Options for Volatile Markets : Managing Volatility and Protecting Against Catastrophic Risk.

Options for Volatile Markets : Managing Volatility and Protecting Against Catastrophic Risk.

Practical option strategies for the new post-crisis financial market Traditional buy-and-hold investing has been seriously challenged in the wake of the recent financial crisis. With economic and market uncertainty at a very high level, options are still the most effective tool available for managin...

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Bibliographic Details
Main Author: Lehman, Richard
Other Authors: McMillan, L. G. (Lawrence G.)
Format: eBook
Language:English
Published: New York : John Wiley & Sons, 2011.
Edition:2nd ed.
Series:Bloomberg Financial.
Subjects:
Stock options.
Investments.
Investments
Stock options
Online Access:Click for online access
Table of Contents:
  • OPTIONS FORVOLATILEMARKETS; Contents; Preface; INTRODUCTION The "New Normal" in Equity Investing; CHAPTER 1 Option Basics; What Are Options?; Exercise and Assignment; Positions; How Options Are Traded; Options in Your Account; CHAPTER 2 Option Pricing and Valuation; Option Premium; Theoretical Value; Time Value; Volatility; Interest Rates; Dividends; Calls versus Puts; Option Skews and Anomalies; CHAPTER 3 The Basics of Covered Call Writing; Requirements for "Valid" Covered Writes; Risk/Reward of a Covered Write; Calculating Potential Returns; Major Factors Affecting Call-Writing Returns.
  • Covered Writing as an Ongoing StrategySumming Up Covered Writing; CHAPTER 4 Implementing Covered Call Writing; Follow-Up Actions; Behavioral Issues; Differing Approaches; Selecting Calls to Write; Risks; Basic Tax Rules for Options; Summing Up Implementation; CHAPTER 5 Advanced Call-Writing Techniques; Writing Calls on "Hot" Stocks; Tax Deferral Strategies; Covered Writing on Margin; Covered Writing against Securities Other Than Stock; Partial Writing, Mixed Writing, and Ratio Writing; Put Writing; Expiration Games; Option-Stock Arbitrage; CHAPTER 6 Basic Put Hedging; Put Hedge Basics.
  • AdvantagesDisadvantages; Behavioral Implications; Put Hedge versus Covered Call; Hedging against Catastrophic Risk; CHAPTER 7 Advanced Hedging Strategies; Put Hedge Follow-Ups; Using Put Spreads to Hedge; Collars; Conclusions on Protective Option Strategies; CHAPTER 8 Options on ETFs; ETFs in a Nutshell; ETF Options; Covered Call Writing on ETFs; Our Put Hedge and Collar Study on SPY; Appendix: Partial List of ETFs with Listed Options; CHAPTER 9 Volatility and Volatility Derivatives; What Is Volatility?; Using VIX as a Market Indicator; Volatility Futures; Variance Futures.
  • The Behavior of VIX FuturesVIX Options; VIX Option Strategies; The Future; Acknowledgments; About the Authors; Index.

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