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Investing beginners will learn all the skills—soup to nuts—they need
to successfully and confidently invest in the stock and options market. peo-
ple who have some experience in options and who may have used covered
calls, protective puts, and the like will find out how to greatly improve their
results from these investments and how to use options in other ways as
well. professional money managers and analysts will develop a thorough
understanding of how to effectively incorporate option investments into
their portfolio strategies and may in fact be encouraged to consider ques-
tions about valuation and behavioral biases in a new light as well.
The approach used here to teach about valuation and options is
unique, simple without being simpleminded, and extremely effective in
communicating these complex topics in a memorable, vivid way. r ead-
ers used to seeing option books littered with hockey-stick diagrams and
partial differential equations may have some unlearning to do, but no mat-
ter your starting point—whether you are a novice investor or a seasoned
hedge fund manager—by the end of this book, I believe that you will look
at equity investing in a new light.
xvi •   Introduction