Your Options Handbook: The Practical Reference and Strategy Guide to Trading Options

Front Cover
John Wiley & Sons, Apr 5, 2011 - Business & Economics - 432 pages
A comprehensive yet simplified guide to the complex world of options investing and risk management

Before trading derivatives, one needs to understand the secrets and mechanics behind the options market. Your Options Handbook: The Practical Reference and Strategy Guide to Trading Options offers a straightforward, practical explanation of the options marketplace, including its origins, the mechanics of the market, and how to profit from trading options.

  • Walks you through the stock and option markets from a professional's perspective, but uses plain language and simple analogies
  • Discusses different trading strategies based upon whether one's opinion of the market is bullish, bearish, or neutral
  • Details market players, useful tips, and trading psychology, and explains how options are priced

Options are a versatile trading instrument that typically cost less and can have lower risk than stocks. They also offer investors a unique edge and lucrative opportunities that are not available to stock only traders. Your Options Handbook helps investors fully understand the options market, allowing them to enter the sector with greater ease.

 

Contents

Foreword
Acknowledgments xxvii
Sectors and Industries 9
Final Thoughts 16
Key Indicators to Watch 27
Final Thoughts 43
Digesting the News 57
Techniques
Long Put 181
Basic Stock and Options Spread 195
The Advanced
Butterflies versus Condors 281
Final Thoughts 309
Synthetics and More on PutCall Parity 316
Final Thoughts 336
What Is Psych Cap? 345

The Basics 114
Trading OptionsOrder Types 122
Exercise and Assignment 128
What Is Triple Witching? Or Quadruple Witching 134
Final Thoughts 156
Covered Call BuyWrite 171
Strategies and Tactics for Large Psych Cap Balances 352
About the Contributor 359
Notes 383
About the Author 389
Copyright

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About the author (2011)

JARED A. LEVY got his start trading as an options market maker and specialist in the pits of the Philadelphia and American Stock Exchanges in the '90s. Now as an exclusive CNBC contributor, he offers his commentary to the world as part of CNBC's Fast Money team and appears on several programs throughout the network. Jared is also featured and quoted in numerous industry publications both online and in print. He has been featured on Bloomberg, Fox, and several other radio and TV networks over the years. In 2006, he won an Emmy for his daily video, "Trader Cast." More recently, he served as the Senior Derivatives Specialist for PEAK6 Investments, L.P., and is currently an editor for Taipan Publishing Group.

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