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. description
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 Brian Overby the author and founder of Options Playbook, Inc. 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. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (investorservices@theocc.com).
<span>A best-selling author and educator, Brian Overby has more than 30 years of experience in the financial services industry. Brian dedicates his time to helping independent investors hone their investing skills by understanding more advanced strategies such as options trading. Brian has conducted thousands of trading seminars worldwide, written hundreds of articles on investing, and is the author of the top-selling options book on Amazon, The Options Playbook. Brian served as an options trading specialist for Charles Schwab and, before that, held positions with the Chicago Board Options Exchange (CBOE) and Knight Trading Group, one of the world's largest market makers. A widely sought-after resource for his options trading knowledge and market insights, Brian has appeared in the Wall Street Journal, Barron's, Reuters, and Bloomberg, and has been a guest on CNBC Fast Money and Fox Business.</span><br /><span> </span><br /><span>
