Equity and Index Options Explained

Preface: Trading Language and Products.

1 Option Basics.

2 Option Specifications.

3 Exercise and Assignment.

4 Option Uses.

5 Option Price and Value.

6 “Moneyness”.

7 Pricing Options.

8 Skew.

9 Option Pricing Revisited: the “Greeks”.

10 Basic Option Strategy.

11 Option Spreads.

12 The Collar (Fence).

13 Long Call Spreads (Bull Call Spreads).

14 Long Put Spreads (Bear Put Spreads).

15 Short Call Spreads (Bear Call Spreads).

16 Short Put Spreads (Bull Put Spreads).

17 Selling Naked Puts versus Selling Put Spreads.

18 Long Verticals versus Short Verticals.

19 Long Straddles.

20 Long Strangles.

21 Short Straddles.

22 The Iron Butterfly.

23 Short Strangles.

24 The Iron Condor.

25 Calendar Spreads.

26 Long Call Calendars.

27 Short Call Calendar Spreads.

28 Long Put Calendar Spreads.

29 Short Put Calendar Spreads.

30 Diagonal Spreads.

31 Yield Enhancement.

32 Gamma Trading.

33 Resources.

34 Summary.

Glossary.

Index.