If you’re looking for a book that will make options trading easy to understand, you should read Options Trading Made Easy by Guy Cohen. The book starts with the basics of options and gradually builds up to more complex concepts. Cohen does a great job of explaining everything in simple terms, without losing any of the important details. After reading this book, you’ll have a good foundation on which to start trading options.
Overview:
Title: Options Made Easy: Your Guide to Profitable Trading, Third Edition
Author: Guy Cohen
Release Date: April 2013
Publisher: Pearson
What is the Options Trading Made Easy Book All About?
If you’re looking for a comprehensive guide to options trading, the Options Trading Made Easy book is a great place to start. This book covers everything from the basics of options trading to more advanced strategies while including helpful tips and resources along the way.
Whether you’re a beginner or a seasoned trader, this book can help you improve your skills and make better trades. If you’re new to options trading, you’ll learn about different types of options contracts, how to choose the right strike price, and how to manage risk. You’ll also get an introduction to technical analysis and charting, which can help you make more informed decisions about when to buy and sell.
If you’re an experienced trader, you’ll find useful information on more advanced strategies, such as spreads and straddles but this is one of the best options trading books for a beginner.
For more on this, subject you can see our list of the 10 best options trading books for beginners as well.
Who Is the Author of Options Trading Made Easy Book?
Guy Cohen is the author of Options Made Easy, which is a best-selling book on options trading. He is also the founder and CEO of Wise Traders, a successful options trading firm.
Guy has over 20 years of experience in the financial markets and is a highly respected authority on options trading. He has been featured in numerous financial publications, such as The Wall Street Journal, Barron’s, and Investor’s Business Daily.
Guy’s book, Options Made Easy, is considered to be one of the most comprehensive and easy-to-understand guides to options trading available. It covers everything from basic option strategies to more advanced techniques, and has helped countless people become successful traders.
If you’re looking to learn more about options trading, there’s no better person to turn to than Guy Cohen.
The Table of Contents – Chapters of Options Trading Made Easy
Chapter 1. Introduction to Options
- Criteria for Successful Investing
- Risk Profile Charts
- The Definition of an Option
- The Valuation of Options
- Intrinsic and Time Value for Calls
- Intrinsic and Time Value for Puts
- The Seven Factors that Influence an Option’s Premium
- Risk Profile Charts for Call Options
- Risk Profile Charts for Put Options
- Memory Tips for Long and Short Calls and Puts
- Basic Risk Profiles Summary
- Notation Standard for the Examples
- Chapter 1 Major Learning Points
Chapter 2. Into the Marketplace
- How to Read Option Prices
- Options Contracts
- Option Exchanges
- Option Expiration Dates
- Strike Prices
- Option Ticker Symbols
- Margin
- Placing Your Trade
- Types of Order in the Market
- Time Limits with Trade Orders
- Always Have a STOP in Mind Whenever You Make a Trade
- Trading Tips
- Leverage and Gearing
- A Brief Introduction to Delta (Hedge Ratio)
- Chapter 2 Major Learning Points
Chapter 3. The Basics of Fundamental Analysis
- Past History and Management
- News and Results
- Sentiment and Expectations
- The Wider Economy
- Economic Indicators to Watch (U.S. Only)
- Bonds
- Supply and Demand
- Corporate Fundamentals
- Key Financial Terms
- Key Financial Figures and Ratios
- Search Criteria and Screening Filters for Fundamentals
- Common Sense and Being Alert
- Chapter 3 Major Learning Points
Chapter 4. The Basics of Technical Analysis
- Three Ways to View Price Patterns
- Support and Resistance
- Double and Triple Tops and Bottoms
- Head and Shoulders
- Reverse Head and Shoulders
- Consolidation Patterns
- Fibonacci Retracements
- Elliott Wave
- Gann Levels
- Gaps
- Volume
- Technical Indicators
- Moving Averages
- Moving Average Convergence Divergence (MACD)
- Stochastics
- The Relative Strength Index (RSI)
- Different Time Frames
- More Technical Analysis Terminology
- The OVI
- Chapter 4 Major Learning Points
Chapter 5. Two Popular Strategies and How to Improve Them
- The Synthetic Call (Protective Put)
- The Covered Call (Covered Write or Buy Write)
- The Collar (or Protected Buy-Write)
- Chapter 5 Major Learning Points
- Chapter 6. An Introduction to the Greeks
- The Greeks
- Delta Δ
- Gamma Γ
- Theta θ
- Vega K (Also Known as Kappa or Lambda)
- Rho ρ
- Chapter 6 Major Learning Points
Chapter 7. Bull Call Spreads and Bull Put Spreads
- Bull Call Spreads
- Bull Put Spreads
- Advantages of Spread—A Summary
- Chapter 7 Major Learning Points
Chapter 8. Two Basic Volatility Strategies
- Straddles
- Strangles
- Chapter 8 Major Learning Points
Chapter 9. Two Basic Sideways Strategies
- Butterflies
- Condors
- Comparison Between the Butterfly and the Condor
- Chapter 9 Major Learning Points
Chapter 10. Trading and Investing Psychology
- Myths and Realities
- Tips and Good Habits
- Your Optimal Mindset
- Money Management and Rule Making
- Chapter 10 Major Learning Points
Chapter 11. Putting It All Together—A Call to Action
- Step 1—Choose Your Chart Pattern and Strategy
- Step 2—Set Your Plan
- Step 3—Execute the Plan
- Chapter 11 Major Learning Points
Chapter 12. Trading with the OVI
- What Is the OVI?
- The Ultimate OVI Setup
- The Trading Plan
- Summary of Outcomes
- Chapter 12 Major Learning Points
The Best Place to Buy The Options Trading Made Easy Book
Best of all, “Options Trading Made Easy” is available for purchase through the following stores:
Amazon
Pearson
Rakuten Kobo
How to Invest in Options According to Cohen
If you’re looking to invest in options, there are a few things you should keep in mind, according to Cohen. First, you need to have a clear understanding of what options are and how they work. Second, you need to be aware of the risks involved with investing in options. And third, you need to choose the right broker to execute your trades.
Options are a type of derivative security, which means that their value is derived from an underlying asset. The most common underlying assets for options are stocks, commodities, or currencies.
What is the Advantage of Reading the Options Trading Made Easy Book?
In today’s world, there are a lot of books that claim to offer easy options trading strategies. However, many of these books are nothing more than fluff and lack the substance that is needed to truly be successful in the world of options trading. The Options Trading Made Easy book is different. This book offers readers a solid foundation on which to build their options trading knowledge.
One of the most significant advantages of reading the Options Trading Made Easy book is that it teaches readers how to trade without using any indicators. That’s right, this book will show you how to find profitable trades by using price action alone. This is a huge advantage because it means that you won’t have to rely on lagging indicators that often give false signals. Another advantage of reading this book is that it covers a wide range of topics related to options trading.
Conclusion: Should You Read this Book?
Whether you are a newbie or a seasoned trader still looking a way to improv your trading skills, the answer is yes, you should consider Options Trading Made Easy. This book will teach you the ins and outs of options trading and is designed to be an easy read that features clear and concise explanations of many different options picking service & strategies.
In addition to this book, you may also want to look into signing up for an options trading advisory service. The best one we’ve found is TheEmpiricalCollective.
What is the Empirical Collective and How it Can Help Your Options Trading Journey?
An options advisory service provides recommendations on which options to buy or sell, and when to exercise them. Most services also offer educational resources to help clients learn about options trading and how to use their recommendations. Some even offer simulated trading platforms so clients can practice before risking real money.
The Empirical Collective service stands out from the crowd since it combines exceptional option trade alerts with specialized trading tools.
Empirical Collective only offers one level of membership (so you won’t be constantly inundated with upsells like so many other services) that gives you access to their trade alerts (which have an average return on investment of over 24% per trade and win rates as high as 95%) as well as their unique trading tools made to keep you one step ahead of the competition.
And when compared to the competition, the price of membership with them is incredibly affordable. (Right now they have a sale on, but it looks like pricing will increase very soon.)
Options advisory services can be helpful for investors who want to add options trading to their portfolio but don’t have the time or knowledge to do all of the research themselves. However, it’s important to choose a reputable service with a good track record like The Empirical Collective, as there are many scams in this industry.
Frequently Asked Questions
What is day trading options?
Day trading options can be a great way to make money in the stock market. However, it is important to understand what day trading options are and how it works before you start trading.
Day trading options involves buying and selling option contracts within the same day. This means that you will need to have a good understanding of how options work in order to make money from day trading them. There are two main types of options: call options and put options. Call options give the holder the right to buy the underlying asset at a certain price, while put options give the holder the right to sell the underlying asset at a certain price.
To make money from day trading options, you will need to correctly predict which way the price of the underlying asset will move. If you think that the price of the asset will go up, then you would buy a call option.
How to profit from options trading?
Here are a few tips to help you profit from options trading:
1. Know what you’re doing. Don’t just jump into options trading without doing your research and understanding how it works.
2. Be patient. Don’t expect to make huge profits overnight. Options trading takes time and patience to be successful.
3. Have realistic expectations. Don’t expect to double your money in a week through options trading. Slow and steady profits are the key to success in this game.
Follow these tips and you’ll be on your way to making profits from options trading in no time!
What is buying options?
In finance, buying an option gives you the right, but not the obligation, to buy an underlying asset at a set price within a specified time frame.
For example, say you purchase a call option on XYZ Corporation stock with a strike price of $50 and expiration date of March 15. This gives you the right to buy 100 shares of XYZ stock at $50 per share anytime between now and March 15. If, on March 15, XYZ stock is trading at $70 per share, you would exercise your option and make a profit of $2,000 (minus any fees associated with the purchase). If XYZ stock is trading at $49 per share on March 15, you wouldn’t exercise your option because you could buy the same shares for less money in the open market. And if this happened, you would lose the price you paid for the call contract.
What are the benefits of options investing?
Options investing can be used to hedge against risk, speculate on future market movements, or generate income. When used correctly, options can provide investors with greater flexibility and potential profits than other types of investments.
Some of the benefits of options investing include:
- The ability to control a large investment with a small amount of capital.
- The ability to profit in both rising and falling markets.
- The ability to hedge against risk.
- The ability to generate income.
What are the risks of an options trading position?
When it comes to options trading, the risks can be high. Here are a few things to consider before getting into an options trading position.
First, you need to be aware of the potential for losses. Options trading is a risky business, and you can lose money if you’re not careful.
Second, you need to be comfortable with the idea of using leverage. Leverage can help you make bigger profits, but it can also lead to bigger losses.
Finally, you need to be aware of the fees and commissions that come with options trading as these costs can eat into your profits if you’re not careful.
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