Options Made Easy By: Guy Cohen
So you want to trade options but you’re more of an equity type guy? Well options Made Easy by Guy Cohen is made up of 12 chapters, each ones introducing and explaining the fundamentals of option trading. The 1st chapter begins by covering the basics, how to read and understand simple charts and diagrams. These are very useful when it comes to the evaluation of the potential gains and loss of an option. The 2nd chapter gives information about how the market for options works.
The 3rd and 4th chapters compare the two most common types of equity analysis: Fundamental and Technical analysis. The 5th, 7th, 8th and 9th chapters give us examples of option strategies. Understanding and using them correctly is required to do any income with options The 6th chapter will introduce the notion of statistical tools for the valuation of an option. The “Greeks” are very useful when an investor has to manage the risk of a portfolio with many simultaneous positions. Those who are not very good in math may find it hard to follow this discussion but the author would be remiss not to include it.
The 10th chapter explains the psychological aspects of trading. This is basically the common wisdom that an investor should never be guided by emotions. The 11th chapter helps the reader to create their own trading plan. This chapter help the reader use what they have read in the book to create something that they can implement. The 12 and last chapter introduces the notion of stock futures and the impacts it might have on stock and option traders.
This is a good book for a beginner and offers a great introduction to creating your own options trading system. Consider pairing this book with Fundamentals of the Options Market or A Complete Guide to Technical Trading Tactics for a great introduction to the topic of trading options.
Categories:
Introduction,
Options