Options Made Easy

Master option trading, visually, hands-on -- and discover the powerful, easy-to-use OVI indicator that leads the market, revealing what the world's savviest option traders are doing right now! Learn option trading from the newest edition of Guy Cohen's international best-seller Options Made Easy, which has earned a worldwide reputation for its simplicity, clarity and hands-on practicality. With outstanding graphics for step-by-step learning, this easy tutorial packed with real trades is designed to reinforce every new trader's learning experience. Using plain English and clear illustrations to explain each key trading strategy, Cohen avoids complex math while effortlessly delivering the practical knowledge traders need. Now, in this eagerly-anticipated Third Edition, Cohen updates all examples and data, utilizing the market's new option symbols throughout, and presenting a more streamlined, focused, and up-to-date review of relevant chart patterns and technical analyses. Most important, he thoroughly introduces his breakthrough OVI indicator, revealing how it captures the implications of actual option transaction data, and presents signals even beginners can use to earn consistent profits. Step by step, Cohen walks traders through: - Filtering for stocks and selecting the right strategy for each situation - Implementing proven strategies for income, including covered calls and bull put spreads - Trading volatility through straddles and strangles - Using butterflies and condors to trade rangebound markets - Understanding trading psychology and its impact on option trades - And much more

An innovator in financial trading, Guy Cohen is the creator and originator of the unique OVI Indicator, FlagTrader, and OptionEasy. He is the author of bestselling trading books Options Made Easy, The Bible of Options Strategies, and Volatile Markets Made Easy (FT Prentice Hall). Guy's new book, The Insider Edge (Wiley), was released in September 2012 and is focused on his OVI Indicator. His published work is complemented by pioneering breakthroughs in the areas of trading and technical indicators, specifically the OVI. Guy specializes in trading stock and options, with his hallmark being his user-friendly approach and liberal use of illustrations. With Guy, you will find proven techniques to succeed, complemented by industry-leading customer service. An established and entertaining speaker, Guy has an MBA (finance) from City University (Cass) Business School, London. Guy is also the author of Your Gut Feeling, which is a self-help autobiography that outlines his complete recovery from a severe case of ulcerative colitis. For more information about Guy's trading products, go to http://www.ovitradersclub.com.

Acknowledgements ix About the Author xi Executive Summary xii Preface xiii Chapter 1: Introduction to Options 1 Chapter 2: Into the Marketplace 27 Chapter 3: The Basics of Fundamental Analysis 47 Chapter 4: The Basics of Technical Analysis 81 Chapter 5: Two Popular Strategies and How to Improve Them 139 Chapter 6: An Introduction to the Greeks 165 Chapter 7: Bull Call Spreads and Bull Put Spreads 197 Chapter 8: Two Basic Volatility Strategies 219 Chapter 9: Two Basic Sideways Strategies 237 Chapter 10: Trading and Investing Psychology 261 Chapter 11: Putting It All Together--A Call to Action 277 Chapter 12: Trading with the OVI 287 Appendix I: Strategy Table 313 Appendix II: Glossary 325 References and Recommended Reading 339 Index 341