20 lines
1.4 KiB
Plaintext
20 lines
1.4 KiB
Plaintext
2 • The Intelligent Option Investor
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The first part of this book will give you a good understanding of
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what options are, how their prices are determined, and how those prices
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fluctuate based on changes in market conditions.
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There is a good reason to develop a solid understanding of this
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theoretical background: the framework the option market uses to determine
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the price of options is based on provably faulty premises that, while
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“approximately right” in certain circumstances, are laughably wrong in
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other circumstances. The faults can be exploited by intelligent, patient inves-
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tors who understand which circumstances to avoid and which to seek out.
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Without understanding the framework the market uses to value
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options and where that framework breaks down, there is no way to exploit
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the faults. Part I of this book, in a nutshell, is designed to give you an
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understanding of the framework the market uses to value options.
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This book makes extensive use of diagrams to explain option theory,
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pricing, and investment strategies. Those readers of the printed copy of this
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book are encouraged to visit the Intelligent Option Investor website (www
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.IntelligentOptionInvestor.com) to see the full-color versions of the type of
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illustrations listed here. Doing so will allow you to visualize options even
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more effectively in the distinctive intelligent option investing way. |