This book fully stands on its own, but it can also be viewed as a companion text to Covered Call Writing Demystified (see the book description on Amazon.com for more information). Hence the similarity in name. These are the reasons:
* Put option writing and covered call writing have essentially the same reward and risk characteristics. When used as outlined in the book, they are very conservative (unlike many other uses of options).
* Investors using covered call writing will find opportunities to use put option writing to achieve similar double-digit investment results, but also to have the opportunity to purchase stocks or Exchange Traded Funds at a discount from their present value.
What is put option writing?
Have you been tempted at times to buy a particular stock, but decided not to take the plunge because you thought it might be overpriced...or, just on a hunch, you thought you might be able to pick up the shares at a lower price? Not only might it be possible for you to buy that stock for less, but what if someone were willing to pay you cash today at a double-digit return rate and also give you the opportunity to buy it at a lower price later? Does that sound too good to be true? It is not. It is called put option writing, and it s available to you on literally thousands of stocks and Exchange Traded Funds (ETFs). Put Option Writing Demystified is totally focused on providing (1) the education you need to fully understand the concepts behind put option writing and (2) a unique easy-to-follow program so that you can implement the strategy yourself without the help of a full-service broker or investment manager.
The book also provides short-term technical analysis tools to assist in guiding market forecasts and making even more profitable put writing decisions
In addition to presenting everything you need to know about put option writing and how to implement your own personal put writing program the book provides:
* A uniquely designed Microsoft® Excel template for put writing to assist in reviewing writing selection alternatives so that the best decisions for you are reached to achieve your investment return goal.
* An Excel file containing all of the latest U.S. ETFs with a wealth of information about them, including those on which options are available.
* Details about brokerage accounts, with special emphasis on the use of online discount brokerages for quick, very low cost execution of trades. Web sites for brokerages, charting sources and other technical information are provided.
* Tax information you need for understanding and administering the income tax aspects of put option writing. This includes the opportunity for deferring taxation of income until a later tax year while enjoying the use of the income now.
With interest rates so low and a scarcity of acceptable investment alternatives available to investors, put option writing, as well as covered call writing, may offer two of the best possible opportunities to achieve consistent double-digit investment returns in the slow-growth market we seem likely to encounter ahead.
