Synopses & Reviews
Options are potentially one of the most profitable investment instruments available in today?s intensely volatile financial markets. Just a few years ago, the information needed to exploit the vast earnings potential of options was beyond the reach of all but a handful of analysts. Now, anyone with a PC and a few basic software tools has direct access to all the up-to-the-minute market information needed to compete successfully with the "big boys." But, having information and knowing how to wield it are two very different things. In this groundbreaking book, online options trading innovator George Fontanills arms you with the knowledge and skills youneed to unleash the phenomenal power of your computer to become a successful online options trader.
Following a concise review of the basics of online trading--including hardware andsoftware requirements and essential online resources--Fontanills cuts to the chase with step-by-step coverage of 15 proven managed risk option trading strategies. Specifically designed for online traders, these tested off-floor techniques provide you with a sure-fire method for consistently building up your trading account. Drawing upon his years as a leading international options educator, Fontanills makes it easy for you to master online options trading by walking you through a series of hypothetical trades that demonstrate how to compute the maximum risk, maximum profit, breakevens, and exit alternatives for each strategy.
Trade Options Online also includes a comprehensive guide to fundamental and technical analysis methodologies, a detailed list of 240 hot financial resources, websites analyzed from the point of view of an online options trader, and a review of more than 70 online brokerages. Trade Options Online is your complete guide to earning a living and making a killing as an online options trader.
"George Fontanills, the dean of options trading, has put together an online options trading approach that is down-to-earth and insightful. Armed with this book, investors should feel well equipped to play on the battlefield, having been forewarned of the risks, dangers, and opportunities. Fontanills cares about everyone?s money as much as he cares about his own--a rare find in the world of finance." - Peter D. Henig Senior Editor, The Red Herring
"Fontanills clearly and concisely outlines a map for options traders looking to move online. Covering options strategies as well as some technical information, Trade Options Online provides a solid overview of this emerging area of investing. As always, Fontanills is ahead of the trend." - Brenon Daly Options columnist
"Fontanills has written a great guide for the experienced and novice options trader. I highly recommend Trade Options Online to anyone. Trading options online is the obvious next frontier. Be ahead of the curve." - Bill M. Williams, PhD, CTA Author, Trading Chaos and New Trading Dimensions
"Options trading expert George Fontanills has written the definitive guide to trading options online. Filled with everything from a comprehensive list of insightful website reviews to innovative options strategies, Trade Options Online is a ?must read? for all investors who want to compete successfully in the computerized markets of the twenty-first century!" - Brown President and CEO
With the advent of online and electronic trading, more investors are turning into traders. This book takes a critical look at the online brokers that offer options trading and shows how trading strategies work in the online world.
'Praise for Trade Options Online, 2nd Edition
\"The sophistication of online options trading platforms has continued to grow and modern traders have unparalleled tools at their disposal.
However, without knowing how to use these tools, they are useless. George\'s book is the perfect complement for anyone trading options online. All key strategies are covered in concise detail and explained with good examples. This is an excellent reference to support online options trading.\"
John-Paul Drysdale, CEO, Hubb, www.hubb.com
\"As cofounder and President of Optionetics, as well as a seasoned options trader with a successful pedigree, George Fontanills continues his leadership in successful options trading with this new edition. George provides step-by-step coverage of proven managed risk option trading strategies against a backdrop of fundamental and technical methods. This is a must-read for anyone serious about options trading.\"
Laurence J. Pino, Esq., Chairman and CEO, Dynetech, Inc.
\"George Fontanills has continued to do what he has done for years: ?educate people in the ways to use options to improve their investing performance with an eye on managing risk. ?He speaks of things that all traders should learn: ?setting up replicable systems, limiting downside risk and maximizing upside rewards, and generating consistent returns over long periods of time. Online options trading has become sophisticated enough to really narrow the gap between retail and institutional execution capabilities.\"
George Ruhana, CEO, OptionsHouse, LLC
\"If you trade options, want to trade options, or even think you want to trade options, this is a \'must\' book to have. You will read and re-read it, each time learning something new.?George Fontanills is the master options teacher.\"
Ned W. Bennett, CEO and Cofounder, optionsXpress, Inc. '
""Options trading expert George Fontanills has written the definitive guide to trading options online. Filled with everything from a comprehensive list of insightful website reviews to innovative options strategies, Trade Options Online is a ?must read for all investors who want to compete successfully in the computerized markets of the twenty-first century!"" - Brown President and CEO
Since the first edition of Trade Options Online was published nearly eight years ago, much has changed in this fast-moving field. The ease of electronic trading combined with a variety of new productsincluding new indexes and ways to trade volatilityhas spurred the ongoing growth of the options market and created profitable new opportunities in the process.
As advances in technology allow online options traders to become more independent, understanding the intricacies of this marketplace and making good trading decisions have become more important than ever. That's why options trading innovator George Fontanills has written a fully revised and updated second edition of his best-selling book.
Filled with in-depth insights and practical advice, this accessible guide provides you with a working knowledge of essential options strategies and the computer savvy to enhance your online trading endeavors. While the first few chapters outline the basics of online options trading, this book quickly moves on to address how you can integrate proven options-based trading techniques into a comprehensive plan that fits your personal preferences.
Fontanills details various managed-risk option strategiesfrom vertical spreads to ratio backspreadsthat are designed to take advantage of everyday market opportunities, and walks you through a series of hypothetical trades that demonstrate how to compute the maximum risk, maximum profit, breakevens, and exit alternatives for each strategy. Along the way, Fontanills also takes the time to discuss other essential elements of this discipline, including trading futures options, streamlining your trading approach, and mastering the inner workings of the order process, to name a few.
In addition to this information, several appendices offer guidance that will help you maintain a competitive online edge, including a short list of options trading software; reviews of more than 200 financial resource sites broken down by specific categories; surveys of online brokerages as they compare to one another in services, commissions, and resources; and much more.
While it's rewarding to build wealth from the comfort of your computer, it takes time to learn how financial markets function as well as develop effective trading strategies to operate within them. The Second Edition of Trade Options Online will show you how to do this, and much more, whether you're looking to boost returns by using leverage or protect your investments by hedging.
About the Author
GEORGE A. FONTANILLS heads Pinnacle Investments of America, Inc., a Boston-based money manager and hedge fund (www.pia funds.com). Pinnacle has recorded spectacular returns for its investors with George's high-profit, low-risk option trading strategies, specializing in Internet and technology stocks. For many years, George Fontanills has been been publishing his option strategies through www.optionetics.com, a free website. Before forming Pinnacle, Mr. Fontanills was the principal of a floor operation on the American Stock Exchange. He began his career as a CPA and holds an MBA from Harvard Business School.
Table of Contents
Why Trade Options.
Online Pros and Cons.
How to Get the Most from this Book.
Chapter 1. The Options Market Today.
How Things Have Changed Since the First Book.
The Exponential Growth of the Options Market.
Six US Options Exchanges.
Other Markets (Futures, Commodities, Stocks).
Electronic Exchanges Taking Over.
Electronic Trading/Direct Access to the Markets.
Opportunities for Smaller Investors Have Never Been Better.
Chapter 2. Online Investing 101 (Update).
Analyzing the Market.
Individual Stock Assessment.
Broad Market Analysis.
A Quick Course in Macro-economics.
Psychological Market Indicators.
Get a Good Education.
Chapter 3. Online Trading Resources (Update).
Kinds of Sites.
Chapter 4. A Primer for Stock and Option Basics.
Intrinsic Value and Time Value.
Offsetting Vs. Exercising.
Account Size and Margin.
Chapter 5. Basic Option Strategies.
The Greatest Show on Earth.
Riding the Roller Coaster.
Chapter 6. Vertical Spreads.
Bull Call Spread.
Bear Put Spread.
Bull Put Spread.
Bear Call Spread.
Chapter 7. Delta Neutral Strategies.
Introduction to Delta Neutral Trading.
The Long Straddle.
The Long Strangle.
The Long Synthetic Straddle.
Chapter 8. Ratio Backspreads.
Call Ratio Backspreads.
Put Ratio Backspreads.
Chapter 9. Sideways Spread Strategies.
Trading Range-bound or Sideways Markets.
Long Butterfly Spreads.
Long Condor Spreads.
Long Iron Butterfly Spreads.
Chapter 10. Electronic Futures Trading.
What are Futures Contracts.
What are Mini-contracts.
Trading Futures (basics).
Trading Futures strategies.
Chapter 11. Online Trading from A to Z.
Streamlining Your Approach.
Fundamental/Technical Online Approach.
Growth Stock Online Approach.
Finding Hedging Strategies Online.
Chapter 12. The Quest for the Ultimate Online Brokerage.
Taking the Plunge.
Types of Brokers.
The Benefits of Trading Online.
Criteria for Brokerage Reviews.
Top Ten Picks.
#2 Interactive Brokers.
#6 TD Ameritrade.
#7 Wall StreetE.
Chapter 13. Order Processing.
Placing an Order Online.
Inner Workings of Assignments and Option Exercising.
Online Order Entry Formats.
Chapter 14. Risk Management.
The Hidden Dangers of Online Trading.
Rules to Live By.
Appendix A. Informational Charts, Data &Strategy Reviews.
Option Expiration Month Codes.
Strike Price Codes.
Variable Option Deltas.
Risk Profile Basics.
Options Strategies Quick Review Guide.
Option Strategy Reviews.
Types of Orders.
Appendix B. Market Analysis Terminology.
Fundamental Analysis Methodologies &Indicators.
Technical Analysis Methodologies &Indicators.
Appendix C. Online Software Guide.
Appendix D. Financial Website Guide.
Appendix E. Financial Web Guide.
Appendix F. Online Brokerage Directory.