Getting Started in Options

Time values? Puts and calls? Striking prices? If options seem like foreign territory to you, you're not alone. Options have only been traded since the 1970s, so even seasoned investors can be daunted by them. But don't let their seeming complexity frighten you away from the potentially lucrative opportunities to be found in options investing. This straightforward guide thoroughly demystifies the options markets, helping you understand how they work, where they can fit into your personal financial picture, and how you can reap healthy returns from them. In nontechnical, easy-to-follow terms, this fourth edition arms you with the knowledge you need to make informed decisions about choosing stocks, tracking options, selling calls, and much more including how to utilize the many new online resources. You'll learn how to: set up a plan based on your specific investment requirements; master options terminology and concepts; read the market and spot the specific risks of each type of option; understand time values, striking price, and expiration and use them effectively; hedge and speculate like a seasoned pro; and use options as insurance against losses in stock investment. …