The Option Trader Handbook: Strategies and Trade Adjustments

Abstract

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.