TradeKing Options Playbook Review
- Discount Stock Broker:
Learn how to trade options using the Options Playbook from TradeKing, one of the best discount stock brokers. The book offers options trading strategies that are explained in plain language with real-world examples to help investors understand how options trading works.
When I opened my TradeKing account in 2007, I also got a book, The Options Playbook, from TradeKing after I expressed interest in options trading. I have bought and sold stocks for several years, but never traded options because I feel that trading options requires a little more skills than buying and selling stocks. Before I understand exactly how to trade options, I am not going to jump just because, from what I heard, options trading is a faster way to make money (or lose money for that matter).
I got the book for quite some time already, but didn’t get the chance to read it until recently. Actually, it isn’t really a book that you can buy from a book store, but more like notes with basics of options trading that are easy to understand. It starts with explanations of what an option and volatility is and some common terminologies used in trading options (such as Long, Short, Put, Call, and Strike Price, etc.).
After the basic concepts, there are a few pages in the book, called Rookie’s Corner, for beginners like me. This part of the book mainly covers two topics (or plays) for traders who just start to trade options and don’t want to get burned:
- Writing covered calls
- Buying LEAPS calls as a stock substitute
The discussions in Rookie’s Corner cover the definition of each of the techniques and scenarios when and how to use them.
What I like the most about the book is The Plays part that consists of a total of 30 plays. Each play tells investors the setup of the play, who should run it and when to run it, and the strategy for the play. In addition, each play also comes with a diagram that shows the market condition to use the play.
I am still reading and digesting the plays and have yet to use any technique to trade option, but so far I found that the book is quite helpful in understanding some commonly used strategies in options trading. And because of the concise, getting-right-to-the-point language used in describing each play, reading the playbook is much easier than reading a traditional book.
I got the playbook when I opened my TradeKing account a couple of years ago. Right now, the book may not be available in hardcopy. However, if you are interested in using the playbook as the starting point to learn to trade options, you can still read the book online after you open a TradeKing account (be sure to check out TradeKing review to learn more about the broker before opening an account). In addition, TradeKing also offer two free intelligence reports on options trading:
To receive these free reports, all you need to do is provide your email address and the reports will be sent right to your inbox. And besides the free reports, you will also get $50 bonus if you use the link in the email to open a TradeKing account with $2,500 or more and make a trade. Pretty sweet, right?
Given how volatile the stock market has been lately, maybe it is time to finally learn how to use options trading to profit
- $4.95 per trade
- editor rating5
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