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Options Books

Michael Thomsett

I invite everyone to check out my options books ... these are written to provide useful education and strategic information on  a range of strategies.

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By Michael C. ThomsettMay 1, 2012
Topics: Business books

Options -- Covered Call Total Return

Michael Thomsett

How do you calculate returns from writing covered calls? At first glance, this seems like an easy question; return is return, right? But in fact, calculating return can be done in several different ways.

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By Michael C. ThomsettApril 25, 2012
Topics: Finance & Investing

Complex Strategies Are Not Always Better Strategies

Michael Thomsett

Even the most experienced option trader can benefit with an occasional reminder: The most basic strategies often are the best, all depending on the situation and what you hope to accomplish with the option position.

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By Michael C. ThomsettApril 23, 2012
Topics: Finance & Investing

Option Speculations -- The New Bad Guys?

Michael Thomsett

The president has identified "speculation" as the cause for high oil prices. But as an economic observation (and not a political one) I challenge anyone to explain how that works.

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By Michael C. ThomsettApril 19, 2012
Topics: Geo-politics

Options Trading: The Question of Suitability

Michael Thomsett

Anyone interested in trading options has to be qualified by their broker to trade. This demands a separate options agreement in which you have to state your experience and knowledge.

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By Michael C. ThomsettApril 18, 2012
Topics: Finance & Investing

Options: The Call Bear Spread - Worthwhile or Not?

Michael Thomsett

The call bear spread is a two-part strategy best used when you believe the underlying price will decline. It consists of a long call plus a lower-strike short call.

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By Michael C. ThomsettApril 16, 2012
Topics: Finance & Investing

Options Trading: Know Your Tax Risks

Michael Thomsett

Options are odd devices in many ways; but one potential risk many traders are completely unaware of is the tax risk involved. Taxation for options is complicated and illogical in many respects. Know where you stand before closing out positions to avoid having an unpleasant tax surprise.

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Options Trading - Ultimate Leverage with Synthetics

Michael Thomsett

The two major synthetics -- long stock and short stock -- involve options but mirror price movement in 100 shares of stock. These may reduce market risks while setting up positions with zero cost - the best leverage of all.

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By Michael C. ThomsettMarch 26, 2012
Topics: Finance & Investing

4 Ways to Create Conservative Options Trading

Michael Thomsett

Options traders are always hungry for new, valuable sources for information. If you are a conservative investor who wants to learn how to create appropriate trades within your risk profile, and how to use options as a portfolio management tool, here are four suggestions for you:

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By Michael C. ThomsettMarch 22, 2012
Topics: Finance & Investing

Options Trading: Timing Short-Term Trades

Michael Thomsett

Market risk exists whether you own shares of stock or use options to anticipate market-wide movement. In that sense, options are not higher-risk than stocks. In fact, because one option lets you control 100 shares of stock, they are far less risky. If you can benefit from stock price movement for about 5% of the cost of those shares, your risks are lower.

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By Michael C. ThomsettMarch 22, 2012
Topics: Finance & Investing

5 Powerful Ways to Swing Trade with Options

Michael Thomsett

Most “swing traders” -- those moving in and out of positions in two- to five-day short-term price swings -- use shares of stock for their strategy. But options can vastly expand your swing trading program with less risk and greater leverage. Here are five ways this can work for you.

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By Michael C. ThomsettMarch 20, 2012
Topics: Finance & Investing

4 Ways to Turn High-Risk Naked Options Strategies into Low-Risk Ones

Michael Thomsett

We have always viewed specific option strategies in terms of risk. Naked contracts, for example, are high-risk. Even basic long options are high-risk because most of them expire, right? Not always. Here is a new and expanded way to look at risk, even for those strategies widely believed to always be high-risk.

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By Michael C. ThomsettMarch 16, 2012
Topics: Finance & Investing

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