Option Basics and Strategy
May 15, 2008
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John Forman - The Essentials of Trading author
I know a lot of people are interested in options and see the potential they offer in many ways. I also know that a lot of people don’t really understand them, or think them too complicated. I’ve used options in a very simple, very basic way for several years now, though. It’s easier than you might have been led to believe.
Last year I put together a video titled Easy Stock Option Trading which goes through the basics of the option market. It also specifically outlines my own strategy for using them in the stock market for outright directional plays - particularly ones that having holding periods of days or longer. It runs about 40 minutes in length with about an even split between introduction and the specifics of how I use options for my directional plays.
Yes, the video focuses on stocks, but really the material is general enough that it really could be applied to any market.
This video has just kind of been hanging around. It occured to me that it might be something of real value to a lot of people, and something that could be part of the fund raising effort I’ve talked about of late. So I’d like to offer it to you in exchange for a small donation of $35.
Like I said, the video tackles the very basics of options from definitions and terminology to how they are priced (in simple terms). It then goes in detail into how I use them in a very straightforward and basic fashion to make my directional trades in the stock market (I hardly ever play the stocks themselves anymore).
Oh, and I’ve got an hour-long audio from a call I did which covers the same basic material plus has a Q&A session. You may find the different format and question answers useful.
The video is in WMV format, which most common digital video players will present. The audio is an MP3, which can be listened to with any digital audio player. They are bundled together in a ZIP file (about 29mb) for quicker download.
And of course it all comes with my commitment to answer any questions you might have on the material.
I’m thinking I could get more than $35 for this stuff, but it’s for a good cause so I’m not going to worry about that for now.
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