Jacket Description:
Avoiding Option Trading Traps
* What to Look For
* Strategies for Success
with Larry McMillan
“I was right – but I’m still losing money.” Sound familiar? Frustrations abound in the options arena. Learning what to expect, and how to react, are the real keys to option trading success. Now, renowned author and “Trader’s Hall of Famer” Larry McMillan shows you how to avoid the 5 most common – and costly – mistakes option traders make.
Benefit from the guidance of this options guru, as he highlights the 5 major problem areas traders frequently fall victim to. McMillan shows you what to do in typical tough spots – and how to avoid them in the future. Master his methods for …
- Using put-call ratios as a critical timing tool
- Picking the right option for your trading style & goals
- Deciding how many dollars to risk
- Determining the correct number of options to buy
- Creating a scenario for covered call writing play
Not a “how to trade” course – this (more…)

One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to reflect the most current developments and trends in option products and trading strategies. Featuring: Pricing models Volatility considerations Basic and advanced trading strategies Risk management techniques And more! Written in a clear, easy-to-understand fashion, Option Volatility & Pricing points out the key concepts essential to successful trading. Drawing on his experience as a professional trader, author Sheldon Natenberg examines both the theory and reality of option trading. He presents the foundations of option theory explaining how this theory can be used to identify and exploit trading opportunities. Option Volatility & Pricing teaches you to use a wide variety of trading strategies and shows you how to select the strategy that best fits your view of market conditions and individual risk tolerance. New s (more…)

This may sound like you are getting rather a lot, but believe me, it is all vital for giving you the world class education that you need to trade stock options. As a step by step guide, the Option Profits Success System will get you to the desired place where you know, in detail, more about trading stock options then the majority of other traders out there. This home study course will put you well on course to a successful and long term career in stock option trading – Guaranteed!

One major difference between trading stock indexes or stocks (on the one hand) and the Commodities (on the other) is that stock and stock index trading is largely driven by emotion, while trading in Commodities is mostly driven by the law of supply and demand.  This, in turn, depends upon weather patterns, rainfall, carryover of last year’s harvest, amount of acreage planted, animal fertility levels, availability of labor and transportation, variations in worldwide usage, and general economic conditions.

Since emotional (or psychological) input has much less applicability to Commodities trading than it does to stock trading, it follows that we can more accurately predict the future course of Commodities prices.  We can learn to interpret the patterns of the up-and-down waves of prices and of certain Indicators which we read together with price information in order to quite closely forecast what prices will do in the future – especially in the immediate future, such as tomorrow morning.

Whether we think prices will go up – or go down – doesn’t make any difference.  We can place our bet either way.

All of us have heard horror stories about a load of wheat being unceremoniously dumped in the trader’s front yard.  That could happen, but you’d really have to work at it.  A little common sense and attention should serve to keep you away from that risk.  And, if you stick to buying options and avoid getting involved in contracts, at least while you learn the business, it could never happen.  The beauty of buying options is that you hold all the cards.  You put your money on the table and all the cards are yours.  At the same time, the absolute limit of your risk is the amount which you paid for the option.  You have the right, but not the obligation, to perform.  The party who has sold you the option has all of the risk.

Here’s the really great aspect of Commodity trading: Even before you begin to think about committing real dollars, you can reduce your investment risk to zero by paper-trading to your heart’s content while you learn the ropes.  What a concept!  Learn something new and fascinating without risking even a nickel.

And, truly, this is a fascinating world.  It is immensely satisfying to place a bet on the direction of a Commodity’s price – even a paper bet! – and have it go your way.

This should not be done haphazardly.  We know that prices move in waves; that the waves move in patterns; and that the patterns are repetitive and roughly predictable in size and direction as time progresses.  We do not simply stick a wet thumb in the air and guess at it; we make our moves with a basic understanding of Candlestick price patterns and of the various Indicators which throw off clues regarding the next likely direction of prices.  So, it’s not guesswork at all.  We deal in probabilities, with knowledge of these helping hands right there in the forefront guiding us to decisions that make sense.  It’s a gathering-in of all of the evidence before the investment decision is made.

Over many years, I have found that trading Commodities is truly an enjoyable intellectual exercise that, when done conservatively and smartly, can be a real moneymaker, at a level or risk which is strictly controllable by the trader.

The CBOE’s top options trainer, James Bittman, introduces first-timers and fledgling traders to the exciting options arena. Bittman explains in concise, step-by-step terms exactly how options work, providing clear explanations and examples of the most common – and valuable – option strategies. You’ll discover how to develop a solid options trading plan – and tailor it to your own goals and risk limitations. Learn what it takes to start trading options profitably with the critical “two D’s” — discipline and decision making. Other revealing insights include the 3 key steps to any successful options investment and learning to “think” like an options investor. With Bittman’s basic strategies, this comprehensive video-and its complete online support materials – your entry into the options market will be far more focused and effective.

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