Option theory and trading learning
Over the course of his successful twenty-plus-year career in the options market, he has trained many professional traders, as well as numerous active investors. Now, with Options Theory and Trading, he shares his extensive experience with you. Based on a proven option-trading course created by Ianieri, which follows a logical step-by-step progression, this book opens with an in-depth explanation of option terms and theory in Part One--because learning the language and understanding the theory is the foundation upon which successful option strategies are built.
Continuing along these lines, Ianieri takes the time to explore the unique risks and rewards of call and put options, and introduces you to the option pricing model, the "Greeks," and synthetic positions. In addition to this, you'll also discover the role of the "lean" in options trading and how to "roll" your position to establish a stream of income.
While Ianieri demonstrates how well options function in unison with a stock position--enhancing potential gains, providing profit protection, and limiting the risk of the entire investment--he also examines how they can be even more effective when traded against each other. In Part Three, you'll gain an in-depth understanding of how to use vertical, diagonal, and time spreads in this way, and discover how straddles and strangles--which both feature the use of options in unison with one other--can help you achieve strong premium collection.
Rounding out this detailed discussion of options is a close look at combination strategies. Part Four of Options Theory and Trading takes you through fully hedged strategies known as the Butterfly and the Condor, and offers practical advice on how and when to use them.
In an environment of increasing volatility, there's great risk of market corrections endangering the capital of individual investors around the world. What you need to achieve long-term success in today's market is the right guidance.
With Options Theory and Trading, you'll quickly discover how to use options to increase your portfolio's profit potential and reduce the risks you'll inevitably face.
Table of contents Preface. Premium and Time Decay. Intrinsic versus Extrinsic Value. Fundamentals of Pricing Models. Types of Pricing Models.
Inputs of the Options Pricing Model. Outputs of the Pricing Model. Foundations of the Strategy. Performance in Different Scenarios.
When to Use the Protective Put Strategy. When to Use the Protective Call Strategy. Spread Trading, Straddles, and Strangles. Construction of a Vertical Spread. Value and the Vertical Spread. Factors that Affect Spread Pricing. Time Decay and Volatility Trading Opportunities. An Imaginary Spread Scenario. Recap with Special Insights. Construction of the Time Spread. Behavior of the Spread. Effects of Stock Price on the Time Spread. Effects of Volatility on the Time Spread. Buyer Risk and Reward.
Seller Risk and Reward. When to Use the Diagonal Spread. What Is a Straddle? Factors that Affect Straddle Prices. What Is a Strangle? Factors that Affect Strangle Prices. Butterfly and Synthetic Positions. What Will a Butterfly Cost? Butterfly and the Greeks. Condors and the Greeks.
How Do We Use Condors? Book ratings by Goodreads. Goodreads is the world's largest site for readers with over 50 million reviews. They have a diametrically opposite view on markets.
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