While there are many books on options and many books on technical analysis, there are few books that bring these two important areas of the financial markets together. In Increasing Alpha with Options, Scott Fullman expertly describes how options can be used in conjunction with technical analysis to trade profitably. Fullman explains how technical analysis can be used to identify a variety of situations such as the beginning of a trend, a trend reversal, a trend continuation pattern, and a trading range. For each situation he recommends the ideal options strategies to capitalize on the market situation, without taking undue risk. The book will be valuable to traders who are well-versed in technical analysis, but weak on options knowledge, as well as option traders who are not particularly expert on technical analysis. Fullman provides strategies that are geared for both short-term traders and longer term investors and describes how options can be used to protect an investment portfolio"--|cProvided by publisher.
Introduction.
1 Why Technical Analysis?
Bases.
Fundamentals vs. Technicals.
Tops.
2 The Basics of Technical Analysis.
Understanding Chart Types.
Trend Properties.
The Trend Is Your Friend.
Volatile or Negative Markets.
Primary and Secondary Trends.
First Strategy.
Put Hedges.
Implied Volatility.
Seasonal Trends.
Cyclical Trends.
Moves within Moves.
Nontrends.
Understanding the Properties of Trends.
3 Trends and Their Ends.
Elliott Waves and Common Trend Analysis.
Nesting Patterns.
Continuation Patterns.
Continuation or Reversal?
Opposing Reversal Patterns.
4 Building Strategies around Reversal and Continuation Patterns.
Spotting Reversal and Continuation Patterns.
Confi rming Patterns Using Different Time Frames.
Building Pattern-Based Strategies.
More Complex Patterns: The Double Top.