Synopsis:
The Options Playbook was created to demystify option trading and teach investors different option plays for all market conditions. No confusing jargon. No unnecessary mumbo-jumbo. Just clear, easy-to-understand explanations of more than 40 of the most popular option strategies broken down into a play-by-play format including:
Play Name: Long Call, Short Call Spread, Iron Condor, etc.
The Setup: The goals and reasons to run each play
Who Should Run It: Rookies, Veterans or All-Stars, based on degree of difficulty
When To Run It: Describes each play as bullish, bearish or neutral
The Strategy: A detailed overview of each strategy, their risks and the specific costs associated with multi-leg strategies.
For the first-time option trader The Options Playbook features a "Rookie's Corner," addressing the basic definitions and concepts you need to understand this market, tips to avoid common beginner's mistakes, and suggested strategies to "get your feet wet".
For more experienced option traders, an expanded section on implied volatility explains how this handy variable can be used to find the potential range of the stock over the options life. A detailed section on pricing variables (Greeks) helps you understand how an option's price is affected by changes in market conditions. You will also learn how time decay and a change in implied volatility can affect your trade after it's in place and how to recover if things don't go according to plan.
The Options Playbook features Options Guy Tips from TradeKing Senior Analyst Brian Overby. Like any good coach, Overby's handy insights help you put theory into successful real-world trading.
This expanded 2nd edition includes 10 new plays and 56 new pages of handy content describing a brief history of options, five common mistakes options traders make and how to avoid them, an expanded glossary, how to manage option positions by rolling to a different month and strike, to explaining the difference between index and stock options, managing early exercise and assignment and how to calculate position delta and use it to manage overall position risk of a multi-leg option strategy.
Options involve risk and are not suitable for all investors. It is possible to lose more money than invested. Before making any investment decisions, please read Characteristics and Risks of Standardized Options that accompanies The Options Playbook and available at: tradeking.com/ODD.
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About the Author:
Brian Overby is TradeKing'’s Senior Options Analyst. A veteran of the financial industry since 1992, Brian has served as an option trading specialist for Charles Schwab, a senior staff instructor for the Chicago Board Options Exchange (CBOE), and managed the training department for one of the world's largest market makers, Knight Trading Group. Brian has given over 1,000 seminars worldwide, written numerous articles on option trading and been interviewed by Bloomberg, CNBC, The Wall Street Journal, FOX Business and other financial media.
TradeKing was awarded the maximum five stars in customer service by SmartMoney Magazine in 2008 and 2009, based on mutual funds & investment products, banking services, trading tools, and research. SmartMoney is a registered trademark of SmartMoney, a joint publishing venture between Dow Jones & Company, Inc. and HearstSM Partnership.
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