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

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Edition: 1st
Format: Hardcover
Pub. Date: 2011-04-05
Publisher(s): Wiley
List Price: $63.62

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Summary

Before you trade derivatives, you need to know where they derive their prices from. In Your Options Playbook, you will learn the mechanics of the market and how to profit from trading options. The book is a straightforward and practical explanation of the options market and its origins. Author Jared Levy discusses the functions of the exchanges and how they work. Using plain language and simple analogies, he walks the reader through the market- the players and pricing. After delving into the basics, Levy provides you with the strategies and analysis to take advantage of the market.Your Options Playbook also provides trading strategies based on your trading opinions and types- from neutral to bullish or bearish. You choose what 2018bet' you want to make based upon the facts presented and the opinion you have moving forward. Each Strategy will have its characteristics listed at the beginning of its section and several specific variations of parameters depending on what the viewers' opinion is not only about the stock, but about other factors, including risk, the overall market and volatility.

Author Biography

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.

Through his many seminars and courses, Jared Levy has educated tens of thousands of investors on how to successfully and consistently trade and invest for a living, while keeping risk low. He teaches a practical, straightforward approach to investing that involves analyzing equities, derivatives, and the markets as a whole, as well as both simple and complex strategies and the use of diverse instruments.

Table of Contents

Forewordp. xi
Prefacep. xv
Acknowledgmentsp. xxvii
Market Basics and Market Mechanics: What Is Going On and How Does It All Work?p. 1
The Marketsp. 1
Sectors and Industriesp. 9
ETFs-A Different Kind of Investmentp. 12
Final Thoughtsp. 16
Data That Moves the Markets: The First Step in Your Analysisp. 17
Data and Sentimentp. 18
Economists, Predictions, and Indicatorsp. 18
Economic Indicatorsp. 21
Key Indicators to Watchp. 27
Final Thoughtsp. 43
Fundamental and Technical Stock Analysis and Tools: The Second Step in Your Analysisp. 45
Introduction to Fundamental Analysisp. 46
Digesting the Newsp. 57
Cheap versus Valuep. 61
Mergers and Acquisitions for the Everyday Options Traderp. 64
The Wisdom (or Lack Thereof) of Crowdsp. 65
Trading Tactics and Technical Analysisp. 67
Plans of Attackp. 93
New Trader Tipsp. 101
Top 10 Things Professionals Do That the Average Retail Trader Doesn'tp. 104
Final Thoughtsp. 106
Options Basics: Techniques and Fundamentals to Master Before Applying Any Options Strategyp. 107
The Oracle of Omaha Did It, Why Can't I?p. 111
The Basicsp. 114
Trading Options-Order Typesp. 122
Options Expiration in Detailp. 126
Exercise and Assignmentp. 128
When Should You Exercise an Option Early?p. 132
What Is Triple Witching? (Or Quadruple Witching)p. 134
Final Thoughtsp. 137
The Greeks: The Forces That Influence Options' Pricesp. 139
Deltap. 139
Final Thoughtsp. 156
Strategy: The Basic Options Tradesp. 159
Basic Single Options Strategiesp. 160
The Long Callp. 160
Covered Call (Buy-Write)p. 171
Buy-Write versus Covered Callp. 175
Long Putp. 181
Basic Stock and Options Spreadp. 195
Final Thoughtsp. 208
Strategy: The Basic Spread Tradesp. 209
Vertical Spreads in Depthp. 209
The Four Basic Vertical Spreads-Basic Characteristics and Behaviorp. 214
Credit Spreads versus Debit Spreadsp. 216
Credit Vertical Spreadsp. 219
Debit Vertical Spreadsp. 236
Buying a Put Spread (Bear Put Spread)p. 237
Buying a Call Spread (Bull Call Spread)p. 242
Market Direction Neutral Spread Strategiesp. 257
Final Thoughtsp. 271
Strategy: The Advanced Option Spreadsp. 273
Market Neutral, Volatility, and Earnings Spread Strategiesp. 273
Butterflies versus Condorsp. 281
Iron Spreadsp. 285
Iron Butterfly versus Iron Condorp. 286
Final Thoughtsp. 309
Advanced Conceptsp. 311
Put-Call Parity, Interest Rates, Dividends, and Forwardsp. 312
Synthetics and More on Put-Call Parityp. 316
Final Thoughtsp. 336
A Revolutionary Approach to the Mind Games of the Markets: Understand Why You Need Emotions to Trade Wellp. 337
Trading Is Like Weather Forecastingp. 338
What Is Psych Cap?p. 345
Strategies and Tactics for Large Psych Cap Balancesp. 352
About the Contributorp. 359
Turning Your Trading into a Businessp. 361
Learning the Dollarp. 362
Educationp. 362
The Formative Processp. 363
Tips and Formulas for Budgetary Successp. 364
Setting Up a Legal Entityp. 366
Guidelines, Indicators, and Birds of Preyp. 371
Final Thoughtsp. 381
About the Contributorp. 381
Notesp. 383
About the Authorp. 389
Indexp. 391
Table of Contents provided by Ingram. All Rights Reserved.

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