Profiting from Weekly Options: How to Earn Consistent Income Trading Weekly Option Serials

TAKE ON THE DERIVATIVES MARKET WITH SIMPLE TRADES AND DEPENDABLE PROFIT

If you′ve been looking to break into derivatives as an individual investor, Profiting from Weekly Options is for you. It used to be next to impossible to compete with the pros on derivatives, but now there′s a surefire entry point: weekly options. In only a few years, weekly options went from being non–existent to accounting for 30% of all options traded. That′s because traders have discovered their income potential and, with this book, so can you.

Written for investors at all levels, Profiting from Weekly Options describes the recurring trades you can make to establish profit and avoid the risk of ruin from capital drawdown. You′ll learn about market psychology, asset groups, and the option chain without being overwhelmed by complex equations. If you can pass the "Final Exam" at the end of the book, you′ll be ready to take on the big leagues!

Foreword
Todd Bubba Horwitz

Preface

Acknowledgments

Chapter 1: Market Psychology: the Mind Set of a Trader

The Herd Mentality: Bubbles

The South Sea Bubble 1711–1721:  Trade, War, and Government Collusion

The Cotton Panic of 1837:  Land, Commodities, and Government

The Panic of 1893 Railroads Have No Upper Limit

September 11, 2001: Price Can Never Go up Again

The Commodity Bubble of 2008:  Price Can Never Go Down Again

Bitcoin 2009 to Present: Crypto– Currency Meets Greed

Lessons to Be Learned

Chapter 1 Quiz

Chapter 2: Modern Markets

Equity Markets

Liquidity

Flow of Funds

Futures Markets: Origins

Calculating Future Contract Values

Tick Size

Margin

Stock Index Futures

Index Futures vs. Stock

Forex:  Currencies

Options

Summary

Chapter 2 Quiz

Chapter 3: Technical versus Fundamental Price Analysis

Summary

Chapter 3 Quiz

Chapter 4: Phases of the Market

Congestion

Breakout to the trend

Blow Off

Summary

Chapter 4 Quiz

Chapter 5: The Relationship of Time and Price

Summary

Chapter 5 Quiz

Chapter 6: Introduction to Options

Basic Option Glossary

Working Option Vocabulary

Summary

Chapter 6 Quiz

Chapter 7: The Option Model

Games of Chance

Air in the Balloon

Summary

Chapter 7 Quiz

Chapter 8: The Option Chain

Summary

Chapter 8 Quiz

Chapter 9: Option Trading Strategies

Why Selling Naked Options Is Always Wrong!

Suitable Option Trades

The Credit Spread

Summary

Chapter 9 Quiz

Chapter 10: Why Trade Weekly Options?

Buying a Call or a Put Outright

Summary

Chapter 10 Quiz

Chapter 11: Midterm Review

Psychology

Liquidity

Market Pricing

Phases of the Market

Relationship of Time and Price

Option Vocabulary

Summary

Test for Chapters 1– 10

Chapter 12: Standard Deviation the Mathematics of the Price Cycle

Summary

Chapter 12 Quiz

Chapter 13: Trading in a Congestion Phase of the Market

Trade One Buying an Outright Option

Trade Two Credit Spreads

Trade Three Risk Reversals

Trade Four Backspread (1 X 2 for Even)

Summary

Chapter 13 Quiz

Chapter 14: Trading in a Trending Phase of the Market

Trade One Buying an Outright Option

Trade Two Credit Spreads

Trade Three Risk Reversals

Trade Four Backspread (1 X 2 for Even)

Summary

Chapter 14 Quiz

Chapter 15: Trading in the Blowoff Phase of the Market

Trade One Buying an Outright Option

Trade Two Credit Spreads

Trade Three Risk Reversals

Trade Four Backspread (1 X 2 for Even)

Summary

Chapter 15 Quiz

Chapter 16: Selecting a Portfolio to Trade

Liquidity

Volatility

Diversification by Product

Diversification by Dollar Risk

Summary

Chapter 16 Quiz

Chapter 17: Managing Your Equity

Risk of Ruin

Risk Capital

Volatility

Win Rate

Starting Capital

Summary

Chapter 17 Quiz

Chapter 18: Organizing Trades and FAQs

Step One: Observing Your Portfolio

Step Two: Observing the Major Trend and Making a Trade

Step Three: The Amount of Equity Needed to Trade Each Strategy

Frequently Asked Questions

Summary

Final Exam: 100 Questions

Appendix I: Answers to the Chapter Quizzes

Appendix II: Days Until Expiration Straddle Values Bold Indicates a Weekend

Glossary of Option Terms

About the Author

Index

ROBERT J. SEIFERT is an independent options trader with over 38 years in the securities industry. He has published articles in Barron′s and the Wall Street Journal describing his unique and highly regarded trading model.