different from other books on option strategies? In the Complete Guide, James Cordier offers a single, specialized strategy that is often overlooked by the mainstream investor and yet, is a staple in the arsenal of professional traders.
Why should investors be using a “selling options” investment strategy? Option selling provides a high probability of success that is difficult, if not impossible, to achieve in any other investment. Cordier clearly illustrates how to take full advantage of this unique approach and make it a profitable, high yielding component of an overall portfolio.
What do investors need to know to get started selling options? Cordier covers the basic mechanics of how professionals sell time premium and how the individual investor can quickly and easily apply them in their own portfolios. He also covers many of the myths about option-writing and why they still circulate, keeping many would-be investors away from the strategy.
How do investors recognize a great option to sell? By focusing on deep out of the money options that the market will probably never reach. By knowing fundamentals. By knowing just enough (but not too much) about volatility. Selling options successfully is not as difficult as most people think.
How is the money made in an option selling strategy? It is estimated that approximately 80% of options held through expiration will expire worthless, in which case, the seller keeps the premium as profit. This means the odds of a successful trade for the option seller are good. In addition, the trader does not have to pick market direction. He simply lets time decay erode the value of the option.
What are the risks? Options can increase in value and losses can run if not checked. An effective risk management plan is essential. However, Cordier explains how the risks of selling options are often misunderstood and presents common sense solutions to minimizing risk.
About James Cordier
James Cordier is president and head portfolio manager of Liberty Trading Group, where he has managed assets for a global client base for the last decade. Cordier’s firm helps individual investors maximize the use of Option Selling in their portfolios. He is regularly quoted by national financial media including The Wall Street Journal, CNN Money, and Barrons Weekly. He is a regular guest analyst on CNBC, Bloomberg Television and Fox Business News.
More information is available at OptionSellers.com