The market for listed options and other non-equity option products offers investors and traders an array of strategic opportunities to manage their investments effectively. In this thoroughly updated and revised Fifth Edition of the bestselling “Options as a Strategic Investment,” you will discover the latest market-tested tools to enhance the profit potential of your portfolio while mitigating downside risk, regardless of market conditions.
Within this updated edition, you’ll find a multitude of proven techniques and tried-and-tested tactics for investing in various innovative options products. Key highlights include:
– Strategies for buying and selling Long Term Equity Anticipation Securities (LEAPS)
– A comprehensive examination of neutral trading, its mechanics, and its potential to enhance overall profitability
– Detailed guidance on investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and hedging strategies using common and regular options
– A thorough overview of futures and futures options
Tailored for investors with some familiarity with the options market, this comprehensive guide also elucidates the concepts and applications of different option strategies—explaining how they function, their applicability in different scenarios, and their underlying rationale. Additionally, you’ll learn techniques for utilizing index options and futures to safeguard your portfolio and boost returns, as well as the implications of tax laws for option writers, including allowable long-term gains and losses.
Through detailed examples, exhibits, and checklists, this resource illustrates the efficacy of each strategy under carefully defined market conditions.