{"product_id":"option-spread-trading-isbn-9780470618981","title":"Option Spread Trading","description":"A practical guide to unlocking the power of option spreads  \u003cp\u003eWhen dealing with option spreads your looking to purchase one option in conjunction with the sale of another option. If managed properly, these spreads can provide experienced investors with the potential for large returns without undertaking a great deal of risk.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eOption Spread Trading\u003c\/i\u003e provides a comprehensive, yet easy-to-understand explanation of option spreads, and shows you how to select the best spread strategy for any given market outlook. Along the way, author Russell Rhoads discusses spread strategies that can be used to profit from a strong up or down directional move in a stock, a stagnant market, or a highly volatile market. He also details how you can harness the leverage of options to create a low-risk position that provides the potential for a big profit.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eAll manner of spreads are covered, from calendar and horizontal spreads to vertical and diagonal spreads\u003c\/li\u003e \u003cli\u003eHighlights how you can monitor and adjust an existing spread position and provides tips on how to exit a spread trade\u003c\/li\u003e \u003cli\u003eIncludes exercises and examples to test and reinforce your knowledge of the concepts presented\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eOption spread trading has become increasingly popular with active traders and investors. Gain a better understanding of this powerful approach with \u003ci\u003eOption Spread Trading\u003c\/i\u003e as your guide.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Essential Option Knowledge 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Option Basics 1\u003c\/p\u003e \u003cp\u003eIn-At-Out of the Money 5\u003c\/p\u003e \u003cp\u003eIntrinsic and Time Value 6\u003c\/p\u003e \u003cp\u003eSpread Basics 8\u003c\/p\u003e \u003cp\u003eThe Greeks 9\u003c\/p\u003e \u003cp\u003ePayoff Tables and Diagrams 10\u003c\/p\u003e \u003cp\u003eOption Pricing Calculators 12\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Spreads Using an Underlying Security 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCovered Call 15\u003c\/p\u003e \u003cp\u003eCovered Call Using LEAPSQR 22\u003c\/p\u003e \u003cp\u003eSystematic Covered Call Strategies 25\u003c\/p\u003e \u003cp\u003eCash-Secured Put 26\u003c\/p\u003e \u003cp\u003eSystematic Cash-Secured Put 31\u003c\/p\u003e \u003cp\u003eProtective Put 32\u003c\/p\u003e \u003cp\u003eThe Collar 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Synthetic Positions 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePut-Call Parity 39\u003c\/p\u003e \u003cp\u003eSynthetic Long Positions 40\u003c\/p\u003e \u003cp\u003eSynthetic Short Positions 44\u003c\/p\u003e \u003cp\u003eArbitrage in Put-Call Parity 50\u003c\/p\u003e \u003cp\u003eIndividuals Using Put-Call Parity 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 The Greeks 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice-Related Greeks 55\u003c\/p\u003e \u003cp\u003eTime-Related Greek 61\u003c\/p\u003e \u003cp\u003eVolatility-Related Greek 65\u003c\/p\u003e \u003cp\u003eInterest Rate-Related Greek 67\u003c\/p\u003e \u003cp\u003eConclusion 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Straddles 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong Straddle Mechanics 72\u003c\/p\u003e \u003cp\u003eShort Straddle 81\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Strangles 89\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong Strangle Mechanics 89\u003c\/p\u003e \u003cp\u003eShort Strangle Mechanics 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Bull Spreads 107\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBull Put Spread 107\u003c\/p\u003e \u003cp\u003eBull Call Spread 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Bear Spreads 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBear Call Spread 121\u003c\/p\u003e \u003cp\u003eBear Put Spread 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Butterfly Spreads 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction to Butterfly Spreads 136\u003c\/p\u003e \u003cp\u003eLong Call Butterfly 136\u003c\/p\u003e \u003cp\u003eLong Put Butterfly 139\u003c\/p\u003e \u003cp\u003eIron Butterfly 142\u003c\/p\u003e \u003cp\u003eShort Straddle Comparison 146\u003c\/p\u003e \u003cp\u003eShort Call Butterfly 149\u003c\/p\u003e \u003cp\u003eShort Put Butterfly 152\u003c\/p\u003e \u003cp\u003eReverse Iron Butterfly 154\u003c\/p\u003e \u003cp\u003eReverse Iron Butterfly versus Straddle 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Condor Spreads 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction to Condor Spreads 159\u003c\/p\u003e \u003cp\u003eLong Call Condor 160\u003c\/p\u003e \u003cp\u003eLong Put Condor 163\u003c\/p\u003e \u003cp\u003eIron Condor 166\u003c\/p\u003e \u003cp\u003eIron Condor versus Short Strangle 170\u003c\/p\u003e \u003cp\u003eShort Condor Spreads 172\u003c\/p\u003e \u003cp\u003eReverse Iron Condor 176\u003c\/p\u003e \u003cp\u003eReverse Iron Condor versus Long Strangle 179\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Ratio Spreads 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCall Ratio Spread 184\u003c\/p\u003e \u003cp\u003ePut Ratio Spread 189\u003c\/p\u003e \u003cp\u003eRatio Spread Comparisons 192\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Backspreads 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCall Backspread 199\u003c\/p\u003e \u003cp\u003ePut Backspread 203\u003c\/p\u003e \u003cp\u003eBackspread Comparisons 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 The Stock Repair Strategy 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDoubling Down on a Position 214\u003c\/p\u003e \u003cp\u003eThe Stock Repair Trade 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 14 Calendar Spreads 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTime Value Effect 220\u003c\/p\u003e \u003cp\u003eLong Call Calendar 221\u003c\/p\u003e \u003cp\u003eLong Put Calendar 224\u003c\/p\u003e \u003cp\u003eCombined Calendar Spread 227\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 15 Diagonal Spreads 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCall Diagonal Spread 231\u003c\/p\u003e \u003cp\u003eLEAPS Call Diagonal Spread 234\u003c\/p\u003e \u003cp\u003ePut Diagonal Spread 237\u003c\/p\u003e \u003cp\u003eLEAPS Put Diagonal Spread 239\u003c\/p\u003e \u003cp\u003eDouble Diagonal Spread 241\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 16 Delta Neutral Trading 245\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDelta Review 245\u003c\/p\u003e \u003cp\u003eDelta-Neutral Positions 246\u003c\/p\u003e \u003cp\u003eGamma 250\u003c\/p\u003e \u003cp\u003eMarket Maker Trading 251\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 17 Executing a Spread Trade 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExecuting a Stock or Option Trade 256\u003c\/p\u003e \u003cp\u003eA Single Option Spread 258\u003c\/p\u003e \u003cp\u003eA Spread with Two Options 260\u003c\/p\u003e \u003cp\u003eA Spread with Multiple Legs 261\u003c\/p\u003e \u003cp\u003eLegging into a Spread Trade 265\u003c\/p\u003e \u003cp\u003eAbout the Author 269\u003c\/p\u003e \u003cp\u003eIndex 271\u003c\/p\u003e \t \u003cp\u003e\u003cb\u003eRUSSELL RHOADS\u003c\/b\u003e is an instructor for the Options Institute at the Chicago Board Options Exchange. He conducts about ninety classes a year and, in addition, conducts webinars on behalf of the CBOE and a variety of brokerage firms. Rhoads's twenty-year trading career included positions at a variety of trading firms and hedge funds. His background includes trading and analysis, and he is author of \u003ci\u003eCandlestick Charting For Dummies.\u003c\/i\u003e Rhoads graduated the University of Memphis with a MS in finance and has a master's certificate in financial engineering from the Illinois Institute of Technology.   The options industry has experienced incredible growth in recent years. With multiple exchanges now vying for orders from the public, the speed of execution has increased while the cost of trading options has decreased. This has leveled the playing field to the point where individual traders can not only compete in the options arena, but also capture consistent profits.  \u003c\/p\u003e\u003cp\u003eNobody understands this better than author Russell Rhoads—an instructor for the Options Institute at the CBOE—who has helped thousands of people successfully incorporate various options strategies into their everyday trading endeavors.\u003c\/p\u003e \u003cp\u003eNow, with \u003ci\u003eOption Spread Trading\u003c\/i\u003e, he shares his extensive experience in this field and reveals what it takes to put the power of option spreads to work for you. Before getting into a detailed discussions of spread trades, this reliable resource opens with a quick overview of essential option knowledge, lays out the mechanics of putting on very basic positions involving two trading instruments, explores different approaches to creating similar payoffs, and covers the \"Greeks.\"\u003c\/p\u003e \u003cp\u003eFrom there, you'll be introduced to a variety of spread strategies, with each chapter focusing on a specific one, and discover how to choose and use the best strategies for certain situations.\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eSTRADDLES\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eSTRANGLES\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eBULL AND BEAR SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eBUTTERFLY SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eCONDOR SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eRATIO SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eBACKSPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eCALENDAR SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eDIAGONAL SPREADS\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eRounding out this comprehensive guide to option spread trading are some specialized chapters that address the concept of Delta-neutral trading—with an example of how market makers basically use isolating price risk when providing liquidity to the market place—and the issues involved in executing a spread trade.\u003c\/p\u003e \u003cp\u003eDesigned in a modular format with each chapter laid out in a similar fashion, including examples of how each spread would be constructed and key levels to focus on, \u003ci\u003eOption Spread Trading\u003c\/i\u003e is a flexible guide that will help you get the most out of every option you trade.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eOption Spread TRADING\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eThe options industry has experienced incredible growth in recent years. With multiple exchanges now vying for orders from the public, the speed of execution has increased while the cost of trading options has decreased. This has leveled the playing field to the point where individual traders can not only compete in the options arena, but also capture consistent profits. \u003c\/p\u003e\u003cp\u003eNobody understands this better than author Russell Rhoads—an instructor for the Options Institute at the CBOE—who has helped thousands of people successfully incorporate various options strategies into their everyday trading endeavors. \u003c\/p\u003e\u003cp\u003eNow, with \u003ci\u003eOption Spread Trading,\u003c\/i\u003e he shares his extensive experience in this field and reveals what it takes to put the power of option spreads to work for you. Before getting into a detailed discussion of spread trades, this reliable resource opens with a quick overview of essential option knowledge, lays out the mechanics of putting on very basic positions involving two trading instruments, explores different approaches to creating similar payoffs, and covers the \"Greeks.\" \u003c\/p\u003e\u003cp\u003eFrom there, you'll be introduced to a variety of spread strategies, with each chapter focusing on a specific one, and discover how to choose and use the best strategies for certain situations.  \u003c\/p\u003e\u003cul\u003e \u003cli\u003eSTRADDLES\u003c\/li\u003e \u003cli\u003eSTRANGLES\u003c\/li\u003e \u003cli\u003eBULL AND BEAR SPREADS\u003c\/li\u003e \u003cli\u003eBUTTERFLY SPREADS\u003c\/li\u003e \u003cli\u003eCONDOR SPREADS\u003c\/li\u003e \u003cli\u003eRATIO SPREADS\u003c\/li\u003e \u003cli\u003eBACKSPREADS\u003c\/li\u003e \u003cli\u003eCALENDAR SPREADS\u003c\/li\u003e \u003cli\u003eDIAGONAL SPREADS\u003c\/li\u003e \u003c\/ul\u003e  \u003cp\u003eRounding out this comprehensive guide to option spread trading are some specialized chapters that address the concept of Delta-neutral trading—with an example of how market makers basically use isolating price risk when providing liquidity to the market place—and the issues involved in executing a spread trade.  \u003c\/p\u003e\u003cp\u003eDesigned in a modular format with each chapter laid out in a similar fashion, including examples of how each spread would be constructed and key levels to focus on, \u003ci\u003eOption Spread Trading\u003c\/i\u003e is a flexible guide that will help you get the most out of every option you trade.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989723889893,"sku":"NP9780470618981","price":63.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470618981.jpg?v=1761785254","url":"https:\/\/k12savings.com\/es\/products\/option-spread-trading-isbn-9780470618981","provider":"K12savings","version":"1.0","type":"link"}