{"product_id":"options-for-volatile-markets-isbn-9781118022269","title":"Options for Volatile Markets","description":"\u003cb\u003ePractical option strategies for the new post-crisis financial market\u003c\/b\u003e  \u003cp\u003eTraditional 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 managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In \u003ci\u003eOptions for Volatile Markets,\u003c\/i\u003e Richard Lehman and Lawrence McMillan provide you with specific strategies to lower portfolio volatility, bulletproof your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with.\u003c\/p\u003e \u003cp\u003eWhile the core strategy of this new edition remains covered call writing, the authors expand into more comprehensive option strategies that offer deeper downside protection or even allow investors to capitalize on market or individual stock volatility. In addition, they discuss new offerings like weekly expirations and options on ETFs. For investors who are looking to capitalize on global investment opportunities but are fearful of lurking \"black swans\", this book shows how ETFs and options can be utilized to construct portfolios that are continuously protected against unforeseen calamities.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eA complete guide to the increased control and lowered risk covered call writing offers active investors and traders\u003c\/li\u003e \u003cli\u003eAddresses the changing investment environment and how to use options to succeed within it\u003c\/li\u003e \u003cli\u003eExplains how to use options with exchange-traded funds\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eUnderstanding options is now more important than ever, and with \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e as your guide, you'll quickly learn how to use them to protect your portfolio as well as improve its overall performance.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eIntroduction The “New Normal” in Equity Investing 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Option Basics 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Are Options? 7\u003c\/p\u003e \u003cp\u003eExercise and Assignment 14\u003c\/p\u003e \u003cp\u003ePositions 17\u003c\/p\u003e \u003cp\u003eHow Options Are Traded 19\u003c\/p\u003e \u003cp\u003eOptions in Your Account 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Option Pricing and Valuation 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOption Premium 25\u003c\/p\u003e \u003cp\u003eTheoretical Value 27\u003c\/p\u003e \u003cp\u003eTime Value 28\u003c\/p\u003e \u003cp\u003eVolatility 31\u003c\/p\u003e \u003cp\u003eInterest Rates 32\u003c\/p\u003e \u003cp\u003eDividends 32\u003c\/p\u003e \u003cp\u003eCalls versus Puts 33\u003c\/p\u003e \u003cp\u003eOption Skews and Anomalies 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Basics of Covered Call Writing 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRequirements for “Valid” Covered Writes 38\u003c\/p\u003e \u003cp\u003eRisk\/Reward of a Covered Write 39\u003c\/p\u003e \u003cp\u003eCalculating Potential Returns 46\u003c\/p\u003e \u003cp\u003eMajor Factors Affecting Call-Writing Returns 48\u003c\/p\u003e \u003cp\u003eCovered Writing as an Ongoing Strategy 54\u003c\/p\u003e \u003cp\u003eSumming Up Covered Writing 57\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Implementing Covered Call Writing 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFollow-Up Actions 59\u003c\/p\u003e \u003cp\u003eBehavioral Issues 69\u003c\/p\u003e \u003cp\u003eDiffering Approaches 70\u003c\/p\u003e \u003cp\u003eSelecting Calls to Write 77\u003c\/p\u003e \u003cp\u003eRisks 80\u003c\/p\u003e \u003cp\u003eBasic Tax Rules for Options 81\u003c\/p\u003e \u003cp\u003eSumming Up Implementation 84\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Advanced Call-Writing Techniques 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWriting Calls on “Hot” Stocks 88\u003c\/p\u003e \u003cp\u003eTax Deferral Strategies 89\u003c\/p\u003e \u003cp\u003eCovered Writing on Margin 90\u003c\/p\u003e \u003cp\u003eCovered Writing against Securities Other Than Stock 93\u003c\/p\u003e \u003cp\u003ePartial Writing, Mixed Writing, and Ratio Writing 98\u003c\/p\u003e \u003cp\u003ePut Writing 103\u003c\/p\u003e \u003cp\u003eExpiration Games 106\u003c\/p\u003e \u003cp\u003eOption-Stock Arbitrage 108\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Basic Put Hedging 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePut Hedge Basics 111\u003c\/p\u003e \u003cp\u003eAdvantages 115\u003c\/p\u003e \u003cp\u003eDisadvantages 116\u003c\/p\u003e \u003cp\u003eBehavioral Implications 123\u003c\/p\u003e \u003cp\u003ePut Hedge versus Covered Call 127\u003c\/p\u003e \u003cp\u003eHedging against Catastrophic Risk 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Advanced Hedging Strategies 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePut Hedge Follow-Ups 131\u003c\/p\u003e \u003cp\u003eUsing Put Spreads to Hedge 137\u003c\/p\u003e \u003cp\u003eCollars 145\u003c\/p\u003e \u003cp\u003eConclusions on Protective Option Strategies 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Options on ETFs 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eETFs in a Nutshell 154\u003c\/p\u003e \u003cp\u003eETF Options 158\u003c\/p\u003e \u003cp\u003eCovered Call Writing on ETFs 159\u003c\/p\u003e \u003cp\u003eOur Put Hedge and Collar Study on SPY 162\u003c\/p\u003e \u003cp\u003eAppendix: Partial List of ETFs with Listed Options 165\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Volatility and Volatility Derivatives 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Volatility? 171\u003c\/p\u003e \u003cp\u003eUsing VIX as a Market Indicator 173\u003c\/p\u003e \u003cp\u003eVolatility Futures 179\u003c\/p\u003e \u003cp\u003eVariance Futures 181\u003c\/p\u003e \u003cp\u003eThe Behavior of VIX Futures 183\u003c\/p\u003e \u003cp\u003eVIX Options 191\u003c\/p\u003e \u003cp\u003eVIX Option Strategies 199\u003c\/p\u003e \u003cp\u003eThe Future 204\u003c\/p\u003e \u003cp\u003eAcknowledgments 205\u003c\/p\u003e \u003cp\u003eAbout the Authors 206\u003c\/p\u003e \u003cp\u003eIndex 207\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eRICHARD LEHMAN\u003c\/b\u003e is the founder of RHL Capital, a registered investment advisor, and a part-time instructor of behavioral finance and options at UC Berkeley Extension. He is also the author of \u003ci\u003eFar From Random\u003c\/i\u003e, and publishes an investment newsletter called the\u003ci\u003e Channelist\u003c\/i\u003e. Lehman's financial career spans more than thirty years in product management, marketing, sales, and investment management beginning with an eleven-year stint on Wall Street with E.F. Hutton \u0026amp; Co., Thomson McKinnon Inc., and the New York Stock Exchange. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eLAWRENCE G. M\u003csmall\u003eC\u003c\/small\u003eMILLAN\u003c\/b\u003e is the founder and President of McMillan Analysis Corporation. He authors the \u003ci\u003eDaily Volume Alerts\u003c\/i\u003e, a unique daily service that selects short-term stock trades by looking for unusual increases in equity option volume. McMillan manages option-oriented accounts for individual investors and also publishes the\u003ci\u003e Option Strategist\u003c\/i\u003e, a derivative products newsletter covering equity, index, and futures options. McMillan's web site, www.optionstrategist.com, twice received a \"Best of the Web\" award from \u003ci\u003eForbes\u003c\/i\u003e magazine. He is the coauthor, with Richard Lehman, of the first             edition of this book and the author of \u003ci\u003eMcMillan on Options\u003c\/i\u003e (Wiley) and \u003ci\u003eOptions as a              Strategic Investment\u003c\/i\u003e.   Today's financial markets harbor risk and uncertainties far beyond historically accepted norms—especially when it comes to the \"new normal\" of equity investing, which presents new challenges in managing these risks. Nobody understands this better than authors Richard Lehman and Lawrence G. McMillan, and now, with the Second Edition of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e, they share their extensive experience in this evolving field with you.  \u003c\/p\u003e\u003cp\u003eWith economic and market uncertainty at a very high level, options are still the most effective tool available for managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In the Second Edition of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e, you'll discover specific strategies to lower portfolio volatility, protect your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with.\u003c\/p\u003e \u003cp\u003eEngaging and informative, this new edition remains trueto the core strategy of covered call writing, but also expands into more comprehensive option strategies that offer deeper downside protection or even allow you to capitalize on market or individual stock volatility.It opens with a quick refresher on options, from how they're traded to the factors that affect their price, then moves on to reveal the most effective covered call writing techniques currently available. While basic covered call writing is thoroughly explained, you'll also gain valuable insights into more sophisticated implementations of call writing, including the use of margin, employing underlying securities other than stocks, and partial or ratio writing.\u003c\/p\u003e \u003cp\u003eLehman and McMillan also examine other important,but often underutilized option strategies—such as puthedging and spreading—discuss follow-up actions that stem from basic put hedging, and explore usingcombined put-call strategies as a continuous portfolio management approach for dealing with volatility and reducing downside risk. Along the way, you'll even become familiar with the rapidly growing practice ofusing options with exchange-traded funds (ETFs),learn how to actually trade volatility by itself through recently introduced vehicles like VIX and VXX, andemploy volatility strategies to hedge an equity portfolio.\u003c\/p\u003e \u003cp\u003eUnderstanding options is now more important than ever. With the Second Edition of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e as your guide, you'll quickly learn how to use them to protect your portfolio as well as improve its overall performance.\u003c\/p\u003e  \u003cp\u003eTODAY'S FINANCIAL MARKETS harbor risk and uncertainties far beyond historically accepted norms—especially when it comes to the \"new normal\" of equity investing, which presents new challenges in managing these risks. Nobody understands this better than authors Richard Lehman and Lawrence G. McMillan, and now, with the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e, they share their extensive experience in this evolving field with you. \u003c\/p\u003e\u003cp\u003eWith economic and market uncertainty at a very high level, options are still the most effective tool available for managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e, you'll discover specific strategies to lower portfolio volatility, protect your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with. \u003c\/p\u003e\u003cp\u003eEngaging and informative, this new edition remains true to the core strategy of covered call writing, but also expands into more comprehensive option strategies that offer deeper downside protection or even allow you to capitalize on market or individual stock volatility. It opens with a quick refresher on options, from how they're traded to the factors that affect their price, then moves on to reveal the most effective covered call writing techniques currently available. While basic covered call writing is thoroughly explained, you'll also gain valuable insights into more sophisticated implementations of call writing, including the use of margin, employing underlying securities other than stocks, and partial or ratio writing. \u003c\/p\u003e\u003cp\u003eLehman and McMillan also examine other important, but often underutilized option strategies—such as put hedging and spreading—discuss follow-up actions that stem from basic put hedging, and explore using combined put-call strategies as a continuous portfolio management approach for dealing with volatility and reducing downside risk. Along the way, you'll even become familiar with the rapidly growing practice of using options with exchange-traded funds (ETFs), learn how to actually trade volatility by itself through recently introduced vehicles like VIX and VXX, and employ volatility strategies to hedge an equity portfolio. \u003c\/p\u003e\u003cp\u003eUnderstanding options is now more important than ever. With the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eOptions for Volatile Markets\u003c\/i\u003e as your guide, you'll quickly learn how to use them to protect your portfolio as well as improve its overall performance.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989723988197,"sku":"NP9781118022269","price":60.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118022269.jpg?v=1761785255","url":"https:\/\/k12savings.com\/products\/options-for-volatile-markets-isbn-9781118022269","provider":"K12savings","version":"1.0","type":"link"}