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The Stock Option Income Generator outlines a low-stress approach to making predictable profits no matter what the state of the overall market. Harvey Friedentag, a registered investment advisor who has been successfully using this strategy for more than thirty-six years, shows how to pick stocks and then sell call options against those stocks to generate a constant source of income. With this book, you'll quickly learn to
* Make consistent profits in the stock market and increase your gains
* Protect stock holdings from price declines, cutting your losses
* Profit from big market moves as well as sideways moves
* Receive a controllable tax shelter from an option income portfolio
* Buy more stocks for less money
Friedentag's strategy is ideal for anyone who wants to generate better returns than the overall market averages, with less risk, and receive the benefits of tax-advantaged investing.
The Stock Option Income Generator outlines a low-stress approach to making predictable profits no matter what the state of the overall market. Harvey Friedentag, a registered investment advisor who has been successfully using this strategy for more than thirty-six years, shows how to pick stocks and then sell call options against those stocks to generate a constant source of income. With this book, you'll quickly learn to
* Make consistent profits in the stock market and increase your gains
* Protect stock holdings from price declines, cutting your losses
* Profit from big market moves as well as sideways moves
* Receive a controllable tax shelter from an option income portfolio
* Buy more stocks for less money
Friedentag's strategy is ideal for anyone who wants to generate better returns than the overall market averages, with less risk, and receive the benefits of tax-advantaged investing.
HARVEY C. FRIEDENTAG is an investment adviser and money manager. He is certified as a Federal Court expert witness on stock trading, options, and other derivatives. Specializing in covered call writing, Friedentag has been managing money since 1986 and has consistently generated annual returns of more than 15%. He is also the author of the book Investing without Fear, which has been called, "a gem of a book for serious option writers." Friedentag serves as President of the Contrarian Investment Club in Denver, Colorado.
Preface xiii
Acknowledgments xvii
Chapter 1 Fear and Ignorance 1
The Stock Market Crash of 1929 2
Investment Knowledge + Stock Market = Profits 6
Understanding Investor Behavior 6
The Crash of 2008 7
What to Do First 8
My Investment History 10
Summary 13
Chapter 2 Invest with Confidence 15
What is Investing? 18
Asset Allocation 18
Risk versus Reward: Finding Your Balance 19
The Three Strategic Factors 22
Stocks: The Long-Term Core 23
Defining Investing and Fear 29
Market Madness: Black Monday, October 19, 1987 31
Market Anxiety is Caused by Many Factors 32
Year 2008: The Collapse of the Stock Market 32
Investing and Gambling 34
Investment Policy Statement 35
Discipline Can Be Really Good for You 35
Chapter 3 An Overview of How to Invest 37
Inflation 38
Investing in Stocks 39
Contrarian Investing 48
Growth Stock Investing 48
Common-Sense Stock Selection 49
Dividend Income Stock Investing 50
Keep in Mind 50
Chapter 4 Stock Picking, Research, and Annual Reports 53
Questions for Investment Decisions 54
Sources of Investment Information 55
Trade Press 57
Investment Clubs 58
Reading the Annual Report 59
The Quarterly Report 66
Changing the Rules 66
Annual Meetings 67
Stock Selection Summary 68
Chapter 5 How to Read the Financial News 71
Guide to the Economy and the Stock Market 74
Your Wallet Can Be a Leading Economic Indicator 76
Chapter 6 The Art of Investing, Risk, and Reward 79
Stocks or Bonds? 80
Market Timing 81
Avoid Common Investment Risks 82
Risk Breeds Fear 83
General Investment Strategies 85
The Tools of Contrarian Investing 89
Classic Stock Market Statements 89
Madness of Crowds 90
Take Advantage of the Pros 92
Insider Information 95
Insider Trading is Not Always Illegal 96
Buy, Sell, or Hold? 97
Performance Records 100
Investing Considerations 100
Transaction Costs Compared 101
To Make Money in the Stock Market, Don't Lose Any 102
Chapter 7 Dividend Reinvestment Plans 105
Dividend Reinvesting Plans and Dollar Cost Averaging 107
The Compounding Effect 108
DRPs: Advantages for the Investor 108
DRPs: Advantages for the Companies 109
Using DRPs to Select Stocks 109
Safety with a Small Investment 110
Dividend Reinvestment Plans and the Compounding Effect 110
The Dividend Debate 110
Chapter 8 Picking and Dealing with a Stockbroker 113
We Invest to Make Money 114
The Buck Starts Here 115
Shocking Facts: Is Research from Wall Street Useless, or Worse? 116
The Stocks in the Dow Jones Averages 118
Today's Bargains Can Be Tomorrow's Winners, and Today's Winners Can Be Tomorrow's Losers 120
Why Use a Discount Broker? 121
Understanding Procedures 122
Chapter 9 Advanced Investing and Goal Setting 131
Financial Failure 132
Money × Return × Time = Your Goal 134
Your Money 135
Your Return 136
Your Time 136
Investment Risks 138
Risk-Reward Relationship 139
Chapter 10 Building Your Portfolio 141
How the Pros Choose Stocks 142
Benjamin Graham, the Value Investor 143
How Other Professionals Invest 145
Value versus Stock Price 146
Buying and Selling Stocks 147
Portfolio Management Guidelines 150
A Reliable Way to Invest 155
Chapter 11 Basic Investment Guidelines 159
The Realities of Investing: Mind over Matter 159
Don't Panic 160
Do Not Try to Predict the Market 160
Capitalize on Stock Market Anxiety and Euphoria 162
Remember, No One Becomes Poor Taking a Profit 163
Understanding Bankruptcy 164
Key Considerations 166
Always Remember 168
Chapter 12 Options and the Stock Market 171
What is an Option? 171
The Business of Options 172
Options Share Many Similarities with Common Stocks 173
History of Options 174
Function of Options 175
Factors Affecting Option Valuation 176
The Option Premium 179
The Option Strategy 180
Some Questions and Answers 181
Getting Started 182
Why Sellers Sell Calls: Some Strategies 183
Option Exercise 186
Option Fundamentals 187
Using Options and Margin 191
What is Margin? 192
Avoid the Premium Trap 192
Put-Call Ratios 193
Option Quotes 194
Selling Options: Prudent Investing Method 194
Chapter 13 Options and Potential Returns 197
Naked Option Writing 198
Starting a Covered Call Program 198
The Pricing of Options 199
Determining the Best Time Value 202
Determining the Best Strike Price 203
Determining the Best Underlying Stock 205
When to Take Action 206
Understanding Published Option Premiums 207
Option Symbols 209
The Standard Method of Using Options 211
My Method of Using Options 211
Chapter 14 Margin: The Credit You Can Use 215
Advantages of Margin 217
The Margin Account and Buying Power 218
Margin Account Maintenance 219
Margin Interest 220
Important Margin Principles 222
Opening a Margin Account 222
Basic Ideas and Terminology 222
Portfolio Valuation 223
Portfolio Financials 223
Margin or Maintenance Call 224
Converting Dividends into Capital Gains 224
Using Margin for Personal Purchases 224
Chapter 15 Managing an Option Income Portfolio 227
The Writing Possibilities 231
Option Selection for Option Writing 233
Selling Time Value 234
Selling a Covered Call Option 235
Stockbrokerage Commissions 237
Buy and Write Strategy (Buy-Write) 237
Formula for Stock and Option Selection 239
The Option Buyer 240
Proof That an Option Income Portfolio is a Winner 240
Follow-Up Action 241
Periodical Review of Portfolio Equity Holdings 242
Option Income Portfolio Review 245
Chapter 16 Option Income Portfolio as a Tax Shelter 247
Investment Definitions 247
The Option Income Portfolio and Taxes 249
Option Contract Closing Transaction 250
Tax Deferral 250
Tax Gains or Losses 251
Capital Loss or Gain Bank 252
Chapter 17 Options: Standard Operating Procedures 255
Rule of Thumb 256
No Time = No Time Value 256
Stock Price Goes Down 258
Stock Price Stays the Same 258
Stock Price Goes Up 259
Selling and Buying Back Calls: One Stock for One Year 262
Option Income Portfolio Procedure 263
So Why Aren't You Selling Options? 267
Chapter 18 LEAPS 269
LEAPS Options for a Longer Term 270
LEAPS Pricing 271
LEAPS Symbols 273
Chapter 19 Conclusions 279
Fear, Greed, Hope, and One's Self 280
Traits of the Winner 281
Traits of the Loser 281
The Surprising New Shape of the Economy 282
Madness of Crowds Returns 284
The Good News 286
Remember Time Plus Money for Successful Investing 287
Appendix Investing in Citigroup through the Years 289
Citicorp: A Financial History 289
Contrarian Investment Club History 291
Resources 295
Investing Books 295
Option Books 297
Information Links 298
About the Author 301
Index 303
Erscheinungsjahr: | 2009 |
---|---|
Fachbereich: | Betriebswirtschaft |
Genre: | Wirtschaft |
Rubrik: | Recht & Wirtschaft |
Medium: | Buch |
Inhalt: | 336 S. |
ISBN-13: | 9780470481608 |
ISBN-10: | 0470481609 |
Sprache: | Englisch |
Einband: | Gebunden |
Autor: | Friedentag, Harvey C |
Hersteller: |
Wiley
John Wiley & Sons |
Maße: | 159 x 233 x 24 mm |
Von/Mit: | Harvey C Friedentag |
Erscheinungsdatum: | 01.10.2009 |
Gewicht: | 0,61 kg |
HARVEY C. FRIEDENTAG is an investment adviser and money manager. He is certified as a Federal Court expert witness on stock trading, options, and other derivatives. Specializing in covered call writing, Friedentag has been managing money since 1986 and has consistently generated annual returns of more than 15%. He is also the author of the book Investing without Fear, which has been called, "a gem of a book for serious option writers." Friedentag serves as President of the Contrarian Investment Club in Denver, Colorado.
Preface xiii
Acknowledgments xvii
Chapter 1 Fear and Ignorance 1
The Stock Market Crash of 1929 2
Investment Knowledge + Stock Market = Profits 6
Understanding Investor Behavior 6
The Crash of 2008 7
What to Do First 8
My Investment History 10
Summary 13
Chapter 2 Invest with Confidence 15
What is Investing? 18
Asset Allocation 18
Risk versus Reward: Finding Your Balance 19
The Three Strategic Factors 22
Stocks: The Long-Term Core 23
Defining Investing and Fear 29
Market Madness: Black Monday, October 19, 1987 31
Market Anxiety is Caused by Many Factors 32
Year 2008: The Collapse of the Stock Market 32
Investing and Gambling 34
Investment Policy Statement 35
Discipline Can Be Really Good for You 35
Chapter 3 An Overview of How to Invest 37
Inflation 38
Investing in Stocks 39
Contrarian Investing 48
Growth Stock Investing 48
Common-Sense Stock Selection 49
Dividend Income Stock Investing 50
Keep in Mind 50
Chapter 4 Stock Picking, Research, and Annual Reports 53
Questions for Investment Decisions 54
Sources of Investment Information 55
Trade Press 57
Investment Clubs 58
Reading the Annual Report 59
The Quarterly Report 66
Changing the Rules 66
Annual Meetings 67
Stock Selection Summary 68
Chapter 5 How to Read the Financial News 71
Guide to the Economy and the Stock Market 74
Your Wallet Can Be a Leading Economic Indicator 76
Chapter 6 The Art of Investing, Risk, and Reward 79
Stocks or Bonds? 80
Market Timing 81
Avoid Common Investment Risks 82
Risk Breeds Fear 83
General Investment Strategies 85
The Tools of Contrarian Investing 89
Classic Stock Market Statements 89
Madness of Crowds 90
Take Advantage of the Pros 92
Insider Information 95
Insider Trading is Not Always Illegal 96
Buy, Sell, or Hold? 97
Performance Records 100
Investing Considerations 100
Transaction Costs Compared 101
To Make Money in the Stock Market, Don't Lose Any 102
Chapter 7 Dividend Reinvestment Plans 105
Dividend Reinvesting Plans and Dollar Cost Averaging 107
The Compounding Effect 108
DRPs: Advantages for the Investor 108
DRPs: Advantages for the Companies 109
Using DRPs to Select Stocks 109
Safety with a Small Investment 110
Dividend Reinvestment Plans and the Compounding Effect 110
The Dividend Debate 110
Chapter 8 Picking and Dealing with a Stockbroker 113
We Invest to Make Money 114
The Buck Starts Here 115
Shocking Facts: Is Research from Wall Street Useless, or Worse? 116
The Stocks in the Dow Jones Averages 118
Today's Bargains Can Be Tomorrow's Winners, and Today's Winners Can Be Tomorrow's Losers 120
Why Use a Discount Broker? 121
Understanding Procedures 122
Chapter 9 Advanced Investing and Goal Setting 131
Financial Failure 132
Money × Return × Time = Your Goal 134
Your Money 135
Your Return 136
Your Time 136
Investment Risks 138
Risk-Reward Relationship 139
Chapter 10 Building Your Portfolio 141
How the Pros Choose Stocks 142
Benjamin Graham, the Value Investor 143
How Other Professionals Invest 145
Value versus Stock Price 146
Buying and Selling Stocks 147
Portfolio Management Guidelines 150
A Reliable Way to Invest 155
Chapter 11 Basic Investment Guidelines 159
The Realities of Investing: Mind over Matter 159
Don't Panic 160
Do Not Try to Predict the Market 160
Capitalize on Stock Market Anxiety and Euphoria 162
Remember, No One Becomes Poor Taking a Profit 163
Understanding Bankruptcy 164
Key Considerations 166
Always Remember 168
Chapter 12 Options and the Stock Market 171
What is an Option? 171
The Business of Options 172
Options Share Many Similarities with Common Stocks 173
History of Options 174
Function of Options 175
Factors Affecting Option Valuation 176
The Option Premium 179
The Option Strategy 180
Some Questions and Answers 181
Getting Started 182
Why Sellers Sell Calls: Some Strategies 183
Option Exercise 186
Option Fundamentals 187
Using Options and Margin 191
What is Margin? 192
Avoid the Premium Trap 192
Put-Call Ratios 193
Option Quotes 194
Selling Options: Prudent Investing Method 194
Chapter 13 Options and Potential Returns 197
Naked Option Writing 198
Starting a Covered Call Program 198
The Pricing of Options 199
Determining the Best Time Value 202
Determining the Best Strike Price 203
Determining the Best Underlying Stock 205
When to Take Action 206
Understanding Published Option Premiums 207
Option Symbols 209
The Standard Method of Using Options 211
My Method of Using Options 211
Chapter 14 Margin: The Credit You Can Use 215
Advantages of Margin 217
The Margin Account and Buying Power 218
Margin Account Maintenance 219
Margin Interest 220
Important Margin Principles 222
Opening a Margin Account 222
Basic Ideas and Terminology 222
Portfolio Valuation 223
Portfolio Financials 223
Margin or Maintenance Call 224
Converting Dividends into Capital Gains 224
Using Margin for Personal Purchases 224
Chapter 15 Managing an Option Income Portfolio 227
The Writing Possibilities 231
Option Selection for Option Writing 233
Selling Time Value 234
Selling a Covered Call Option 235
Stockbrokerage Commissions 237
Buy and Write Strategy (Buy-Write) 237
Formula for Stock and Option Selection 239
The Option Buyer 240
Proof That an Option Income Portfolio is a Winner 240
Follow-Up Action 241
Periodical Review of Portfolio Equity Holdings 242
Option Income Portfolio Review 245
Chapter 16 Option Income Portfolio as a Tax Shelter 247
Investment Definitions 247
The Option Income Portfolio and Taxes 249
Option Contract Closing Transaction 250
Tax Deferral 250
Tax Gains or Losses 251
Capital Loss or Gain Bank 252
Chapter 17 Options: Standard Operating Procedures 255
Rule of Thumb 256
No Time = No Time Value 256
Stock Price Goes Down 258
Stock Price Stays the Same 258
Stock Price Goes Up 259
Selling and Buying Back Calls: One Stock for One Year 262
Option Income Portfolio Procedure 263
So Why Aren't You Selling Options? 267
Chapter 18 LEAPS 269
LEAPS Options for a Longer Term 270
LEAPS Pricing 271
LEAPS Symbols 273
Chapter 19 Conclusions 279
Fear, Greed, Hope, and One's Self 280
Traits of the Winner 281
Traits of the Loser 281
The Surprising New Shape of the Economy 282
Madness of Crowds Returns 284
The Good News 286
Remember Time Plus Money for Successful Investing 287
Appendix Investing in Citigroup through the Years 289
Citicorp: A Financial History 289
Contrarian Investment Club History 291
Resources 295
Investing Books 295
Option Books 297
Information Links 298
About the Author 301
Index 303
Erscheinungsjahr: | 2009 |
---|---|
Fachbereich: | Betriebswirtschaft |
Genre: | Wirtschaft |
Rubrik: | Recht & Wirtschaft |
Medium: | Buch |
Inhalt: | 336 S. |
ISBN-13: | 9780470481608 |
ISBN-10: | 0470481609 |
Sprache: | Englisch |
Einband: | Gebunden |
Autor: | Friedentag, Harvey C |
Hersteller: |
Wiley
John Wiley & Sons |
Maße: | 159 x 233 x 24 mm |
Von/Mit: | Harvey C Friedentag |
Erscheinungsdatum: | 01.10.2009 |
Gewicht: | 0,61 kg |