The Option Trader Handbook: Strategies and Trade Adjustments, 2nd 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.