Option Prices Incorporate Fundamentals

Options are an investment vehicle that can enhance virtually any investment philosophy. Fundamentals of the Options Market provides a clear, concise picture of this global marketplace. Using examples drawn from contemporary financial news, this completely accessible guidebook describes why and how these versatile tools can be used to hedge risk and enhance return, while explaining popular products including listed stock options, index options, and LEAPS.

-Have you ever wished to know what does it take to be successful in your business and trading life? If yes, then keep reading!Looking for a fast and straightforward way to create a steady stream of revenue trading options? Then carry on Trading and investing options are growing at a record pace as interest among ordinary investors seeks quick and secure ways to improve their portfolios. Alternatives may be yours a new interest, but the concept behind options has been around for millennia.Many people understand stock holding, purchasing, and selling, and let's get going there. You can purchase or sell such shares, so depending on the number of shares you own, you can receive dividends. You own specific properties or stakes.An option is the possibility of buying stock from the company at a specified price and time, but not the obligation. In other words, if you want to, and don't want to, you should. You don't own any of the company's shares; however, you may.Options are rare in the financial trading sector. It's easy to understand buying and selling stock in a company, but trading is a bit more complicated. It's a bit difficult to work out how you can sell those shares before you purchase them, and even make a profit from the price drop. There's more to it than simple choices. Derivatives are a good example. It means you can buy things from other things by "deriving the value to them. For example, if you consider a potential contract, you will find that the cost of that contract increases as the market price underlies and varies. If this is the case, you will use the derivatives to function. Yet when it comes to option dealing, the concept is simplistic because it multiplies uncertainty. You can't look at the portfolio anymore and see, for example, the shares are going up from $51 to $57. So, this won't mean your income or loss is just 6 dollars of difference. You choose from the same stock of options, but you select an opportunity for a different price (50, 55, 60 cents, and so on); and you also choose a particular period to change the offer!Reading this fantastic book, you'll learn: -Introduction to Option Trading-Types of Option Spreads and Orders-Basic Option Strategies-Essential Steps for Effective Options Trading- Golden Rules for Trading Successfully-Developing A Trading Methodology-Tips to Become A Successful Trader-All of the above in one book. Isn't that exciting? If you desire to take control of your trading by developing all these qualities, then scroll up to the top right away, pop the "Buy Now" Button, and start reading how to become a master in trading and business.

We examine the incremental power of a large set of key fundamental, financial, and macroeconomic variables for forecasting the volatility of natural gas futures prices. Among other results, we find that the option implied volatility (IV) significantly improves the performance of predictions regarding the future volatility of the natural gas market. We also identify several fundamental and macroeconomic variables (e.g., open interests, default premiums, and the return of the housing index) which are statistically-significant in a predictive regression even after including the option implied volatility. On the other hand, we do not find a substantial increase in the adjusted-R2 of the predictive regressions (including IVs) after adding significant fundamental variables. The small incremental predictive power of fundamental variables is interpreted as a sign of the efficiency of the options market. We also observe that the adjusted-R2s of predictive regressions are higher when the time-to-maturity of the futures contract increases. Our results can help users of natural gas volatility forecasts (e.g., producers, utility companies, and portfolio managers) make better informed and more efficient operational and financial decisions.

Accompanying CD-ROM contains ... "DerivaGem Version 1.51"--CD-ROM label.

55% OFF for Bookstores! Discounted retail Price NOW at $23.95 instead of $34.95!! Options Trading For anyone who wants to get into options, the first foray into options trading strategy can be extremely confusing. The basic concepts of the options market are relatively simple for most people to grasp, but when it comes to options strategy, it's often a different story. The many different approaches to trading options can confuse just about anyone. Most people know that options can be either bought or sold. This is the most basic options trading strategy, but there are far more sophisticated ways to trade options. Traders who know the market well use spreads to reduce the cost of the investment while maximizing the profits they make. This means they combine transactions that work together to create a unified strategy by purchasing differing types of options on the same underlying asset. Basics options trading strategy follows the trend that when an asset's value is predicted to rise, a call option is purchased, and when it is expected to fall, a put option is a right choice. But because markets are volatile and predictions can be complicated to make with accuracy, it sometimes makes better sense to purchase both a call and a put on the same asset. With different strike prices and expiration dates, you can spread the odds of making a profit. What you will gain in this book; - What You Must Know to Master Options Trading - Advanced Options Trading Explained - Learn Options Trading - Option Strategy Basics - 5 Keys To Successful Options Trading - Options Trading Software - Why You Should Never Analyze Option Stocks Manually - Dangers of Options Trading - 5 Reasons Why Options Trading Is Better Than Stock Trading - Understanding The Importance Of Options Trading - And so on. A good options trading strategy means using the right combination of calls and puts at the right time to create a plan for profiting from the option in possible ways. Understanding when and how to use these transactions is what makes creating options trading strategy such a challenge; it requires a great deal of knowledge and understanding of both the options market and the assets involved. Choosing the best options trading strategy is difficult unless you know what you are doing. Weighing and considering all of the variables involved makes it more likely your policy will succeed. 55% OFF for Bookstores! Discounted retail Price NOW at $23.95 instead of $34.95!!

In "Basics of Option Trading," acclaimed author Sankar Srinivasan, a certified market professional of the National Stock Exchange of India, presents a comprehensive guide that demystifies the world of options trading. Whether you are a novice investor or an experienced trader looking to expand your knowledge, this book provides a solid foundation in understanding and leveraging options as powerful financial instruments. With a clear and concise writing style, Sankar Srinivasan unravels the complexities of options trading and introduces readers to the fundamental concepts and terminology. Starting from the ground up, you'll learn about the different types of options, the mechanics of option pricing, and the key factors influencing option values. The author's extensive experience in the financial industry shines through as he explains the various strategies and techniques employed by successful option traders. From covered calls and protective puts to vertical spreads and straddles, Sankar Srinivasan breaks down each strategy, highlighting their advantages and risks, and offers practical examples to illustrate their implementation. This book goes beyond theory by providing valuable insights into the real-world dynamics of option trading. You'll discover how to analyze market trends, identify profitable opportunities, and manage risk effectively. Sankar Srinivasan's expertise is complemented by his ability to convey complex ideas in a beginner-friendly manner, making this book an invaluable resource for traders of all levels. Whether your goal is to generate additional income, protect your investments, or enhance your trading strategies, this book equips you with the essential knowledge and skills to navigate the world of options trading with confidence. Master the art of options and unlock the potential for greater financial success.

Following is a chapter from the second edition of The Complete Guide to Option Selling, fully up to date and expanded to be useful in today's markets. It covers new strategies and new ways to approach selling options and futures so that you can continue to produce surprisingly consistent results with only slightly increased risk. This book remains the only guide that explores selling options exclusively, and is a cult favorite among the options-selling community.

Selling naked options, long considered profitable for professional traders but too risky for most investors, has been surging in popularity. The Complete Guide to Options Selling avoids dry, complex theory and jargon in favor of a simple, direct approach that sophisticated investors can use to produce surprisingly consistent results with only slightly increased risk. This down-to-earth book explains how to apply market fundamentals--while avoiding common options trading mistakes--to make options selling a profitable part of any portfolio strategy.

"Advamced Option Trading" is your go-to guide, perfect for both beginners and seasoned traders. This easy-to-understand book demystifies the complexities of options trading, offering practical strategies to boost your confidence in the market. We focus on simplicity, making sure you grasp crucial concepts like call options, put options, risk management, and technical analysis. Dive into a wealth of strategies suited for various market conditions—whether it's a bullish, bearish, or neutral outlook. Learn the ins and outs of buying calls and puts, selling covered calls, creating vertical spreads, and executing straddles and strangles. Our step-by-step instructions, paired with clear entry and exit points, empower you to maximize profits while effectively managing risk. Take your trading to the next level by incorporating technical and fundamental analysis. Uncover popular technical indicators, spot support and resistance levels, and analyze chart patterns. Evaluate company fundamentals, review financial statements, and leverage industry trends to make well-informed trading decisions. Recognizing the role of emotions and psychology in successful trading, our book offers valuable guidance on managing fear, greed, and maintaining discipline. Develop a resilient mindset to confidently navigate the challenges of options trading. Packed with real-life examples, case studies, and practical tips, "Advanced Option Trading" equips you with the tools, knowledge, and strategies needed for success. Whether you're a newcomer or an experienced trader, this book will elevate your options trading skills. Written by Sankar Srinivasan, a Certified Market Professional with over 20 years of experience at the National Stock Exchange of India.