The Option Trader Handbook
Strategies and Trade Adjustments
Wiley Trading Series
2. Auflage Januar 2010
400 Seiten, Hardcover
Wiley & Sons Ltd
Strategies, tools, and solutions for minimizing risk and volatility in option trading
An intermediate level trading book, The Option Trader Handbook, Second Edition provides serious traders with strategies for managing and adjusting their market positions. This Second Edition features new material on implied volatility; Delta and Theta, and how these measures can be used to make better trading decisions. The book presents the art of making trade adjustments in a logical sequence, starting with long and short stock positions; moving on to basic put and call positions; and finally discussing option spreads and combinations.
* Covers different types of underlying positions and discusses all the possible adjustments that can be made to that position
* Offers important insights into more complex option spreads and combinations
* A timely book for today's volatile markets
Intended for both stock and option traders, this book will help you improve your overall trading skills and performance.
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.
Philip H. Budwick, MsF, is the Director of the Capital Markets Trading Room at The George Washington University School of Business and frequently writes articles on option trading strategies and investments. Mr. Budwick is a Managing Director of Global Asset Investments, LLC, an asset management and derivatives consulting firm, and is an active option and stock trader. He has a law degree and a master of science in finance and teaches classes in portfolio management.
