How to Start Trading Options: A Self-Teaching Guide for Trading Options Profitably [Paperback]

Kevin Kraus (Author)

Book Description

Series: Self-Teaching Guide | Publication Date: September 21, 2005

A popular options authority offers you a hands-on guide to get you up and trading—even if you’re a novice

Options are extremely popular with traders looking to gain leverage and reduce risk, but books on the subject often get bogged down in complex mathematical formulas and other detailed discussions, which aren’t helpful a new trader. Start Trading Options delivers clear, concise, and ready-to-use explanations to guide you from the fundamentals of options through more advanced and powerful trading strategies.

Plain-English descriptions explain uses of calls and puts, strategies for buying and selling, techniques for combining futures and options to create synthetic positions, and types of spreads from strangles and straddles to vertical, ratio, and delta.

Editorial Reviews

From the Back Cover

Easy-to-use option strategies to dramatically increase your trading profits while slashing your downside risk

Start Trading Options takes a straightforward approach, using simple and easy language and math to give you just the facts--what options are, how and why they work, and what you need to do to start making them work for you today.

Written by veteran options trader and trainer Kevin Kraus, Start Trading Options includes:

• The basics of buying and selling puts and calls, proper order terminology, how to calculate breakeven points, and more
• Spread strategies and techniques, including vertical, ratio, butterfly, back, credit, and condor spreads, along with long and short strangles and straddles
• Advanced techniques, including multiple options strategies, calendar spreads, synthetic futures, and option forecasting "on the fly"
• Risk management strategies, from establishing risk points and placing stop orders to popular hedging methods
• "Test your Knowledge" sections within each chapter, along with listings of key terms and quizzes at the end of each chapter

Millions of traders and investors use basic, no-nonsense options strategies every day to augment their profits while protecting their portfolios against sudden price drops. Discover what they know and what you need to know to adopt their proven and profitable techniques in Start Trading Options.

About the Author

Kevin Kraus is president of CSM Futures, a pioneer web based and retail service brokerage firm that offers 24-hour online access, education, and market support. He is the creator of Kevin Kraus's Option Tutor Course. For more information, visit his Website at www.kkraus.com.

Product Details

• Paperback: 188 pages
• Publisher: McGraw-Hill; 1 edition (September 21, 2005)
• Language: English
• ISBN-10: 007145909X
• ISBN-13: 978-0071459099
• Product Dimensions: 9.2 x 7.4 x 0.5 inches
• Shipping Weight: 10.4 ounces (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,052,581 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

29 of 29 people found the following review helpful:

3.0 out of 5 stars Basic Book on Options Trading, October 25, 2005

By 

L. Masonson (Monroe, New York USA) - See all my reviews
(REAL NAME)   

This review is from: How to Start Trading Options: A Self-Teaching Guide for Trading Options Profitably (Paperback)

Kevin Kraus, president of CSM FUTURES GROUP, wrote Start Trading Options: Self-Teaching Guide for Trading Options Profitably. In this soft-cover book of 178 pages, Kraus delivers a straightforward options education in six chapters covering commodity and futures market basics, options basics, buying and selling options, option spreads strategies, advanced strategies, and risk management. Most chapters follow a similar format containing an explanation of the subject matter, numeric examples and tables, a few short quizzes, a chapter test, and key terms.

I found it surprising that Kraus uses commodity options as the basic options type explained in the book, considering that most beginners would probably be more interested in and familiar with equity or index options examples. Interestingly, except for two examples with bonds, all the examples use commodity options. In any case, the method of trading and the strategies used for trading either commodity or stock options are similar. However, the underlying fundamental news is unique to the underlying option type.

The writing style is simple and easy to follow. There are many numerical examples, so the reader needs to work through the numbers to see the profitability parameters of the particular option strategy. Readers coming in with a lackadaisical attitude toward the examples or skipping them will not receive the educational benefits of this book.

After reading the book, the reader will have a good understanding of the subject matter. That does not mean that options trading should be immediately started. A much deeper knowledge of trading, technical and fundamental analysis, trading psychology is needed to be successful.

At the end of the book, the author provides 16 useful tips and tricks for successfully trading options. After reading this book, you will have a basic understanding of the options markets and strategies. However, before risking any money, I would suggest that you find a mentor or simulated trading environment to test different strategies. Only after extensive practice should you put your money at risk.