{"product_id":"how-to-price-and-trade-options-isbn-9781118871140","title":"How to Price and Trade Options","description":"\u003cp\u003e\u003cb\u003eSelect and execute the best trades—and reduce risk\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRather than teaching options from a financial perspective, \u003ci\u003eHow to Price and Trade Options: Identify, Analyze, and Execute the Best Trade Probabilities\u003c\/i\u003e goes back to the Nobel Prize-winning Black-Scholes model. Written by well-known options expert Al Sherbin, it looks at the basis for probability theory in option trading and explains how to put the odds in your favor when trading options. Inside, you'll discover how anyone can \"operate their own casino\" if they know how through proper option strategies. Plus, a supplemental website includes videos that walk you through various probability scenarios, pre-formatted spreadsheets, and code.\u003c\/p\u003e \u003cp\u003eAll investors should have a portion of their portfolio set aside for option trades. Not only do options provide great opportunities for leveraged plays, they can also help you earn larger profits with a smaller amount of cash outlay. With the help of this book, traders, active investors, and self-directed investors of all stripes will learn how simple it can be to deploy probability-based trading strategies.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eTeaches both defined and undefined risk strategies\u003c\/li\u003e \u003cli\u003eUtilizes simple cost basis reduction strategies to enhance investment returns\u003c\/li\u003e \u003cli\u003eDraws on unique research studies\u003c\/li\u003e \u003cli\u003eDiscusses volatility to include both historical (realized) and implied volatility: the interplay between the two is a key piece of information overlooked by option traders\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIf you're a trader of any level and want to make the best trades possible, this book has you covered.\u003c\/p\u003e \u003cp\u003eIntroduction xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Why Trade Options? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStrategic without Being Directional 2\u003c\/p\u003e \u003cp\u003eA Word about Leverage 2\u003c\/p\u003e \u003cp\u003eOptions are a Decaying Asset 5\u003c\/p\u003e \u003cp\u003eInsurer or Insured? 6\u003c\/p\u003e \u003cp\u003eProbability of Making Money 6\u003c\/p\u003e \u003cp\u003eMarket Efficiency 7\u003c\/p\u003e \u003cp\u003eTired, Worn‐Out Metaphors 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 What to Look for in a Broker 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBrokerages versus Banks 11\u003c\/p\u003e \u003cp\u003eDepth of a Broker’s Pockets 12\u003c\/p\u003e \u003cp\u003eTrading Risk Management 13\u003c\/p\u003e \u003cp\u003eLearning from Recent Events 14\u003c\/p\u003e \u003cp\u003eAccount Types 14\u003c\/p\u003e \u003cp\u003eCommissions 16\u003c\/p\u003e \u003cp\u003eInterest Rates 18\u003c\/p\u003e \u003cp\u003eStock Borrow and Loan 19\u003c\/p\u003e \u003cp\u003eTrading Platforms 22\u003c\/p\u003e \u003cp\u003eConclusion 24\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Building the Foundation 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOption Pricing Models 26\u003c\/p\u003e \u003cp\u003eOption Pricing Model Inputs 27\u003c\/p\u003e \u003cp\u003eHistorical Data as Input into the Implied Volatility of an Underlying 29\u003c\/p\u003e \u003cp\u003eImplied Volatility as a Predictor of Stock Movement and Probabilities 30\u003c\/p\u003e \u003cp\u003eThe Distribution Curve 31\u003c\/p\u003e \u003cp\u003eBreakout Stocks 45\u003c\/p\u003e \u003cp\u003eActual versus Historical Distribution Curves 50\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Trade Probabilities: What to Look For 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Results 59\u003c\/p\u003e \u003cp\u003eHow to Calculate Option Probabilities 63\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Choosing Your Trades 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChoosing Your Underlying 67\u003c\/p\u003e \u003cp\u003eMaking an Assumption 78\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Choosing a Strategy 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefined Risk Trades 85\u003c\/p\u003e \u003cp\u003eCredit Spreads 85\u003c\/p\u003e \u003cp\u003eDebit Spreads 88\u003c\/p\u003e \u003cp\u003eButterfly 89\u003c\/p\u003e \u003cp\u003eIron Condor 91\u003c\/p\u003e \u003cp\u003eCalendar Spreads 92\u003c\/p\u003e \u003cp\u003eUndefined Risk Trades 96\u003c\/p\u003e \u003cp\u003eThe Straddle 97\u003c\/p\u003e \u003cp\u003eThe Strangle 97\u003c\/p\u003e \u003cp\u003eShort Naked Puts 98\u003c\/p\u003e \u003cp\u003eRatio Spreads and Back Spreads 100\u003c\/p\u003e \u003cp\u003eWhat Time to Expiration Should My Trades Have? 103\u003c\/p\u003e \u003cp\u003eTrading Earnings Announcements 105\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Exiting Trades 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Variables 123\u003c\/p\u003e \u003cp\u003eThe Kelly Criterion 125\u003c\/p\u003e \u003cp\u003eMorning Routine 130\u003c\/p\u003e \u003cp\u003eTo Log Your Trades or Not to Log Your Trades 135\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Executing Your Trades 141\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOrder Types 142\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Portfolio Management 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTwo Types of Risk 154\u003c\/p\u003e \u003cp\u003eThe Goal: Diversification—Minimizing Unique Risk 155\u003c\/p\u003e \u003cp\u003eThe Methods: Correlation and Number of Positions 156\u003c\/p\u003e \u003cp\u003eIdentifying and Mitigating Systematic Risk 163\u003c\/p\u003e \u003cp\u003eTrade Sizing 180\u003c\/p\u003e \u003cp\u003eEarly Exercise 183\u003c\/p\u003e \u003cp\u003eConclusion 189\u003c\/p\u003e \u003cp\u003eAbout the Website 191\u003c\/p\u003e \u003cp\u003eAbout the Author 193\u003c\/p\u003e \u003cp\u003eIndex 195\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eAL SHERBIN\u003c\/b\u003e has been a professional options trader for over 26 years without a single losing year and is the Managing Member of Al on Options, LLC.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eEXECUTE THE BEST OPTIONS TRADES–AND REDUCE RISK\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e\u003ci\u003eHow to Price and Trade Options\u003c\/i\u003e taps into the power of the Nobel Prize-winning Black-Scholes model to offer a winning strategy for investing in the options market. Written by options expert Al Sherbin, this invaluable resource looks at the basis for probability theory in options trading and explains how to stack the odds in your favor. The companion website includes videos that walk you through various probability scenarios, pre-formatted spreadsheets, and code.  \u003c\/p\u003e\u003cp\u003eNo matter what your level of investing experience—from novice to Wall Street professional—\u003ci\u003eHow to Price and Trade Options\u003c\/i\u003e offers the information and techniques needed to enhance your portfolio with savvy options trades. Drawing on unique research studies, Sherbin reviews both defined and undefined risk strategies and shows how to use simple cost basis reduction techniques to enhance investment returns.  \u003c\/p\u003e\u003cp\u003eWith Al Sherbin as your guide, you will learn how simple it can be to deploy probability-based trading strategies.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989382119653,"sku":"NP9781118871140","price":73.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118871140.jpg?v=1761783893","url":"https:\/\/k12savings.com\/es\/products\/how-to-price-and-trade-options-isbn-9781118871140","provider":"K12savings","version":"1.0","type":"link"}