Add training workflow, datasets, and runbook
This commit is contained in:
@@ -0,0 +1,28 @@
|
||||
141
|
||||
Part III
|
||||
IntellIgent OptIOn
|
||||
InvestIng
|
||||
Now that you understand how options work and how to value companies,
|
||||
it is time to move from the theoretical to the practical to see how to apply
|
||||
this knowledge to investing in the market. With Part III of this book, we
|
||||
make the transition from theoretical to practical, and by the time you finish
|
||||
this part, you will be an intelligent option investor.
|
||||
To invest in options, you must know how to transact them; this is the
|
||||
subject of Chapter 7. In it, you will see how to interpret an option pricing
|
||||
screen and to break down the information there so that you can under -
|
||||
stand what the option market is predicting for the future price of a stock. I
|
||||
also talk about the only one of the Greeks that an intelligent option investor
|
||||
needs to understand well—delta.
|
||||
Chapter 8 deals with a subject that is essential for option investors—
|
||||
leverage. Not all option strategies are levered ones, but many are. As such,
|
||||
without understanding what leverage is, how it can be measured and used,
|
||||
and how it can be safely and sanely incorporated into a portfolio, you can-
|
||||
not be said to truly understand options.
|
||||
Chapters 9–11 deal with specific strategies to gain, accept, and mix
|
||||
exposure. In these chapters I offer specific advice about what strike prices
|
||||
are most effective to select and what tenors, what to do when the expected
|
||||
outcomes of an investment materially change, and how to incorporate
|
||||
each strategy into your portfolio. Chapter 11 also gives guidance on so-
|
||||
called option overlay strategies, where a position in a stock is overlain by
|
||||
an option to modify the stock’s risk-reward profile (e.g., protective puts for
|
||||
hedging and covered calls for generating income).
|
||||
Reference in New Issue
Block a user