The Art of Options Trading in Australia

The exchange-traded options market is one of the most dynamic and innovative markets in Australia, and options themselves are among the most profitable tools available to traders. While traditional investors can only make a profit when the market is rising, traders in options can make money whether the market is moving up or down. The leverage they provide also allows traders to control a large amount of stock with a comparatively small amount of money.

In The Art of Options Trading in Australia, experienced and highly successful options trader Christopher Tate shows you how to make the most of these valuable tools. Starting with the basics of defining options, Chris goes on to look at:

• How options are priced, and what factors influence this
• Reading option quotes and payoff diagrams
• How the passing of time and changes in volatility affect options
• The 'Greeks' and how to use them
• Using the internet to assist your options trading
• Spreads, straddles and strangles
• Warrants, and the different types available.

1. Option Market Basics 1

2. Option Pricing 17

3. Option Sensitivities 45

4. Call Buying 65

5. Call Writing 75

6. Put Buying 89

7. Put Writing 95

8. Spreads, Straddles and Strangles 101

9. Warrants 115

Appendix 125

Glossary: Option Expiry 127

Index 139

Christopher Tate is the author of The Art of Options Trading in Australia, published by Wiley.