Monday 1 December 2014

'If I Were An Option Writer - A Guide for The Buyers of Option Contracts'


My latest book available for pre-order. The book will be released on 15th December 2014.

Available at http://www.hnkanade.co.in/buy-ebooks/#!/If-I-Were-An-Option-Writer/p/44912781/category=0

There are many persons, especially in a country like India, who do not know anything about the stock market. However, they become attracted to the stock market trading. They are not investors. They are traders by nature, that too amateurs. They want to make money as quickly as possible. Obviously, they are not interested in actually buying the shares or other underlying assets and taking the delivery for the same as this involves an investment of a considerable amount of money and time. So, they try to find other alternatives where they can trade with a limited amount of money. They find that there are futures contracts, in case of which, only margin money needs to be invested. This appears to be a good choice. Moreover, the return on investment is unbelievably high. They start creating long or short positions in the futures market. But alas! They soon realize that there are chances of earning huge profits only when their predictions are right. Otherwise, there are equally heavy losses. They realize that futures contracts are not a correct alternative for them. So, they start searching for something else. They find it. It is an option contract. It is available cheaply. Even if their predictions go wrong, they do not lose much. Moreover, the potential profit in case of an option contract is unlimited. So, they start buying call options and put options. Sometimes, they make money, sometimes they lose. However, over a period of time, they find out that they have lost a great amount of money in options contracts. This book is intended specifically for people belonging to this category.
It shows the way in which a person dealing in options contracts as a buyer can make good profits in most of his deals. This book does not claim that a buyer will earn profits in every such deal. Moreover, a buyer has to collect some basic information for the purpose of analysis. Such information is easily available on many public domains. Correct analysis and interpretation of such information can result into handsome profits for a trader.
I wish you a tremendously profitable options trading!!!

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