Option Writing Strategies For Extraordinary Returns

Straightforward stock market strategies that offer exceptional returns and cash flow while substantially reducing market riskWith only minimal extra effort each month, you can do better--a lot better--than buy-and-hold. To earn solid returns while effectively managing risk, millions of investors in whipsaw financial markets have learned that basic option writing strategies can make a dramatic improvement in their investment returns.Option Writing Strategies for Extraordinary Returns details put and call writing techniques that investors from conservative to aggressive are using to both generate and protect portfolio profits in bull, bear, and non-trending markets. Whether your goal is to create better-than-average long-term growth or generate better-than-average current income, this timely book provides step-by-step directions you can follow to create a stock option strategy that allows you to: Combine the purchase of blue chip stock with the writing of puts and calls on that stock Increase your long position in the future, if the put is exercised, at a fixed price that is guaranteed to be lower than the current price Generate significant interest on cash received when you write optionsIt's not as complex as it sounds; it is, however, proven effective at reducing the risk of owning common stocks. Option Writing Strategies for Extraordinary Returns will change the way you look at stock ownership and option writing by combining the two into an effective, all-weather investing program.For too long, individual investors have been inundated with stories on the perils of option buying . Brokers and money managers who passed along these scare stories could hardly be blamed, since more often than not they had never taken the time to understand the profitable merits of writing options.Option Writing Strategies for Extraordinary Returns explains, in everyday language and without complex mathematics, how you can use option writing strategies to improve your investment returns while shielding your portfolio from unexpected loss. It explodes the prevailing myth that writing options exposes an investor to unpredictable and unlimited risk by detailing how, when used correctly, option writing is in fact among the most easy-to-use methodologies for shielding your portfolio from such risk.Using tables and charts to illustrate each step, veteran options expert David Funk details an innovative "three-legged" model that involves the purchase of a stock position and the simultaneous writing of both put and call options with different strike prices on that position. This model reduces the amount of downside risk assumed versus buying stock alone, while allowing you the flexibility to increase your upside potential when you feel circumstances warrant.This well-organized guidebook takes you through an innovative program designed to turn basic put and call option writing into powerful income and capital building tools: Section 1covers the basic concepts of covered call and cash-collateralized put writing Section 2explains how to design an investment program focused on capital appreciation Section 3shows how to adjust that program to maximize current income Section 4explores advanced strategies for extending positions, profiting from unusual events, and more Section 5shows you how to prepare for, and even profit from, early assignments and other unexpected occurrences Section 6takes a more in-depth look at the underlying theory of option writingOption Writing Strategies for Extraordinary Returns isn't a get-rich-quick book that promises to double your money each year. What David Funk's book does promise is to introduce you to a commonsense, market-proven investing strategy for making more money than the mFunk, David is the author of 'Option Writing Strategies For Extraordinary Returns ', published 2005 under ISBN 9780071448833 and ISBN 0071448837.