Put Option Writing Demystified by Paul D. Kadavy

This week's featured book on options trading:

Put Option Writing Demystified
by Paul D. Kadavy
Arrow Publications (June 2009)

From the publisher: Put Option Writing Demystified is the book devoted exclusively to the subject of generating double-digit income returns from a little-known, often misunderstood and conservative investment opportunity known as put option writing. In fact, it can be more conservative than simply owning stocks alone. And the good news is that this strategy works best during slow growth, flat or even slightly declining markets.

This book fully stands on its own, but it can also be viewed as a companion text to Covered Call Writing Demystified. These are the reasons:

• Put option writing and covered call writing have essentially the same reward and risk characteristics. When used as outlined in the book, they are very conservative (unlike many other uses of options).

• Investors using covered call writing will find opportunities to use put option writing to achieve similar double-digit investment results, but also to have the opportunity to purchase stocks or Exchange Traded Funds at a discount from their present value.