The Option Trader Handbook. Strategies and Trade Adjustments. 2nd Edition. Wiley Trading

  • ID: 2241699
  • Book
  • 400 Pages
  • John Wiley and Sons Ltd
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THE OPTION TRADER HANDBOOK

If you want to be a successful trader, you need to consistently improve your skills and never assume you know everything about the markets. That′s why authors George Jabbour and Philip Budwick have returned with the second edition of The Option Trader Handbook.

Following the same structure of the first edition, this updated guide delves deeper into the mechanics of option pricing and trade adjustments to provide you with a new perspective on the art and science of option trading. Designed for both intermediate and advanced traders, this book skillfully highlights numerous strategies for minimizing risk and volatility; discusses stock and option positions; and details the various types of trade adjustments that can be made, what situations are appropriate for each adjustment, and the best time to make those adjustments.

An unparalleled resource for today′s volatile investment climate, this Second Edition features fresh material that will help you hedge or even boost profits, limit losses, and create risk–free trades. Page by page, it offers in–depth insights and expanded coverage on:

  • The nature of Implied Volatility (IV) and how it can change with respect to the market as a whole and to individual stocks
  • The "Greeks" and how they can be used to make better trading decisions and reduce risk
  • Implementing more sophisticated option spreads and combinations
  • Numerous charts and graphs that clearly demonstrate how each trade adjustment is done

With even more tools and tips to improve your understanding of how options work and how to make better trading decisions, The Option Trader Handbook, Second Edition will become one of the most valuable assets in any trader′s portfolio.

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Preface to the First Edition.

Preface to the Second Edition.

CHAPTER 1 Trade and Risk Management.

Introduction.

The Philosophy of Risk.

Truth About Reward.

Risk Management.

Trade Management.

Trading as a Business.

SCORE—The Formula for Trading Success.

CHAPTER 2 Tools of the Trader.

Introduction.

Option Value.

Option Pricing.

Option Greeks and Risk Management.

Time Decay.

Delta/Gamma.

Implied Volatility.

Synthetic Positions.

Basic Strategies.

Basic Spreads and Combinations.

Advanced Spreads.

The Greeks and Spread Trades.

Valuable Derivative Traders Program.

Introduction to Trade Adjustments.

CHAPTER 3 Long Stock.

Introduction.

Protective Put.

Call Replacement.

Sell Covered Calls.

Collars.

Ratio Write.

Short Straddle/Short Strangle.

Call Ratio Spread.

Call Calendar Spread.

CHAPTER 4 Short Stock.

Introduction.

Protective Call—Insurance.

Put Replacement.

Covered Puts.

Short Collars.

Put Ratio Write.

Put Ratio Spread.

CHAPTER 5 Calls and Puts.

Introduction.

Long Call.

Short Call.

Long Put.

Short Put.

CHAPTER 6 Spreads.

Introduction.

Bull Call Spreads/Bear Put Spreads.

Bear Call Spreads/Bull Put Spreads.

Calendar Spreads.

CHAPTER 7 Combinations.

Introduction.

Long Straddle.

Long Strangle.

Short Straddle/Short Strangle.

Index.

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George Jabbour
Philip H. Budwick
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