Options Trading for the Institutional Investor: Managing Risk in Financial Institutions

by Michael C. Thomsett

To protect portfolios in today's volatile and uncertain market environment, institutional investors need to hedge losses, create extra sources of income, and reduce risk. In his extensively updated and expanded Options Trading for the Institutional Investor, Third Edition, renowned options expert Michael C. Thomsett shows how to do all this effectively. One step at a time, Thomsett helps institutional investors exploit powerful, carefully chosen options strategies that can dramatically increase overall returns as you manage risks within your institution's limits. Thomsett discusses covered call writing on carefully selected stocks, contingent purchase strategies, and powerful "combination" strategies that produce cash to bolster current income. He guides professional investors through every strategy, using actual examples, portfolios, and graphs taken directly from today's markets. Wherever applicable, he addresses specific forms of risk and volatility that only institutional investors face. This thoroughly updated Third Edition includes a chart-based analytical method that relies on reversal signals in the underlying as an alternative to volatility analysis. Thomsett presents new chapters on two powerful strategies he has developed and utilized to optimize returns while minimizing the 1-2-3 Iron Butterfly, and the Dividend Collar. This edition also adds detailed new coverage of risk evaluation.

322 pages, Hardcover

First published September 21, 2009

About the author

Michael C. Thomsett is an expert in technical analysis and stock markets. He has published dozens of books on the topic as well as peer-reviewed papers, magazine articles, and blog entries. He has been writing professionally since 1978 and his best-selling, Getting Started in Options (John Wiley & Sons) is currently in its 10th edition (published by DeGruyter with a new title, “Options”) and has sold over 350,000 copies. The author lives near Nashville, Tennessee and he writes full time.