Cover image for DeMark on day trading options : using options to cash in on the day trading phenomenon
DeMark on day trading options : using options to cash in on the day trading phenomenon
DeMark, Thomas R., 1947-
Personal Author:
Publication Information:
New York : McGraw Hill, [1999]

Physical Description:
xxv, 358 pages : illustrations ; 25 cm
Added Author:
Format :


Call Number
Material Type
Home Location
Item Holds
HG6024.U6 D46 1999 Adult Non-Fiction Non-Fiction Area

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Combines day trading and options trading into a blueprint for dealing in volatile markets. This work breaks ground by introducing methods and techniques specifically designed for day trading options. It provides an understanding on selecting the options to trade for specific markets and details how traders can accurately predict market movements.

Author Notes

Thomas DeMark has spent 28 years in the investment business. DeMark has been a consultant to large hedge fund and mutual fund managers, and his numerous clients have included George Soros, Paul Tudor Jones, Union Carbide, IBM, and many others. The featured speaker at numerous conferences, he has also written numerous articles for financial magazines and two successful books on market timing. The New Science of Technical Analysis and New Market Timing Techniques.
Thomas DeMark, Jr., traded his own account on the floor of the Chicago Board of Trade and currently is a trader for a large, successful hedge fund. He has conducted numerous seminars on his proprietary trading indicators throughout the Far East, Europe, and the United States, and coauthored a series of twelve feature articles for Futures magazine.

Table of Contents

Forewordp. xi
Prefacep. xv
Introductionp. xix
Acknowledgmentsp. xxiii
Trademarksp. xxv
1 Backgroundp. 1
Part I Option Basicsp. 5
2 Option Basicsp. 7
Introduction to Basicsp. 7
What Is an Option?p. 9
Options Pricingp. 17
Options with Optionsp. 27
Exercise the Optionp. 27
Trade the Optionp. 30
Let the Option Expirep. 31
Example of Exercising versus Tradingp. 31
Option Strategiesp. 32
Spreadsp. 32
Vertical Spreadsp. 33
Calendar Spreadsp. 44
Straddles and Combinationsp. 46
Long Straddlep. 47
Long Combinationp. 48
Short Straddlep. 51
Short Combinationp. 54
3 Option Mechanics and Tradingp. 59
Placing Option Ordersp. 59
Reading an Option Price Tablep. 63
Selecting an Optionp. 64
How Much to Buyp. 67
When Not to Buy an Optionp. 67
Why Trade Options?p. 68
Part II Option Techniques and Indicatorsp. 69
4 Tools and Techniquesp. 71
Buying Weakness and Selling Strengthp. 72
Option Purchasing Rulesp. 76
Rules for Buying Calls and Putsp. 78
Our Introduction to Optionsp. 80
Indicatorsp. 82
5 Option Indicators TD % F and TD Dollar-Weighted Optionsp. 85
TD % Fp. 87
TD Dollar-Weighted Optionsp. 98
Dollar-Weighted Put/Call Ratiop. 100
Dollar-Weighted Put/Call Ratio as a Percent of Open Interestp. 101
Dollar-Weighted Put/Call Option Entry Pointp. 103
Part III Underlying Indicatorsp. 105
6 Anticipating the Trend: TD Sequential, TD Combo, and TD Setup Trendp. 107
TD Sequentialp. 110
Setupp. 111
Intersectionp. 125
Countdownp. 126
TD Combop. 158
Setupp. 158
Countdownp. 168
Trading with TD Sequential and TD Combop. 174
TD Sequential and TD Combo Entryp. 187
Stop Loss Levelsp. 205
Taking Profitsp. 206
TD Setup Trend (TDST)p. 206
7 Disqualified Breakouts: TD Lines and TD Retracementsp. 215
Qualified and Disqualified TD Linesp. 215
Qualifiers for an Upside Breakout of TD Supply Linep. 222
Qualifiers for a Downside Breakout of a TD Demand Linep. 223
Calculating TD Line Breakout Price Objectivesp. 226
TD Line Cancellationsp. 233
TD Line Summaryp. 233
TD Line Gapp. 234
TD Line Gap REBOp. 235
Retracementsp. 238
TD Relative Retracementp. 239
TD Relative Retracement Cancellationsp. 248
TD Double Retracementp. 249
TD Absolute Retracementsp. 257
8 Perfecting an Oscillator: TD REI nad TD POQp. 269
Market-Timing Oscillatorsp. 269
TD Range Expansion Index (TD REI)p. 271
TD Price Oscillator Qualifier (TD POQ)p. 273
Disqualified TD POQ Readingsp. 280
9 Moving Forward in Reverse: TD Fib Range, TD Exit One, TD REBO Reverse, TD Camouflage, and TD Range Projectionp. 287
TD Fib Rangep. 287
TD Exit Onep. 291
TD REBO Reversep. 297
TD Camouflagep. 304
TD Range Projectionp. 309
10 Pulling It All Togetherp. 319
A Trading Game Planp. 321
Game Plan Summaryp. 335
Other Option Trading Tipsp. 336
Expanding Your Horizonsp. 337
Conclusionp. 339
Appendixp. 343
Bibliographyp. 346
Recommended Readingp. 346
Indexp. 351