The Option Trader Handbook Strategies and Trade Adjustments

by Jabbour, George; Budwick, Philip H.

• ISBN13: 9780470481615
• ISBN10: 0470481617
• Edition: 2nd
• Format: Hardcover
• Copyright: 2010-01-26
• Publisher: Wiley

Summary

Strategies, tools, and solutions for minimizing risk and volatility in option tradingAn 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 marketsIntended for both stock and option traders, this book will help you improve your overall trading skills and performance.

Author Biography

George M. Jabbour, PhD, is the Director of the Master of Science in Finance program at The George Washington University, as well as a professor of derivatives, financial engineering, and investments. Dr. Jabbour has published various articles in professional financial journals and regularly speaks at conferences in the United States and abroad regarding option pricing models, financial management, and risk management. He is also a managing director of Global Asset Investments, LLC, an asset management and derivatives consulting firm, and CEO of Global Finance Associates Inc., a financial training, consulting, and research company. Dr. Jabbour regularly conducts seminars in option trading and valuation, and is a very active equities and derivatives trader.

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.

Table of Contents

Preface to the First Edition

Preface to the Second Edition

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

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

Long Stock

Introduction

Protective Put

Call Replacement

Sell Covered Calls

Collars

Ratio Write

Call Ratio Spread

Call Calendar Spread

Short Stock

Introduction

Protective Call-Insurance

Put Replacement

Covered Puts

Short Collars

Put Ratio Write

Put Ratio Spread

Calls and Puts

Introduction

Long Call

Short Call

Long Put

Short Put

Spreads

Introduction

Bull Call Spreads/Bear Put Spreads

Bear Call Spreads/Bull Put Spreads

Calendar Spreads

Combinations

Introduction

Long Straddle

Short Straddle/Short Strangle

Index

Table of Contents provided by Publisher. All Rights Reserved.