Lawrence G. McMillan
Prentice Hall Press
Investors and traders have access to a range of new choices to manage their investments thanks to the market in listed options and other non-equity option products. No matter how the market is performing, this updated and redesigned Fifth Edition of the best-selling Options as a Strategic Investment provides you with the most up-to-date market-tested methods for increasing the earnings potential of your portfolio while simultaneously limiting downside risk. This updated edition includes a plethora of tried-and-true strategies and tried-and-true business methods for making investments in a variety of cutting-edge new options products currently on the market. You will discover that: • Strategies for buying and selling Long-Term Equity Anticipation Securities (LEAPS). •A comprehensive explanation of neutral trading, including how it operates and the numerous ways in which it might enhance overall profit picture for readers • Detailed instructions on how to invest in Preferred Equity Redemption Cumulative Stocks (PERCS), as well as how to hedge those investments using common and regular option contracts. •A comprehensive analysis of the future and the possibilities for the future This comprehensive reference was written specifically for investors who already have some experience with the option market. It will show you the concepts and applications of various option strategies, including how they work, in which situations they are appropriate, and why they are appropriate; techniques for using index options and futures to protect one's portfolio and improve one's return; and the implications of the tax laws for option writers, including allowable long-term gains and losses. All of this information is presented in an easy-to-read format. The effectiveness of each tactic is demonstrated through the use of specific instances, illustrative materials, and checkpoints, all of which are based on an analysis of the market conditions.