Product Description
"Covered Calls and Naked Puts" is the second book by Ronald Groenke on the subject of making money by selling options. His first book was "The Money Tree: Risk Free Options Trading". A third book now available is "Cash for Life". All three books are written in novel format. The main character, Rob Graham, is a retired finance professor. He meets a former student on Marco Island, Florida and begins revealing his secrets about selling covered calls and naked puts. The reader learns along with the student how to select the right stocks in building a sound portfolio and then the best calls and puts to sell for a monthly income.
Customer Reviews:
Good Presentation of the Concept of Covered Calls and Naked Puts.......2007-08-30
Overall I would recommend this book if you are new to covered calls and naked puts and want to gain a basic understanding of how they work. While income can be generated selling options a good stock picking strategy is a must if you are going to be successful. With that said I wouldn't necessarily recommend the stock picking technique that is outlined in the book. I also found it extremely annoying that the author constantly plugged his software package.
annoying writing.......2007-08-12
The writing style detracts form the otherwise good explanation of what options are and the recommended techniques.
VERY HANDS ON AND INFORMATIVE.......2006-07-26
If you can get past the format of the book, which is a fictional tale of a retiired professor teaching a Florida community about option investing, and apprecite the actual easy to apply formulas he gives you, then this is a must read.
He goes over everything that made hom successful with "safe" option investing in full detail.
1. Stock selection
2. Naked put selection,
3. Acceptable rates of return for covered calls based on
expiration period.
These are all spelled out explicitly with the formulas to calculate every variable, along with his stock screening criteria which could be applied for free on any financial web-site.
I read some reviews that implied he wrote the book to sell software. I do not think that is the case, as he laid out his formulas so clearly, that anyone could apply them to an EXCEL spreadsheet, along with stock screening criteria. His willingness to give you the formulas and other variables required to succeed are unique to the investing, especially options education, industry.
FOr the money, there is no better value.
Conservative option.......2006-03-17
A good read..the story-line is cute if you dont take it too seriously...Its like reading a novel from a mathematician...it had some very good conservative ways of investing...very good for a novice/intermediate investor with options...
Don't waste your money.......2005-06-15
Please don't buy this book based on the title.
The book is 150 pages long and written (badly written) as a novel with only about 10 pages total devoted to options. Needless to say I'm sorely disappointed with this book.
Product Description
Finally a successful strategy to 1)Buy the right stocks at the right time, and 2)Generate a substantial monthly cash income by selling options - both calls and puts. Seminar participants strongly endorse this unique strategy. Find out now how you can beat the market and have cash income from your portfolio each month.
Customer Reviews:
Cheater!.......2007-02-17
Appears selling calls may have been to slow for the author. He's figured out that he can make more money and faster by selling books and software subscriptions. And, even more money selling the same book to you twice. "Cash for Life" is a ripoff of his previous work "Covered Calls and Naked Puts". With the exception of his "Visions" methodology, it is literally word for word. Is it ethical to plagiarize your own work? It's like a student turning in the same work to two different teachers. While he may have updated his options trading examples and added a new methodology, this "new book" (to use the term loosely) should have been released as an updated edition to the earlier book. At the least, it should have been disclosed in the book's promotion and on his website. Could he have possibly given a discount to a buyer that had also purchased "Covered Calls and Naked Puts"?
His earlier book, "Covered Calls and Naked Puts", was a fair primer in selling covered calls. So, why didn't the author take this opportunity to introduce his "Visions" in a more advanced book with a new storyline. It would have been nice to see deeper discussions his investment reasonings rather than just rely upon his mathematical models. Here are some ideas. A chapter on "alternatives to letting yourself get assigned" (ie. covering the call; rolling forward, upward or downward; or buying it back when it premium is well below its initial sale and there is still significant time left til expiration) would be worthwhile even if this isn't the author's trading style. Also, a chapter on the "tax implications of options" should be included since there are some pretty obscure tax rules out there; they have their own variations of what is considered short-term and long-term transactions. And, what about the "wash-sale rule"? Is this something the options investor/trader needs to consider? I'll let you field that one Ronald.
Informative but.......2007-02-12
This book is informative but you have to spend more money to use his software to be able to use his methods. At the end of it all you still have to know if a stock is going to go up or down in price. If anyone knew that then why complicated your investing with options and just buy the stock outright to make a profit. I also wonder why if this method is so good why would he want to share it and how does he have time for these seminars, software programming, etc? WOuldny he be busy selling options all day and making money? I assume he makes more money selling us his books, tools, and seminars.
Great book on how to get rich slow!.......2006-11-06
Mr. Groenke's book presents a very readable, step by step approach to learning about covered calls. He also provides some very good informaiton on how to pick the stocks that are good to hold while working with options. I recommend this book highly to those who are interested in adding wealth building potential without taking on additional risk.
Very, Very Basic.......2006-09-21
Intersting style of writing as previouse reviewer indicated and at the same time obviouse he had no idea of what an option was. For anyone with the slightest knowlege of options it becomes apparent that the main purpose of this book is to get one to purchase Mr Groenke's option software. With out it which he constantly referes to, his formulia's would result in endless hours of tedious calculations. After spending $29 on this book and finding it is really a primar for his software would be disapointing to anyone trying to get a basic understanding of how selling options works. His software may be great and worth the money but its a little misleading to promote this book as a stand alone. I'm not a reviewer, just someone that buys and mostly sells options and can't figure how anyone could give this 5 stars, or buy this book without understanding you really need his software to get any benifit from the book. That of course assumes your not a proffeser sitting in an office somwhere as opposed to really utilizing options.
Good Material and Easy Read.......2006-08-18
The book is easy to read and follow. The concepts and examples are complete and make it easy to understand. I enjoyed the story. It has peaked my interest and I am reading more books to get a better understanding on more option's trading strategies. I feel confindent I now understand some of the benefits of trading covered calls.
I hope to be implementing the process in the book in the next few months.
Many Thanks to Ron!
Book Description
For good reason, investors feel whiplashed by the markets of the past few years. They are looking for some sensible ways to bridge the gap between the consistency of fixed-return instruments and the upside potential of equities. New Insights on Covered Call Writing presents an investment approach that, although used by some traders for thirty years, is largely unknown or misunderstood by individual investors. This book shows how to use this powerful investment technique for success in today's and tomorrow's markets. Most of the professional texts on options devote no more than a cursory chapter to covered calls. Lehman and McMillan's ground-breaking book gives a complete guide to the increased control and lowered risk this technique offers active investors and traders, and will make covered call writing accessible to a broader range of the investing public.
Customer Reviews:
Good if you want to play this game.......2006-03-24
This book is an excellent primer on one of the safest form of the options game, at least from the perspective of the brokerage industry. So, if you're bored with watching your portfolio creep around at a few percent a day, you can write (sell) a call option for $100 on a $5000 investment (for example) and have a pretty good chance of keeping the 2% at the end of the month. Lehman and McMillan do an excellent job of providing return formulae and web resources for further research. But the question remains: do you really want to get into this? (I admit it's addictive). If you do you'll turn into your own stock churner. The brokerage fees aren't too bad if you use one of the discounters, but get ready to do some major capital gains calculations (profits from unexercised options are all short-term capital gains). Here's a hint: this is NOT the way Warren Buffet got rich.
Probably the Best Available on the Subject to Date........2005-09-23
I liked this book and would recommend it to those interested in covered call writing. There are a few things to keep in mind while reading this book:
1- McMillan is a very well established authority on option strategies, I remember reading his options books way back in 1984, when I was the local options specialist at Dean Witter. However, if you read his comments on covered call writing in his other books, he's much more guarded with his support than he is in this text.
2- Nowhere in the book do the authors discuss the extreme increase in time and especially paperwork that is required to successfully implement this strategy. I've always thought of managing an equity portfolio as investing (mostly passive), managing covered call positions is more like work (trading takes lots of time and effort to do it right). That's OK, call writing also reduces risk and gives you a lot more control, but be prepared to invest a lot of your time.
3- In my experience, most people really have a hard time with this strategy. Yes, it's easy to implement, but most dedicated options traders find this a bit too basic for their interests, and it ties up too much capital. Most equity investors have a hard time with the amount of work, loss of long-term capital gains impacts, tax reporting headaches and giving up some appreciation potential.
4- The 20 stock study described in the book is very misleading. For some reason the positions with 163 months of data show covered writing (CW) underperforming a buy-and-hold (B&H) strategy by about 700 basis points. I don't know if this is due to a flaw in the data or something to do with option premiums in the early years of the study. Data from comparing
CW returns to BH returns for periods less than 163 months show identical returns between the two strategies. This is consistent with results from more rigorous academic studies, which generally show underperformance of covered writing of 30 to 50 basis points. This is also consistent with my own experience. This makes sense, since covered writing is slightly to moderately less risky than buy-and-hold investing, the returns should be similar or slightly lower.
The people who usually succeed with covered call writing tend to be really good percentage thinkers, very organized at tracking and analyzing investment results, and good with the basic record keeping. Those who thrive at it really love it, but it's not for everyone.
I wish the book would have addressed these issues. Also, there is a lot more strategy involved in managing a covered write portfolio than was discussed in this book. To my mind, the subject was over-simplified here. I think the book also should have spent more time suggesting cash-backed put writing, which is the sister strategy (and has equivalent risk and returns) to covered call writing.
Still, it's a very good book, and one I recommend without hesitation. I'm a big advocate of covered call writing and cash-backed put writing for those who are willing to take the plunge.
I also highly recommend The Conservative Investor's Guide to Trading Options by Leroy Gross (with a forward also by Larry McMillan).
Good, but not much new..........2004-12-20
This book, despite the title, does not really bring any new insights into the science (art?) of covered call writing. This material has been discussed in many different publications in many different forms. Primarily, the book is concerned with test data that aims to prove that a portfolio with long stock/short calls will outperform a long-only portfolio over time. The actual mechanics of how to do this are missing. Regardless, the data is interesting, and the discussion is useful, especially if you are a novice option trader.
excellent discourse on covered call writing.......2004-04-27
an excellent guide to understanding covered call writing. as a retiree and never having written covered calls, i am convinced it is an opportunity for conservative investors offering potential returns competitive with stock ownership alone and better returns than those available on bonds. mr.lehman covers all aspects, from underlying stock selection, selecting good covered writes, web sites offering all sorts of data and even tax consequences as structured by IRS.
Good book but lacks the "how to".......2004-02-11
This is a good book if you already have a grasp of the basic concepts of covered call writing but are more interested in the details of why covered call writing works rather than how to use the concept to make money. The author spends a lot of time going through esoteric details on black scholes models and comparisons between the buy and hold and covered call strategy but little time is spent on providing real market examples on how to use the concepts in the book to make money. As an investor and trader my main purpose of reading any book is to learn the "how to" practical concepts that work in real market situations to enhance my profits and this is where this book is deficient. Furthermore this book does not get into the art of picking the right stocks and the timing criteria needed to decide when a covered call is a good strategy and when it is a losing one.
This book deserves at least 4 stars for explaining the covered call concept in great details and proving its usefulness. To make the best use of this book you need to couple it with one that will give more practical examples on using these concepts in real life situations in addition to strategies of picking the right stocks to write covered calls on and critical timing strategies. The book that worked best for me was the recently published September 2003 Second Edition "generate thousands on your stocks without selling them " By Elias. Elias's book has extensive real market examples with many innovative and profitable concepts.
Book Description
"COVERED CALL WRITING DEMYSTIFIED" is a timely and profitable tutorial investment program written as a novel, primarily for investors who have some knowledge of stock market investing but are new to covered call writing. It is the first work on this subject to simplify, fully explain, and instruct investors on how to use covered call option writing on common stocks. It may offer one of the best opportunities to achieve double-digit investment returns in the slow growth or no growth stock market expected by many experts in the future. This strategy works best in such a market environment. The investment approach of writing covered call options on stocks, a more conservative investment strategy than just owning stocks alone, has been available for decades. Until now, however, it has mostly been unknown or misunderstood by many investors.
Why is "COVERED CALL WRITING DEMYSTIFIED" needed? Many nationally recognized investment experts believe that the U.S. stock market in the future will most certainly produce significantly lower returns than the high returns of the past for many years to come. Some noteworthy examples:
* "The long-term prospects for equities in general is far from exciting." - Warren E. Buffett, The Chairman's Letter, Berkshire Hathaway, Inc. 2000 Annual Report, Page 3. "If you own equities, over the next twenty or thirty years you'll get a reasonable return…maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment." - Interview with Warren Buffett by Maria Bartiromo of CNBC TV; May 3, 2003
* "Over the next century you should expect your share prices to average 6% (return) a year. Over the next five years, ten years, I think you'll be lucky to come out even on share prices." - Sir John Templeton, pioneer in the mutual fund industry, Business Center, CNBC TV Interview; October 1, 2001
* "The Dow has gone absolutely nowhere for three, coming on four years now. I think this will last maybe for another ten years." - John Bollinger, noted technical analyst and creator of the "Bollinger Bands," CNBC TV Interview; October 29, 2001
"It's wise to have realistic expectations on the overall returns you can expect in the stock market, which over time should clock in at about 6% to 7%. The days of double-digit annual returns are probably over for some time to come." - Suze Orman, "The Financial Connection."
"COVERED CALL WRITING DEMYSTIFIED" is unique because:
(1) A detailed investment program is outlined for personal implementation to assist investors in achieving consistent double-digit returns utilizing covered call writing on common stocks. This investment strategy is most effective in a slow growth or no growth stock market, as is projected in the future by so many investment experts.
(2) The entire subject matter is centered on a focused area of standardized options...covered call writing on stocks an investor owns or acquires in the future.
(3) A complete education on the subject is provided.
(4) Unlike other books about options, it is easy to understand by any investor. The book is written as a novel, which increases reader interest and ease of comprehension.
(5) Numerous easy-to-use Microsoft® Excel templates on a CD/ROM for PC use as well as manual worksheets are provided with the book to assist in making specific investment decisions regarding which covered calls to write on stocks, to effectively track results, and for other planning purposes.
(6) Practical application exercises are included at the end of the chapters to personalize the information provided and assist with profitable planning and execution.
Customer Reviews:
Not worth the money.......2004-01-11
I generally will not trash a book that is targeted at the novice but this will be an exception. First, I am a novice at options investing so should have been right in the middle of the target market for this book. Fact is, I learned more just searching the Internet while I was waiting for the book to arrive than I learned from the book. It is just too simplistic. All the knowledge contained in this book could have been conveyed in a 20 page pamphlet rather than this 300+ page puff piece with its wide margins and large fonts. A true disappointment.
waste money and time.......2003-09-13
Too simple. Explain simple points in length boring stories. It wastes my money and time.
Low risk strategy only with the right timing tools.......2003-09-07
I am a professional trader, in other words I have been making a living exclusively trading stocks and options for the past few years.
My experience has been that covered call strategy is low risk only if you have the right timing techniques to alert you to reversals. Unfortunately this book lacks in that area.
Let us take the example where you get a $1 premium on a $20 stock by selling a covered call say at a $20 strike. It is true that if the stock declines to $15 you lose $4. If on the other hand you had the timing techniques that could alert you to a reversal , you should have bought the $20 strike call back with say the stock at $19 for $0.25 making a $0.75 profit and sold a $15 strike call for $4+ which you can then close for a profit when the stock goes to $15. Waiting for the option to expire is not always the right strategy. The issue is how can you tell if there is a pending reversal and this is where timing is critical . Using these strategies you can indeed achieve double digit returns just by taking advantage of the stock short term movements.
While this book is a good introduction;to get the most benefit from this book you need to supplement it with another that focuses more on timing.
Too much emphasis on Return, not enough on Risk.......2003-09-02
This book is a good overview of covered calls for investors new to this strategy; one of the best I have seen. However, the book discusses primarily return, and minimizes discussion of risk, which I believe is a disservice to new covered call writers. Covered call writing is NOT a low risk strategy. It is LOWER risk (i.e., lower than simply owning stocks), but it is not LOW risk, and there is no guarantee of achieving the double digit returns which are advertised as being presumably easy to attain. Covered call writers still assume ALL the risk of owning stocks, less the call premiums received.
For example, it is very easy to view a $1 premium on a $20 stock as a +5% return when the transaction is initiated. But if the stock declines to $15 upon expiration, the total return is actually -$4 (-20%), which would wipe out several months of gains from other successful covered writes. This outcome is a very real possibility, even though in this book there is little discussion of this outcome or what to do about it, or, better yet, how to prevent it.
Another good book on Covered Calls is "New Insights on Covered Call Writing", which more thoroughly explains the risks involved with a covered write investment program.
As with any investment strategy, it is best to (1) learn as much as possible, (2) make sure both reward and risk are understood, and (3) practice on paper before jumping in with real funds. Toward this end, I found both books very helpful.
DON'T MISS THIS IF YOU ARE NEW TO CALL WRITING.......2003-08-13
This book has gotten a bum rap from a couple of people who consider themselves experienced covered call writers. Didn't they read in the book description that this book is designed for people that are new to this discipline? That's what I was until I read two of Kadavy's books on covered call writing. They are a lifesaver. So don't be misled. If you are an expert at this already, you probably don't need this book. But if you are new to the subject and want a detailed program for how to do it and make steady solid investment returns, this is the one.
Book Description
"Covered Call Writing With Qs And Diamonds: Double-Digit Returns on Ready-Made Portfolios" is not just another new book about covered call writing. It is a highly focused and readily understandable educational tool with a unique easy-to-follow implementation program. It is designed for investors who either do not have the time or the desire to research individual stocks and administer such a portfolio, yet who seek an opportunity to achieve double-digit investment returns by using covered call writing.
Ownership of the ready-made portfolios available to you with the Qs (ticker symbol QQQ: the 100 largest companies on the Nasdaq) and Diamonds (ticker symbol DIA: the stocks composing the Dow Jones Industrial Average) eliminate the need for stock research. And, the call writing choices you have available to you with them are far broader than any individual stocks, making them the perfect equity investment to use in conjunction with covered call writing. The book delves deeply into the subject of how to obtain double-digit returns from both out-of-the-money calls and in-the-money calls. It also provides short-term technical analysis tools to assist in guiding market forecasts and making appropriate call writing decisions.
On May 3, 2003 after the annual meeting of his company, Warren Buffett (Chairman of Berkshire Hathaway) said to Maria Bartiromo of CNBC: "If you own equities, over the next twenty or thirty years you'll get a reasonable return...maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment." If you believe that "The Oracle of Omaha" is right about a slow-growth market for decades to come, then everything that you need as an investor is here for you in this book to develop and implement a covered call writing program using two of the world's most liquid, highly diversified equity portfolios.
THE BOOK PROVIDES:
* The case for using the Nasdaq-100 Index Tracking Stock (tracks the top 100 Nasdaq stocks in market capitalization), also known as the "Qs" or "Cubes," and the Diamonds Trust Series 1 (tracks the Dow Jones Industrial Average), known simply as Diamonds, for total or substantial portfolio composition. This allows investors to achieve significantly more equity ownership diversification than from shares in individual stocks. * Details on the unique features of these two highly liquid and popular Exchange Traded Funds (ETFs) that make them ideally suitable for no hassle, easy decision covered call writing to assist in reaching consistent double-digit investment returns in a more conservative way than a buy-and-hold equity strategy.
* A detailed turnkey implementation program for call writing with the QQQ and DIA, including "out-of-the-money" calls and "in-the-money" calls, both of which can yield solid double-digit returns, when and how to effectively use them.
* Discussion on call expiration date selection to fit your needs, including the advantages of shorter-term and longer-term expirations.
* A presentation of technical analysis tools to assist investors in making short-term decisions on when to write calls, and which type of call to write.
* Use of Microsoft® Excel spreadsheets to assist in reviewing covered call writing selection alternatives and tracking your results so that the best decisions for you are reached to achieve your investment return goal.
* Use of margin, if appropriate for you, to potentially almost double the returns from covered call writing on these ready-made portfolios.
* Details about brokerage accounts, with special emphasis on the use of online discount brokerages for quick, very low cost execution of trades. Web sites for brokerages, charting sources and other technical information are provided.
* Presentation of the tax information you need to understand and administer the income tax aspects of covered call writing. This includes deferring taxation of income until a later tax year while enjoying the use of the income now.
With interest rates so low and a scarcity of acceptable investment alternatives available to investors, covered call writing on diversified portfolios such as the Qs and Diamonds may offer one of the best possible opportunities to achieve double-digit investment returns in the slow-growth market we seem sure to encounter ahead.
Customer Reviews:
The 12% Problem.......2007-02-13
If you want to find out how to take 12% out of the market in cash per year, this book is for you. It's clear, concise and comes with instructions on how to create P/L templates on Excel. In addition, they'll send everything you need to get started on Excel in your email for free. The book set-up moves from simple on to complicated, lots of graphs and plenty of examples. My problem, which may be not a problem for others, is that pesky 12& gain per year. If you've got plenty of investible capital, that might be enough. But, if you don't, it isn't. For me, an annual return of 12% just isn't enough when you figure in your time and trading fees and the fact that you're essentially selling covered calls on the underlying Qs and Diamonds. On the other hand, Kadavy states up front that this is a 'conservative' approach to using options. The best thing about this approach is that you no longer have to chose from the confusing universe of optionable securities, all you use here are QQQQ and DIA. Simple and conservative.
Loving it........2007-01-11
It was a my husband's favorite Christmas present. This is his favorite strategy - he has really been enjoying the book. He says all you need is a minimum of one thing you didn't know to catapult you farther - this had many more than one! Thanks.
Covered Call Writing with Qs and Diamonds.......2006-11-10
A primer on options, having little to do with Qs, Diamonds, other than that is the vehicle. Not sure you need to buy book to see benefit of diversification in underlying asset -all other risk aspects remain the same.
VERY USEFUL & PROFITABLE BOOK.......2004-01-05
A friend of mine who took a college class about covered call writing taught by the author recommended this book. It was a real eye opener for me, as I hadn't had any exposure to covered calls before as is probably true of most people. I have enough assets to comfortably invest in the stock market, but not enough to diversify adequately through individual stocks. The discussion about the Nasdaq-100 Index Tracking Stock (QQQ) and the Diamonds-Dow Jones Average Tracking Stock (DIA)solved this problem for me. At a time when I have no confidence in mutual funds, I was able to use these two Exchange Traded Funds as the foundation for my investment portfolio. They ideally suit my risk profile. The ability to write covered calls on them was icing on the cake. I've written two sets of calls so far, so now I can appreciate the simple beauty of this investment strategy through firsthand experience. It worked out great. I also plan to study the chapter on technical analysis in more detail to help plan timing decisions in the future on whether to write out-of-the-money or in-the-money covered calls. Fortunately the book does an excellent job of making all of this completely intelligible for an investor at any level of understanding about the markets. The covered call feature creates an immediate stream of income and provides protection in case of a downturn in the market. I highly recommend this book for any investor who is looking for a better way to achieve investment goals rather than just owning mutual funds or stocks alone. Owning the Qs and Diamonds is a great way to participate in the stock market and get instant diversification through one or two securities. Also, the income from covered call writing is just what I needed to supplement my other income sources.
Book Description
"Put Option Writing Demystified" is the only book devoted exclusively to the subject of generating double-digit income returns from a little-known, often misunderstood and conservative investment opportunity known as "put option writing." In fact, it can be more conservative than simply owning stocks alone. And the good news is that this strategy works best during slow growth, flat or even slightly declining markets.
This book fully stands on its own merits, but it can also be viewed as a companion text to "Covered Call Writing Demystified" (see the book description on Amazon.com for more information). Hence the similarity in name. These are the reasons:
* Put option writing and covered call writing have essentially the same reward and risk characteristics…When used as outlined in the book, they are very conservative (unlike other uses of options)
* Investors using covered call writing will find opportunities to use put option writing to achieve similar double-digit investment results, but also to have the opportunity to purchase stocks or Exchange Traded Funds at a discount from their present value.
* The put option writing and covered call writing strategies can both be used within the same portfolio to achieve similar results by differing means, depending on the investor's objectives regarding the individual stock or ETF in question.
What is put option writing?
Have you been tempted at times to buy a particular stock, but decided not to take the plunge because you thought it might be overpriced…or, just on a hunch, you thought you might be able to pick up the shares at a lower price? Not only might it be possible for you to buy that stock for less, but what if someone were willing to pay you cash today at a double-digit return rate and also give you the opportunity to buy it at a lower price later? Does that sound too good to be true? It's not. It's called "put option writing," and it's available to you on literally thousands of stocks and Exchange Traded Funds (ETFs). Put option writing can be compared with placing a limit order to buy the stock or ETF of your choice at a lower price that you set…and then being paid for it. And, you get paid whether the stock falls to your price or not!
"Put Option Writing Demystified" is totally focused on providing (1) the education you need to fully understand the concepts behind put option writing and (2) a unique easy-to-follow program so that you can implement the strategy yourself without the help of a full-service broker or investment manager.
The book delves deeply into the subject of how to obtain double-digit returns from both out-of-the-money puts and in-the-money puts, with out-of-the money puts being the principal recommended strategy both for realizing the opportunity to achieve consistent double-digit investment returns while you wait to acquire stocks or ETFs of your choice at a discount to their present market value. It also provides short-term technical analysis tools to assist in guiding market forecasts and making even more profitable put writing decisions.
On May 3, 2003 after the annual meeting of his company, Warren Buffett (Chairman of Berkshire Hathaway) said to Maria Bartiromo of CNBC: "If you own equities, over the next twenty or thirty years you'll get a reasonable return…maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment."
If you believe that "The Oracle of Omaha" is right about a slow-growth market for decades to come, then everything that you need as an investor is here for you in this book to develop and implement a put option writing program that will help you achieve double-digit returns.
In addition to presenting everything you need to know about put option writing and how to implement your own personal put writing program the book provides:
* Use of a uniquely designed Microsoft® Excel spreadsheet for put writing to assist in reviewing writing selection alternatives so that the best decisions for you are reached to achieve your investment return goal.
* Details about brokerage accounts, with special emphasis on the use of online discount brokerages for quick, very low cost execution of trades. Web sites for brokerages, charting sources and other technical information are provided.
* Tax information you need for understanding and administering the income tax aspects of put option writing. This includes the opportunity for deferring taxation of income until a later tax year while enjoying the use of the income now.
How will the baby boomers be able to generate sufficient income on their investments to enjoy a secure retirement? And how will they and others younger than them be able to create a sufficient asset base to provide for their financial security with the dire predictions for the long-term future that we cannot expect markets to perform anywhere near as well as they have in the past?
With interest rates so low and a scarcity of acceptable investment alternatives available to investors, put option writing, as well as covered call writing, may offer two of the best possible opportunities to achieve consistent double-digit investment returns in the slow-growth market we seem sure to encounter ahead.
Customer Reviews:
Misled.......2005-07-31
The title for this book is patently misleading. Introduction to put options would be more apprpriate; nothing is 'demystified'; granting different levels of experience in options trading if you know the difference between a put and a call save your money. As is the usual with these types of books half to two thirds of the book is devoted to explaining options.
Good Information /Book itself is poor quality.......2005-07-29
I ordered the book new, I found the data useful and assisted my in proving a point that i needed to prove. Highlighting and tabbing book caused ink to distort to the point of making the pages blank. Ink just falls off page. I expected better for the cost....
Great Book.......2004-03-03
Dear Author!
Just bought two books from Amazon, Put option writing and covered call writing. Thanks, your books are very useful, I will recommend to some of my friends about these wonderful books
Thanks again,
Readers
Kenny
A TRULY AMAZING INVESTMENT IDEA!.......2003-09-19
I would highly recommend this book to any stock investor who is looking for some new ideas to earn back the money they've lost in the bear market. Who ever heard of being paid immediate cash to wait to buy stocks at a lower price? That's what this book taught me to how to do. It sounds too good to be true, but I know it works because I've done it after reading the book. I wanted to buy the Nasdaq 100 Trust (QQQ) at a lower price. Instead of just waiting to see if it went lower, I wrote put contracts on the QQQ at my buy price using what I learned in the book. I collected $485 in cash in my brokerage account the next day. The stock didn't hit my price, so I didn't buy it the first month, but I got to keep the $485, which was a 24% return on an annual basis. The next month I did the same thing (collected $625 this time). My price was hit and I bought the QQQ shares for 15% less than the price when I started this. In the meantime I collected $1,110 while I waited to buy my shares for 15% less. This is explained so well that anyone can do it. Nobody I know seems to know about this. It's all in this book.
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Option Talk: Puts and Calls for the Series 7
Daniel M. Marrs
Manufacturer: Series 7 Specialists LLC
ProductGroup: Book
Binding: Perfect Paperback
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Series 7 Exam For Dummies (For Dummies (Career/Education))
ASIN: 0977446204
Release Date: 2005-10-19 |
Product Description
Option Talk shows how to successfully complete options questions prospective stockbrokers face on their licensing exam, the NASD Series 7. The book uses conversational tones as it covers options, step-by-step. Each idea is illustrated. Tools are developed which allow the Series 7 candidate to remove all guesswork in arriving at correct options test question answers. Although the book focuses on core competencies required to pass the licensing exam, its easy to read style will provide a potential options investor with a firm knowledge of how options strategies work and why. The book offers no timing or trading models, focusing instead on the characteristics, risks, potential returns, breakevens, applications, etc. of various strategies. Recommended for anyone who needs to take the Series 7, or for prospective options traders who want a better understanding of the core workings and parameters of listed options.
Book Description
This book provides a complete education and implementation program for investors who seek a realistic opportunity to achieve double- and even triple-digit annualized investment returns utilizing a strategy of writing uncovered puts and calls on individual stocks and Exchange Traded Funds (ETFs) without owning them and needing only one margin requirement for both the puts and the calls. It is designed for investors who have experience with covered call writing on individual stocks or ETFs, and preferably also with put option writing, and who are prepared to take greater risk to obtain greater returns.
For the option investor, the simultaneous writing of a put and a call option on the same security can provide a two-fold steady stream of cash income utilizing the same margin requirement if structured properly. It can also provide a chance to purchase desired shares of stock at a lower than current market price, if that is the investor's objective. This book will give you the theoretical and practical tools necessary to develop and implement an investment discipline that will provide the opportunity to achieve significant investment returns through writing uncovered put and call combinations on individual stocks and ETFs. Software templates using Excel are also provided for selecting option alternatives and calculating returns on investment.
For investors who have time to watch the market, who have the comfort that comes from knowledge and experience with other option writing strategies, and fully understand and are prepared to take additional investment risk, writing uncovered put and call option combinations offers the opportunity for very high returns at a time when the overall long-term outlook for investment returns, both equity and fixed income, seems to be below their historical averages.
Customer Reviews:
Interesting read!.......2007-05-27
Have written naked puts a number of times before and although you can loose your shirt quickly with this stratergy am comfortable with the logic behind it. Am not so comfortable with writing naked calls however. This book has got me considering it. As a read it is simple to understand and concise in it's detail of action to take in any situwation should things not turn out as planned,which I liked. I also liked the distinction between trading stocks and etf's and the possible benifits outlined from doing so. The fact it is written by an author with a banking background gives me confidence in his experience of useing the stratergies outlined to use money to make superior returns. Useful book.
All Options.......2006-03-11
I like to read Pauls books because they explain things in a simple and precise manner. I had no idea on understandind Options, but now I am very confident in what I am doing.
I can strongly recommend Pauls books for people starting out in the deritives market.
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Futures & Options: Strategy Guide
Chicago Mercantile Exchange
Manufacturer: Chicago Mercantile Exchange
ProductGroup: Book
Binding: Paperback
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ASIN: B000PB2H28 |
Product Description
Futures and options offer countless trading opportunities. The 21 strategies in this guide help make trading more understandable and ultimately more rewarding. This guide will help you determine your market outlook, your volatility outlook, assist you in looking uo the corresponding strategy and appropriate table, and help you determine the best strike price.
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Investing in Call Options
James A. Willson
Manufacturer: Praeger Publishers Inc.,U.S.
ProductGroup: Book
Binding: Hardcover
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ASIN: 0030594537 |
Books:
- Cultures and Organizations: Software of the Mind
- Currency Derivatives: Pricing Theory, Exotic Options, and Hedging Applications (Wiley Series in Financial Engineering)
- Currency Derivatives: Pricing Theory, Exotic Options, and Hedging Applications (Wiley Series in Financial Engineering)
- Deal Terms - The Finer Points of Venture Capital Deal Structures, Valuations, Term Sheets, Stock Options and Getting VC Deals Done (Inside the Minds)
- Disruption: Overturning Conventions and Shaking Up the Marketplace (Adweek Magazine Series)
- E-Commerce: Business, Technology, Society (3rd Edition)
- eBay Income: How Anyone of Any Age, Location, and/or Background Can Build a Highly Profitable Online Business with eBay
- Export/Import Procedures and Documentation (Export/Import Procedures & Documentation)
- Financial Risk Manager Handbook (Wiley Finance)
- Get Rich With Options: Four Winning Strategies Straight from the Exchange Floor (Agora Series)
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Covered Call Writing with Qs and Diamonds: Double-Digit Returns on Ready-Made Portfolios
New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing
Covered Call Writing With Exchange Traded Funds (ETFs): Double-Digit Returns, Diversification, Downside Protection
Put Option Writing Demystified: Earn Double-Digit Cash Returns While Waiting to Buy Stocks at a Discount
Cash for Life: Unlock the Incredible Monthly Cash Income in Your Stock Portfolio. Master the Art of Selling Covered Call and Naked Put Options At the Right Time on the Right Stocks
