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PROFIT WITH OPTIONS CHAPTER 1

1 INTRODUCTION. LEARNING OBJECTIVES: The material in this chapter will help you to: • Become familiar with the terms and concepts of option trading. • Analyze the components of option price. • Use historical and implied volatility to formulate your option trading strategy. | PROFIT WITH OPTIONS Team-Fly Founded in 1807 John Wiley Sons is the oldest independent publishing company in the United States. With offices in North America Europe Australia and Asia Wiley is globally committed to developing and marketing print and electronic products and services for our customers professional and personal knowledge and understanding. The Wiley Trading series features books by traders who have sur vived the market s ever changing temperament and have prospered some by reinventing systems others by getting back to basics. Whether a novice trader professional or somewhere in between these books will provide the advice and strategies needed to prosper today and well into the future. For a list of available titles please visit our Web site at www.WileyFinance.com. A Marketplace Book PROFIT WITH OPTIONS Essential Methods for Investing Success LAWRENCE G. McMILLAN JOHN WILEY SONS .