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.
THE OPTION TRADER HANDBOOK
If you want to be a successful trader, you need to consistently improve your skills and never assume you know everything about the markets. That's why authors George Jabbour and Philip Budwick have returned with the second edition of The Option Trader Handbook.
Following the same structure of the first edition, this updated guide delves deeper into the mechanics of option pricing and trade adjustments to provide you with a new perspective on the art and science of option trading. Designed for both intermediate and advanced traders, this book skillfully highlights numerous strategies for minimizing risk and volatility; discusses stock and option positions; and details the various types of trade adjustments that can be made, what situations are appropriate for each adjustment, and the best time to make those adjustments.
An unparalleled resource for today's volatile investment climate, this Second Edition features fresh material that will help you hedge or even boost profits, limit losses, and create risk-free trades. Page by page, it offers in-depth insights and expanded coverage on:
- The nature of Implied Volatility (IV) and how it can change with respect to the market as a whole and to individual stocks
- The "Greeks" and how they can be used to make better trading decisions and reduce risk
- Implementing more sophisticated option spreads and combinations
- Numerous charts and graphs that clearly demonstrate how each trade adjustment is done
With even more tools and tips to improve your understanding of how options work and how to make better trading decisions, The Option Trader Handbook, Second Edition will become one of the most valuable assets in any trader's portfolio.