| Description |
xvi, 317 pages : illustrations ; 24 cm. |
| Bibliography |
Includes bibliographical references (pages 295-303) and index. |
| Contents |
pt. I. Options for the intelligent investor -- 1. Option fundamentals -- Characteristics and history -- Directionality -- Flexibility -- 2. The Black-Scholes-Merton model -- BSM's main job is to predict stock prices -- BSM is lousy at its main job -- 3. The intelligent investor's guide to option pricing -- How option prices are determined -- Time value versus intrinsic value -- How changing market conditions affect option prices -- pt. II. A sound intellectual framework for assessing value -- 4. The golden rule of valuation -- The value of an asset -- Cash flow generated on behalf of owners -- The company's economic life -- Time value of money : summing up cash flows over time -- 5. The four drivers of value -- Bird's eye view of the valuation process -- A detailed look at the drivers of value -- 6. Understanding and overcoming investing pitfalls -- Behavioral biases -- Structural impediments -- pt. III. Intelligent option investing -- 7. Finding mispriced options -- Making sense of option quotes -- Delta : the most useful of the Greeks -- Comparing an intelligent valuation range with a BSM range -- 8. Understanding and managing leverage -- Investment leverage -- Simple ways of measuring option investment leverage -- Understanding leverage's effects on a portfolio -- Managing leverage -- 9. Gaining exposure -- Long call -- Long put -- Strangle -- Straddle -- 10. Accepting exposure -- Short put -- Short call (call spread) -- Short straddle/short strangle -- 11. Mixing exposure -- Long diagonal -- Short diagonal -- Covered call -- Protective puts -- Collar -- 12. Risk and the intelligent option investor -- Market risk -- Valuation risk -- Intelligent option investing -- Appendix A. choose your battles wisely -- Where the BSM works best -- Where the BSM works worst -- Appendix B. The many faces of leverage -- Operational leverage -- Financial leverage -- Appendix C. Put-call parity -- Dividend arbitrage and put-call parity. |
| Subject |
Options (Finance)
|
|
Investments.
|
| ISBN |
9780071833653 (hardback) |
|
007183365X (hardback) |
|
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