Proven Option Spread Trading Strategies: How to Trade Low-Risk Option Spreads for High Income and Large Returns

by Ex

An 1/8th of an inch doesn't sound like much of an edge but in the Olympic 100 meter sprint it's the difference between taking home the gold medal or the silver medal. Like the world of sports, successful option trading comes down to a few simple edges that can be the difference between making the lion's share of profits or just ending up the lion's lunch on Wall Street. As a 25-year veteran of the stock and options markets as well as a frequent contributor to Futures Magazine, Traders.com Advantage, MoneyMorning.com, and other financial publications, I know from experience that the leverage and risk control provided by option trading strategies is unmatched. The dirty secret that most option trading books won't tell you is that most options end up expiring worthless. Worse, even if you're right about the direction and time your option trade perfectly, a rise or fall in the option's volatility can still cause a loss. And, for those who are trying to build up to option trading in your spare time, it can be tough trying to watch the markets from open-to-close when you're juggling work, family, and other responsibilities. To succeed, you need to arm yourself with strategies that put the odds in your favor, not work against you. The good news is that options have the flexibility to craft easy option spread positions that profit from time decay, not just price movement. Even better, using these option strategies, you can enjoy more winning trades, greater consistency in performance, and a smoother equity curve by making time decay work for you instead of against you. In this book, you'll learn: * How to pick the best trades and in what markets. * What tools you're going to need. * Detail how simple the strategies are and how to use them. * Simple tools to help you make your trade decisions. * Which moving averages help you determine the trend. * What simple indicators to use. * How to know which option to sell so that you make the most money. * How to know which option to trade to lower our risk and increase winning percentages. * What to do if things don't go as planned (this is going to be your backup plan to keep you from suffering unnecessary losses). * Risk management strategies to help you grow your account while controlling your risk. * And, alot more. Start today in learning how to make greater and more consistent returns by going to the orange buy button in the upper right-hand side side of the page to download this book and get started now!

160 pages, Paperback

First published November 11, 2013

Reviews

[ted clevenger · Rating 5 out of 5]

Easy to follow good honest advice

I like the fact that the author covered many different types of spreads. He gives his picks to keep it simple, very nice for beginners. He definitely steers the reader in the direction of risk management. The honesty and simplicity are why I have it 5 stars.

[Luke G · Rating 1 out of 5]

Basic information

There isn't much focus on strategy. Half of the book is comprised of just definitions and glossing over technical analysis.
Nothing in this book was worth the $3 that I paid for it.

[Rahul Kher · Rating 3 out of 5]

Good to read

Many strategies explained beautifully. More examples of real trades with their analysis on the success or failure of that particular trade would have been great.

[Juan Carlos Vallejo · Rating 5 out of 5]

Best ever.

I have read around 100 options books. This is the best one for beginners to intermediate traders. I highly recommend this book.

[Kara · Rating 5 out of 5]

Proven Option Spread Trading Strategies is full of practical advice from an industry veteran that will show you simple ways to trade options with a minimal amount of risk and a maximum amount of return. This is a great book for aspiring options traders because it is full of established techniques—meaning you don’t need to spend time (and lose money) trying to figure out what works. Williams includes a ton of useful information like they types of option spreads to use, how to conduct fundamental and technical analysis, and most importantly, how to manage your trades to minimize losses. The strategies are clearly explained and Williams provides relevant examples to demonstrate how it all works. He also recommends that you start trading with simulation accounts first so you can see how these techniques can work for you.

[Mike McCormick]

Great intro, but more examples would have been helpful

I recognize this was just a primer, but it would have been great to have more examples, including graphs, especially for some of the more basic strategies like the bull put spread or the iron condor.

[Kelly · Rating 3 out of 5]

Good and concise explanation of various option spread types/strategies