The Secret of Writing Options by Louise Bedford

The writing of options in a sideways market is one of the few safe and effective ways to generate income for those with a blue-chip portfolio or a margin loan drawing capacity. “The Secret of Writing Options” by Louise Bedford is designed to guide interested readers in this field. This book provides detailed guidance on the subject of writing covered calls and puts to generate income. Louise Bedford takes a conservative approach concentrating on practices to protect the investor from loss. Both writing options on existing stock and undertaking a 'buy and write’ strategy are covered in detail however, this publication is not for those wishing to trade options on the options market.

The major topics covered in this book are:
· the benefits of writing options;
· a detailed explanation of the nature of call and put options;
· the stocks to use;
· an appreciation of both the buyer's and seller's perspectives;
· an analysis of pricing issues;
· an introduction to candlestick and trend charting;
· strategies to use;
· taking dividends into account; and
· putting your knowledge into action.

Learning "the secret of writing options" is assisted throughout the book by examples drawn from the Australian market, well-structured chapters, review questions at the end of each chapter, and a comprehensive glossary. I found this book to be an excellent read and a practical guide to the writing of options.