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About this book

Options are the most powerful and important investment tools available for stock market investors and speculators. Options can be used in two fundamental ways: They can reduce or eliminate risk and can also create leverage for high-risk speculation. Unfortunately, new investors often create riskier situations than they intend to because they simply do not understand the hidden risks involved with options trading. If you are unaware of these risks, you are almost guaranteed to set up losing, or at least disappointing, trades.

For instance, many believe that the most you can lose on an option is your initial investment. Not true. Others believe that a covered call is a conservative investment. It is actually the second most speculative, if you make one particular - and common - mistake in setting up the investment. Do you only buy calls when you're bullish and puts when you're bearish? If so, you are making decisions based on only half of the necessary information.

Bill Johnson outlines the major traps that option investors unknowingly fall into and offers insightful tips on how to stack the odds in your favor for a winning option trade. Whether you are new to or experienced with options, An Investor's Guide to Understanding and Mastering Options Trading: Generating Steady Profits of 100% in a 10% World will explain beginning and advanced topics and lead you to an understanding that will better equip you to compete in today's complex market - while avoiding unnecessary risk.

About the Authors

Bill Johnson is the editor of 21st Century Options Education, a leading financial education Web site. An active trader for many years, Bill worked at two regional brokerage firms before being hired by a discount brokerage giant, where he worked in an active trader team as well as specialized technical and fundamental analysis teams. He worked rotations for trade support group, maintenance reports, risk assessment and initial public offerings. Bill was also active in training and was selected to write department manuals and teach the corresponding courses in economics, option strategies, pricing and hedging to advanced brokers. He received a Master's Degree in Economics and an M.B.A. from the University of Central Florida. He is also a Chartered Financial Analyst (CFA) Level II candidate and has authored several books including The Single-Stock Futures Revolution.

James DiGeorgia is the publisher of 21st Century Investor, a newsletter dedicated to profiting from advances in technology. An avid rare coin collector, he began buying and selling rare coins while still in high school. While still a teenager, James expanded his interests to precious metals, currencies, futures, stocks, and options. After earning a B.A. in Economics, James worked for the largest precious metals and numismatic companies in the world. Additionally, he became a fierce and tireless champion and advocate for individual investors.