Winning with Options: The Smart Way to Manage Portfolio Risk and
Maximize Profit
Options are an integral part of any financial portfolio, but they can be intimidating
to the average investor. While often viewed as risky, the truth is that, if used properly,
options can be one of the best tools for balancing a portfolio. In fact, they can help
investors protect themselves from downside risk and leverage capital to make bigger plays
than would otherwise be possible.
In Winning with Options, Michael C. Thomsett offers nontechnical,
easy-to-follow advice for readers who need guidance on important techniques related to
portfolio management, such as diversification and risk management.
Readers will discover how to:
• choose the right brokerage firm
• use online resources
• pick the right stocks
• track options
• set portfolio and risk goals
• understand the complicated world of options lingo
• make the most of day trading and swing trading
Straightforward and practical, this is the one book that will help the novice option
trader navigate the sometimes daunting, but often rewarding, world of trading and
investing in options.
Table of Contents
Introduction: Portfolio Management Alternatives 1
A Few Basics 5
Setting Portfolio and Risk Goals 34
The Strange World of Options Lingo 55
A Primer on Options Trading 79
Spreads and Straddles 109
The Contingent Purchase Plan 131
Options for Short-Term Profits 153
Tax Rules for Options 177
Diversifying by Strategy Instead of by Stock 192
A Long-Term Portfolio Planning Guide 217
Glossary 237
Index 245
260 pages, Paperback