Cover image for How to make money with stock options : a basic guide for the conservative investor
Title:
How to make money with stock options : a basic guide for the conservative investor
Author:
Hecht, Mervyn L.
Personal Author:
Edition:
Second edition.
Publication Information:
New York : Vantage Press, [1999]

©1999
Physical Description:
152 pages : illustrations ; 24 cm
Language:
English
ISBN:
9780966248111
Format :
Book

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HG6042 .H43 1999 Adult Non-Fiction Non-Fiction Area
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Summary

Summary

How to Make Money with Stock Options is packed with insightful tips providing the cur investor a head start in successful stock marker investing. Shows the basic difference between stock and options, negative psychological influences on stock market decision making, how to protect stock portfolios at low cost, and much more.


Author Notes

Following graduation from UCLA (B.A., 1960) and Harvard Law School (J.D., 1963), Mervyn L. Hecht practiced law for twenty-five years. During his practice he advised national brokerage firms, individual investors, and investment advisors on investment strategies. Since his retirement, Mr. Hecht acts as a consultant to law firms involved in options cases, and sits as an arbitrator for the New York Stock Exchange and the National Association of Securities Dealers. The author lives in Santa Monica with his wife, Dr. Elizabeth Hecht.


Table of Contents

Prefacep. 1
Preface to Second Editionp. 7
I. Introductionp. 11
A. The Difference Between Options and Stocks
B. The Hard Part Is the Vocabulary
C. Understanding the Terminology: 11 Key Terms
D. Basic Examples
E. What is "Speculation?"
F. How to Enter an Order
II. Basic Strategiesp. 53
A. Buying an Option
B. Selling an Option
C. The Buy-Write
D. Summary of Simple Strategies
E. Basic Principles of Conservative Strategies
Preface to Parts III and IVp. 73
III. Writing CALLS Against Instruments Other Than Stockp. 77
A. Deep in the Money CALLS
B. Private Options and Collars
C. Convertible Bonds
D. Hedging Against Interest Rate Fluctuations
E. Long Term Options
IV. Combinations And Complex Strategies For Conservative Investorsp. 89
A. Spreads
B. Pricing Issues In Writing Spreads
C. Boxes
D. The In-And-Out Strategy
E. Option Strategies For Mitigating Losses
F. Straddles and Rolling-Rewrite Strategies
G. Open Combinations
H. Three Way "Buy-Write" Combinations
V. Mitigation Strategies And Taking Profits and Lossesp. 117
A. Understanding the Psychology of Loss
B. Margin and Commission Considerations
C. Recognizing Loss - Accepting a "Fresh Start"
D. Rolling a Position Up Or Down
E. Hedging a Position
VI. Tax Considerationsp. 135
VII. Lessons To Be Learnedp. 137
A. Three Keys to Keeping Brokers Out of Trouble
B. Lessons For Lawyers
VIII. Conclusionp. 151