Option Spread Trading

Option Spread Trading

Author: Russell Rhoads

Publisher: John Wiley & Sons

Published: 2011-01-11

Total Pages: 294

ISBN-13: 0470618981

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A practical guide to unlocking the power of option spreads When dealing with option spreads your looking to purchase one option in conjunction with the sale of another option. If managed properly, these spreads can provide experienced investors with the potential for large returns without undertaking a great deal of risk. Option Spread Trading provides a comprehensive, yet easy-to-understand explanation of option spreads, and shows you how to select the best spread strategy for any given market outlook. Along the way, author Russell Rhoads discusses spread strategies that can be used to profit from a strong up or down directional move in a stock, a stagnant market, or a highly volatile market. He also details how you can harness the leverage of options to create a low-risk position that provides the potential for a big profit. All manner of spreads are covered, from calendar and horizontal spreads to vertical and diagonal spreads Highlights how you can monitor and adjust an existing spread position and provides tips on how to exit a spread trade Includes exercises and examples to test and reinforce your knowledge of the concepts presented Option spread trading has become increasingly popular with active traders and investors. Gain a better understanding of this powerful approach with Option Spread Trading as your guide.


Option Spread Strategies

Option Spread Strategies

Author: Anthony J. Saliba

Publisher: John Wiley & Sons

Published: 2010-05-20

Total Pages: 292

ISBN-13: 0470885246

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Spread trading—trading complex, multi-leg structures--is the new frontier for the individual options trader. This book covers spread strategies, both of the limited-risk and unlimited-risk varieties, and how and when to use them. All eight of the multi-leg strategies are here: the covered-write, verticals, collars and reverse-collars, straddles and strangles, butterflies, calendar spreads, ratio spreads, and backspreads. Vocabulary, exercises and quizzes are included throughout the book to reinforce lessons. Saliba, Corona, and Johnson are the authors of Option Strategies for Directionless Markets.


The Complete Book of Option Spreads and Combinations

The Complete Book of Option Spreads and Combinations

Author: Scott Nations

Publisher: John Wiley & Sons

Published: 2014-10-08

Total Pages: 278

ISBN-13: 1118806204

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Get a handle on option spreads to hike profit and squash loss The Complete Book of Option Spreads and Combinations is the definitive educational resource and reference guide for using option spreads and other common sense option strategies. This useful guide shows readers how to select the right strategy for their market outlook and risk/reward comfort level by describing the inner workings of each strategy and how they are affected by underlying market movements, implied volatility, and time decay. Even more importantly, readers will understand where each strategy performs well, and the market conditions where each should be avoided. Once the proper strategy is selected, readers will learn how to identify the best options to use based on "moneyness" and time to expiration. The companion website features tools including an option pricing tool and implied volatility calculator to help all traders implement these concepts effectively. There are many different types of spreads, and while less risky than other option strategies in general, they are more complex, with more variables to monitor. This guide serves as a handbook for the trader wanting to exploit options to the greatest possible benefit. Generate monthly income by selling covered strangles Use call spreads to recover from a losing stock position Protect an existing stock position using put diagonals Discover the best strategies for directional market plays Option spreads are a great tool for traders who would rather be an option seller but who need to limit their risk. The Complete Book of Option Spreads and Combinations identifies those strategies that benefit from option erosion but that limit risk. If managed properly, spreads can provide both novice and experienced investors with the potential for a large return while limiting risk. Electronic trading platforms and reduced brokerage commissions have increased option spread trading, which should occupy a spot in every savvy investor's toolkit. Comprehensive and authoritative, The Complete Book of Option Spreads and Combinations provides a valuable manual and lasting reference.


The Bible of Options Strategies

The Bible of Options Strategies

Author: Guy Cohen

Publisher: Pearson Education

Published: 2005

Total Pages: 395

ISBN-13: 0131710664

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Presents today's most effective strategies for trading options :how and why they work, when they're appropriate, when they're inappropriate, and how to use each one responsibly and with confidence. This book will help you identify and implement the optimal strategy for every opportunity, trading environment, and goal.


Option Strategies for Directionless Markets

Option Strategies for Directionless Markets

Author: Anthony J. Saliba

Publisher: John Wiley & Sons

Published: 2008-03-27

Total Pages: 210

ISBN-13: 1576602494

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Making great trades in a directionless market can be a challenge, and directionless markets occur more frequently than bull and bear markets combined. Options pioneer Anthony J. Saliba provides the tools and tactics needed to take advantage of a sideways market. Saliba focuses on strategies in the butterfly family of options: butterflies, condors, and iron butterflies, showing how to the use these sophisticated tools in directionless markets. This hands-on guide illustrates numerous market scenarios to show you step-by-step how and when to apply these butterfly strategies. You’ll find out how to identify, enter, manage, and exit a trade. Exercises and quizzes test your comprehension to make sure you have the knowledge to tackle directionless markets.


Proven Option Spread Trading Strategies

Proven Option Spread Trading Strategies

Author: Billy Williams

Publisher: Blue Zen Publishing

Published: 2014-01-02

Total Pages: 160

ISBN-13: 9780615945996

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An 1/8th of an inch doesn't sound like much of an edge but in the Olympic 100 meter sprint it's the difference between taking home the gold medal or the silver medal. Like the world of sports, successful option trading comes down to a few simple edges that can be the difference between making the lion's share of profits or just ending up the lion's lunch on Wall Street. As a 25-year veteran of the stock and options markets as well as a frequent contributor to Futures Magazine, Traders.com Advantage, MoneyMorning.com, and other financial publications, I know from experience that the leverage and risk control provided by option trading strategies is unmatched. The dirty secret that most option trading books won't tell you is that most options end up expiring worthless. Worse, even if you're right about the direction and time your option trade perfectly, a rise or fall in the option's volatility can still cause a loss. And, for those who are trying to build up to option trading in your spare time, it can be tough trying to watch the markets from open-to-close when you're juggling work, family, and other responsibilities. To succeed, you need to arm yourself with strategies that put the odds in your favor, not work against you. The good news is that options have the flexibility to craft easy option spread positions that profit from time decay, not just price movement. Even better, using these option strategies, you can enjoy more winning trades, greater consistency in performance, and a smoother equity curve by making time decay work for you instead of against you. In this book, you'll learn: * How to pick the best trades and in what markets. * What tools you're going to need. * Detail how simple the strategies are and how to use them. * Simple tools to help you make your trade decisions. * Which moving averages help you determine the trend. * What simple indicators to use. * How to know which option to sell so that you make the most money. * How to know which option to trade to lower our risk and increase winning percentages. * What to do if things don't go as planned (this is going to be your backup plan to keep you from suffering unnecessary losses). * Risk management strategies to help you grow your account while controlling your risk. * And, alot more. Start today in learning how to make greater and more consistent returns by going to the orange buy button in the upper right-hand side side of the page to download this book and get started now!


Get Rich With Options

Get Rich With Options

Author: Lee Lowell

Publisher: John Wiley & Sons

Published: 2007-05-23

Total Pages: 242

ISBN-13: 0470126817

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In order to survive and thrive in today's financial markets, you must seriously consider the use of options in your investment endeavors. Options allow you to reap the same benefits as an outright stock or commodity trade, but with less risk and less money on the line. The truth is, you can achieve everything with options that you would with stocks or commodities?at less cost?while gaining a much higher percentage return on your invested dollars. After numerous years as a market maker in the trenches of the New York Mercantile Exchange, few analysts know how to make money trading options like author Lee Lowell. In this well-rounded resource, Lowell shows both stock and commodity option traders exactly what works and what doesn't. Filled with in-depth insight and expert advice, Get Rich with Options provides you with the knowledge and strategies needed to achieve optimal results within the options market. The book quickly covers the basics?how options are priced, strike price selection, the use of Delta, and using volatility to one's advantage?before moving on to the four options trading strategies that have helped Lowell profit in this arena time and again: buying deep-in-the-money call options, selling naked puts, selling option credit spreads, and selling covered calls. Using these strategoes decisively, he says, is the fastest route to riches in the options trading game. Get Rich with Options is packed with real-life examples of actual trades and detailed discussions of how options can be used as a hedging, speculating, or income-producing tool. You'll learn how to set up a home business with the best options trading software, tools, and Web sites. And you'll begin to see options in a whole new light and discover how to become part of a small group of investors who consistently win.


Protective Options Strategies

Protective Options Strategies

Author: Ernie Zerenner

Publisher: Marketplace Books

Published: 2008-11

Total Pages: 236

ISBN-13: 9781592803422

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"How many stock positions have you entered after meticulous analysis, only to have the stock move in the opposite direction that you anticipated?" It has happened to every trader -- "the stock that got away." Now you can prevent it from happening again. The secret to minimizing your risk and meeting your goals is the use of the protective strategies you will find in this easy-to-use guide.


The Option Trader Handbook

The Option Trader Handbook

Author: George Jabbour

Publisher: John Wiley & Sons

Published: 2010-01-06

Total Pages: 402

ISBN-13: 0470579978

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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.