OPTIONS TRADING The Simplified Beginner’s Guide to Options Trading Second Edition Contents ACCESS YOUR FREE DIGITAL ASSETS INTRODUCTION | 1 | OPTION BASICS What are Options? What are Stocks? Options in the Stock Market The Broker The Market Maker The Options Clearing Corporation Options Industry Council Why Were Options Such a Hit? Options vs. Stocks | 2 | TRADING FUNDAMENTALS Calls and Puts—What’s in a Name? Buying a Call Option on Exxon Selling a Call Option on Disney™ Buying a Put Option on General Electric™ Selling a Put Option on McDonalds™ | 3 | A SOUND STRATEGY FOR A BEGINNER Selling the Covered Call Dumping DuPont In the Money (ITM) or Out of the Money (OTM) Disclaimer Avoid these Beginner Mistakes Practice Makes Perfect | 4 | KEY INFLUENCERS ON OPTIONS PRICES Why You Should Care About How Options Are Priced The Moneyness Factor Time Value & Time Decay Volatility Interest Rates & Dividends | 5 | WIN AT OPTIONS BY SPEAKING GREEK Delta Gamma Theta Vega Rho | 6 | POPULAR OPTIONS STRATEGIES Straddling a Stock Using Options The Strangle A Bull (or Bear) Spread Rolling Positions CONCLUSION GLOSSARY ABOUT CLYDEBANK Terms displayed in bold italic can be found defined in the glossary BEFORE YOU START READING, DOWNLOAD YOUR FREE DIGITAL ASSETS! Visit the URL below to access your free Digital Asset files that are included with the purchase of this book. DOWNLOAD YOURS HERE: www.clydebankmedia.com/options-assets Introduction