The Option Trader Handbook: Strategies and Trade Adjustments (Wiley Trading) - Hardcover

Jabbour, George; Budwick, Phillip

Hardcover

ISBN 10: 0471567078 ISBN 13: 9780471567073

Publisher: Wiley, 2004

Synopsis

Strategies, tools, and proven solutions for minimizing risk and volatility in option trading
The Option Trader Handbook helps readers better understand trade management by providing a thorough compilation of the numerous trade adjustments, hedges, and enhancements that can be made to stock or option positions using derivatives.
Dr. George Jabbour is the Director of the Master of Science in Finance (MSF) Program at The George Washington University as well as a professor of derivatives, financial engineering and investments. Dr. Jabbour has published various articles in professional financial journals and regularly speaks at conferences in the United States and abroad regarding option pricing models, financial management, and risk management. He also is a managing director of Global Asset Investments, LLC, an asset management and derivative consulting firm, and CEO of Global Finance Associates, Inc., a financial training, consulting and research company. Dr. Jabbour regularly conducts seminars in option trading and valuation, and is a very active equity and derivative trader.
Philip Budwick has a law degree and a Master of Science in Finance and frequently writes articles on option trading strategies and investments. Mr. Budwick is a managing director of Global Asset Investments, LLC and a managing member of Budwick InvestmentGroup, LLC, an option trading and investment software firm. He also conducts discussion groups and offers option investment training through Option Trading Coach, LLC and is an active option and stock trader.

About this title

From the Inside Flap

Given the recent volatility in the markets over the past few years, there is a growing need for traders to learn how options can be used for better risk management. Using the right strategies and trade adjustments, creative investors can hedge or even boost their profits, limit their losses, and create risk-free trades. Although many investors understand how to trade stocks or options, very few know how to use options as a dynamic risk reduction and profile enhancement tool. Implementing these strategies requires more than just an understanding of the mechanics of trading, it requires ingenuity and imagination–as well as a comprehensive trading reference tool.

Designed as a resource for intermediate to advanced traders, The Option Trader Handbook teaches both the science and the art of trade management, and offers numerous strategies and techniques for minimizing risk and volatility. The authors, both recognized experts in the field, discuss stock and option positions and detail 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.

With this book as your guide, you will find sensible answers to questions such as:

• What happens if my stock or option position does not move exactly as planned?
• Is there a way for me to lock in unrealized profits or provide a hedge against further losses?
• How can I create risk-free trades?

In a logical, sequential order, the authors cover the principles of risk and trade management as well as the tools required to put them into practice, weaving them all together with a proven formula for successful trading and portfolio management.

An unparalleled resource for today’s volatile investment climate, The Option Trader Handbook offers:

• A detailed guide for better trade and portfolio management
• Numerous trade adjustments for long and short stock positions, calls and puts, spreads and combinations
• Specific trading examples with numerous charts and graphs to clearly demonstrate how each trade adjustment is done

By demonstrating how options can be used to hedge risks and boost overall returns, The Option Trader Handbook will become one of the most valuable assets in any trader’s portfolio.

From the Back Cover

Praise for The Option Trader Handbook

"Jabbour and Budwick’s unique approach to strategies and trading moves options analysis out of the laboratory and onto the painter’s canvas. Understanding this refreshingly new viewpoint is essential for any options trader looking to expand both his horizons and his wallet."
–William E. Seale, PhD
Principal and Chief Investment Officer, ProFund Advisors LLC

"The Option Trader Handbook is the best text available for those who desire detailed advice about how to manage positions with standard and advanced options strategies. The book is well worth reading due to its step-by-step focus on practical strategies and trade adjustments. Given the breadth and depth of the options positions covered, it will certainly serve as an important reference text in any trader’s library."
–Stephen D. Young
Vice President, Wachovia Capital Markets, LLC

Edition details

• Publisher: Wiley
• Publication date: 2004
• ISBN 10: 0471567078
• ISBN 13: 9780471567073
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 352