{"product_id":"the-option-trader-handbook-isbn-9780470481615","title":"The Option Trader Handbook","description":"\u003cp\u003eStrategies, tools, and solutions for minimizing risk and volatility in option trading\u003c\/p\u003e \u003cp\u003eAn intermediate level trading book, \u003ci\u003eThe Option Trader Handbook, Second Edition\u003c\/i\u003e provides serious traders with strategies for managing and adjusting their market positions. This \u003ci\u003eSecond Edition\u003c\/i\u003e features new material on implied volatility; Delta and Theta, and how these measures can be used to make better trading decisions. The book presents the art of making trade adjustments in a logical sequence, starting with long and short stock positions; moving on to basic put and call positions; and finally discussing option spreads and combinations.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eCovers different types of underlying positions and discusses all the possible adjustments that can be made to that position\u003c\/li\u003e \u003cli\u003eOffers important insights into more complex option spreads and combinations\u003c\/li\u003e \u003cli\u003eA timely book for today's volatile markets\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIntended for both stock and option traders, this book will help you improve your overall trading skills and performance.\u003c\/p\u003e \u003cp\u003ePreface to the First Edition xiii\u003c\/p\u003e \u003cp\u003ePreface to the Second Edition xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Trade and Risk Management 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eThe Philosophy of Risk 2\u003c\/p\u003e \u003cp\u003eTruth About Reward 5\u003c\/p\u003e \u003cp\u003eRisk Management 6\u003c\/p\u003e \u003cp\u003eRisk 6\u003c\/p\u003e \u003cp\u003eReward 9\u003c\/p\u003e \u003cp\u003eBreakeven Points 11\u003c\/p\u003e \u003cp\u003eTrade Management 11\u003c\/p\u003e \u003cp\u003eTrading Theme 11\u003c\/p\u003e \u003cp\u003eThe Theme of Your Portfolio 14\u003c\/p\u003e \u003cp\u003eDiversification and Flexibility 15\u003c\/p\u003e \u003cp\u003eTrading as a Business 16\u003c\/p\u003e \u003cp\u003eStart-Up Phase 16\u003c\/p\u003e \u003cp\u003eGrowth Phase 19\u003c\/p\u003e \u003cp\u003eMature Phase 20\u003c\/p\u003e \u003cp\u003eJust Business, Nothing Personal 21\u003c\/p\u003e \u003cp\u003eSCORE—The Formula for Trading Success 21\u003c\/p\u003e \u003cp\u003eSelect the Investment 22\u003c\/p\u003e \u003cp\u003eChoose the Best Strategy 23\u003c\/p\u003e \u003cp\u003eOpen the Trade with a Plan 24\u003c\/p\u003e \u003cp\u003eRemember Your Plan and Stick to It 26\u003c\/p\u003e \u003cp\u003eExit Your Trade 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Tools of the Trader 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 29\u003c\/p\u003e \u003cp\u003eOption Value 30\u003c\/p\u003e \u003cp\u003eOption Pricing 31\u003c\/p\u003e \u003cp\u003eStock Price 31\u003c\/p\u003e \u003cp\u003eStrike Price 32\u003c\/p\u003e \u003cp\u003eTime to Expiration 32\u003c\/p\u003e \u003cp\u003eVolatility 33\u003c\/p\u003e \u003cp\u003eDividends 33\u003c\/p\u003e \u003cp\u003eInterest Rates 33\u003c\/p\u003e \u003cp\u003eOption Greeks and Risk Management 34\u003c\/p\u003e \u003cp\u003eTime Decay 34\u003c\/p\u003e \u003cp\u003eTrading Lessons Learned from Time Decay (Theta) 41\u003c\/p\u003e \u003cp\u003eDelta\/Gamma 43\u003c\/p\u003e \u003cp\u003eDeep-in-the-Money Options 46\u003c\/p\u003e \u003cp\u003eImplied Volatility 49\u003c\/p\u003e \u003cp\u003eEarly Assignment 63\u003c\/p\u003e \u003cp\u003eSynthetic Positions 65\u003c\/p\u003e \u003cp\u003eSynthetic Stock 66\u003c\/p\u003e \u003cp\u003eLong Stock 66\u003c\/p\u003e \u003cp\u003eShort Stock 67\u003c\/p\u003e \u003cp\u003eSynthetic Call 68\u003c\/p\u003e \u003cp\u003eSynthetic Put 70\u003c\/p\u003e \u003cp\u003eBasic Strategies 71\u003c\/p\u003e \u003cp\u003eLong Call 71\u003c\/p\u003e \u003cp\u003eShort Call 72\u003c\/p\u003e \u003cp\u003eLong Put 73\u003c\/p\u003e \u003cp\u003eShort Put 74\u003c\/p\u003e \u003cp\u003eBasic Spreads and Combinations 75\u003c\/p\u003e \u003cp\u003eBull Call Spread 75\u003c\/p\u003e \u003cp\u003eBull Put Spread 76\u003c\/p\u003e \u003cp\u003eBear Call Spread 77\u003c\/p\u003e \u003cp\u003eBear Put Spread 78\u003c\/p\u003e \u003cp\u003eLong Straddle 78\u003c\/p\u003e \u003cp\u003eLong Strangle 79\u003c\/p\u003e \u003cp\u003eShort Straddle 80\u003c\/p\u003e \u003cp\u003eShort Strangle 81\u003c\/p\u003e \u003cp\u003eAdvanced Spreads 82\u003c\/p\u003e \u003cp\u003eCall Ratio Spread 82\u003c\/p\u003e \u003cp\u003ePut Ratio Spread 83\u003c\/p\u003e \u003cp\u003eCall Ratio Backspread 84\u003c\/p\u003e \u003cp\u003ePut Ratio Backspread 85\u003c\/p\u003e \u003cp\u003eLong Butterflies 86\u003c\/p\u003e \u003cp\u003eShort Butterflies 87\u003c\/p\u003e \u003cp\u003eLong Calendar Spreads 88\u003c\/p\u003e \u003cp\u003eShort Calendar Spreads 89\u003c\/p\u003e \u003cp\u003eThe Greeks and Spread Trades 90\u003c\/p\u003e \u003cp\u003eDelta\/Gamma 91\u003c\/p\u003e \u003cp\u003eVega 92\u003c\/p\u003e \u003cp\u003eOther Greeks and Spreads 93\u003c\/p\u003e \u003cp\u003eValuable Derivative Traders Program 93\u003c\/p\u003e \u003cp\u003eStep 1: VEGA and Implied Volatility (IV) 94\u003c\/p\u003e \u003cp\u003eStep 2: Delta and Strike Selection 96\u003c\/p\u003e \u003cp\u003eStep 3: Theta and How Much Time to Expiration 97\u003c\/p\u003e \u003cp\u003ePutting the Program to Work 99\u003c\/p\u003e \u003cp\u003eIntroduction to Trade Adjustments 100\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Long Stock 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 105\u003c\/p\u003e \u003cp\u003eProtective Put 106\u003c\/p\u003e \u003cp\u003eStock Moves Higher 109\u003c\/p\u003e \u003cp\u003eStock Moves Lower 111\u003c\/p\u003e \u003cp\u003eBear Put Spread 114\u003c\/p\u003e \u003cp\u003eRolling from a Protective Put into a Bear Put Spread 116\u003c\/p\u003e \u003cp\u003eRolling from a Bear Put Spread into a Protective Put 118\u003c\/p\u003e \u003cp\u003eCall Replacement 120\u003c\/p\u003e \u003cp\u003eStock Moves Higher 121\u003c\/p\u003e \u003cp\u003eStock Moves Lower 122\u003c\/p\u003e \u003cp\u003eCall Replacement versus Protective Put 123\u003c\/p\u003e \u003cp\u003eSell Covered Calls 123\u003c\/p\u003e \u003cp\u003eStock Moves Higher 125\u003c\/p\u003e \u003cp\u003eStrike Selection 127\u003c\/p\u003e \u003cp\u003eIn the Money Calls 128\u003c\/p\u003e \u003cp\u003eTime to Expiration 131\u003c\/p\u003e \u003cp\u003eScaling-Out Strategy 132\u003c\/p\u003e \u003cp\u003eCollars 134\u003c\/p\u003e \u003cp\u003eOpening Position—Regular Collar 134\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Profit Collar 137\u003c\/p\u003e \u003cp\u003eRatio Write 139\u003c\/p\u003e \u003cp\u003eOpening Position 140\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Regular Ratio Write 143\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Variable Strike Ratio Write 149\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Ratio Write\/Variable Strike Ratio Write 153\u003c\/p\u003e \u003cp\u003eShort Straddle\/Short Strangle 156\u003c\/p\u003e \u003cp\u003eOpening Position—Short Straddle 156\u003c\/p\u003e \u003cp\u003eOpening Position—Short Strangle 160\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Short Straddle 163\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Short Strangle 168\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Short Straddle\/Stock Repair 172\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Short Strangle 176\u003c\/p\u003e \u003cp\u003eCall Ratio Spread 179\u003c\/p\u003e \u003cp\u003eOpening Position 182\u003c\/p\u003e \u003cp\u003eStock Moves Higher 186\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Stock Repair Strategy 191\u003c\/p\u003e \u003cp\u003eCall Calendar Spread 193\u003c\/p\u003e \u003cp\u003eOpening Position 195\u003c\/p\u003e \u003cp\u003eStock Moves Higher 196\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Short Stock 201\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 201\u003c\/p\u003e \u003cp\u003eProtective Call—Insurance 203\u003c\/p\u003e \u003cp\u003eOpening Position—Protective Call 203\u003c\/p\u003e \u003cp\u003eOpening Position—Protective Call Spread 208\u003c\/p\u003e \u003cp\u003eShort Stock + Protective Call = Long Put 210\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Protective Call 212\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Protective Call Spread 215\u003c\/p\u003e \u003cp\u003eRolling between Protective Calls and Protective Call Spreads 219\u003c\/p\u003e \u003cp\u003eStock Moves Higher 221\u003c\/p\u003e \u003cp\u003ePut Replacement 223\u003c\/p\u003e \u003cp\u003eStock Moves Lower 224\u003c\/p\u003e \u003cp\u003eStock Moves Higher 226\u003c\/p\u003e \u003cp\u003ePut Replacement versus Protective Call 227\u003c\/p\u003e \u003cp\u003eCovered Puts 228\u003c\/p\u003e \u003cp\u003eStock Moves Lower 229\u003c\/p\u003e \u003cp\u003eShort Collars 234\u003c\/p\u003e \u003cp\u003eOpening Position—Regular Collar 235\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Profit Collar 237\u003c\/p\u003e \u003cp\u003ePut Ratio Write 239\u003c\/p\u003e \u003cp\u003eOpening Position 240\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Regular Ratio Write 243\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Variable Strike Ratio Write 248\u003c\/p\u003e \u003cp\u003ePut Ratio Spread 250\u003c\/p\u003e \u003cp\u003eOpening Position 250\u003c\/p\u003e \u003cp\u003eStock Moves Lower 253\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Short Repair Strategy 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Calls and Puts 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 259\u003c\/p\u003e \u003cp\u003eLong Call 260\u003c\/p\u003e \u003cp\u003eProtective Put—Stock Moves Higher 260\u003c\/p\u003e \u003cp\u003eProtective Put—Stock Moves Lower 262\u003c\/p\u003e \u003cp\u003eCall Replacement 264\u003c\/p\u003e \u003cp\u003eRolling into a Bull Call Spread—Stock Moves Higher 267\u003c\/p\u003e \u003cp\u003eRolling into a Bull Call Spread—Stock Moves Lower\/Call Repair Strategy 269\u003c\/p\u003e \u003cp\u003eRolling into a Bear Call Spread 271\u003c\/p\u003e \u003cp\u003eShort Stock 272\u003c\/p\u003e \u003cp\u003eRolling into a Synthetic Straddle 274\u003c\/p\u003e \u003cp\u003eRolling into a Calendar Spread 276\u003c\/p\u003e \u003cp\u003eRolling into a Ratio Spread 278\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Call Repair Strategy 281\u003c\/p\u003e \u003cp\u003eShort Call 285\u003c\/p\u003e \u003cp\u003eLong Put 288\u003c\/p\u003e \u003cp\u003eProtective Call 288\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Lower 288\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Higher 290\u003c\/p\u003e \u003cp\u003ePut Replacement Therapy 292\u003c\/p\u003e \u003cp\u003eRolling into a Bear Put Spread 294\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Lower 294\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Higher—Put Repair Strategy 295\u003c\/p\u003e \u003cp\u003eRolling into a Bull Put Spread 297\u003c\/p\u003e \u003cp\u003eLong Stock\/Synthetic Straddle 298\u003c\/p\u003e \u003cp\u003ePut Calendar Spread 302\u003c\/p\u003e \u003cp\u003ePut Ratio Spread 305\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Lower 305\u003c\/p\u003e \u003cp\u003eUnderlying Stock Moves Higher—Put Repair Strategy 308\u003c\/p\u003e \u003cp\u003eShort Put 311\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Spreads 317\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 317\u003c\/p\u003e \u003cp\u003eBull Call Spreads\/Bear Put Spreads 317\u003c\/p\u003e \u003cp\u003eProtective Puts\/Protective Calls 318\u003c\/p\u003e \u003cp\u003eBull Call Spread—Protective Put 318\u003c\/p\u003e \u003cp\u003eBull Call Spread—Protective Put Spread 320\u003c\/p\u003e \u003cp\u003eBear Put Spread—Protective Call 321\u003c\/p\u003e \u003cp\u003eBear Put Spread—Protective Call Spread 322\u003c\/p\u003e \u003cp\u003eConvert to Ratio Spreads 323\u003c\/p\u003e \u003cp\u003eBull Call Spread—Stock Moves Higher 323\u003c\/p\u003e \u003cp\u003eBull Call Spread—Stock Moves Lower\/Repair Strategy 326\u003c\/p\u003e \u003cp\u003eBear Put Spread—Stock Moves Lower 330\u003c\/p\u003e \u003cp\u003eBear Put Spread—Stock Moves Higher\/Repair Strategy 332\u003c\/p\u003e \u003cp\u003eConvert to Butterflies 336\u003c\/p\u003e \u003cp\u003eBull Call Spread 337\u003c\/p\u003e \u003cp\u003eBear Put Spread 338\u003c\/p\u003e \u003cp\u003eBear Call Spreads\/Bull Put Spreads 340\u003c\/p\u003e \u003cp\u003eCalendar Spreads 340\u003c\/p\u003e \u003cp\u003eCall Calendar Spread 341\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Rolling into a Bull Call Spread 341\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Rolling into a Diagonal Ratio Spread 342\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Rolling into a Lower Strike Bull Call Spread 343\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Convert to a Calendar Strangle 344\u003c\/p\u003e \u003cp\u003ePut Calendar Spread 345\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Rolling into a Bear Put Spread 345\u003c\/p\u003e \u003cp\u003eStock Moves Lower—Rolling into a Diagonal Ratio Spread 345\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Rolling into a Higher Strike Bear Put Spread 347\u003c\/p\u003e \u003cp\u003eStock Moves Higher—Rolling into a Calendar Strangle 348\u003c\/p\u003e \u003cp\u003eButterfly Spreads 348\u003c\/p\u003e \u003cp\u003eLong Butterfly to Long Condor 348\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Combinations 353\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 353\u003c\/p\u003e \u003cp\u003eLong Straddle 353\u003c\/p\u003e \u003cp\u003eStraps\/Strips 354\u003c\/p\u003e \u003cp\u003eModified Straps\/Strips 357\u003c\/p\u003e \u003cp\u003eCalendar Straddle 359\u003c\/p\u003e \u003cp\u003eRolling a Long Straddle into an Iron Butterfly 361\u003c\/p\u003e \u003cp\u003eDiagonal Iron Butterfly 363\u003c\/p\u003e \u003cp\u003ePartial Iron Butterfly 363\u003c\/p\u003e \u003cp\u003eLong Call\/Long Put Adjustments 365\u003c\/p\u003e \u003cp\u003eLong Strangle 365\u003c\/p\u003e \u003cp\u003eDiagonal Iron Butterfly 365\u003c\/p\u003e \u003cp\u003eCalendar Strangle 367\u003c\/p\u003e \u003cp\u003eLong Call\/Long Put Adjustments 367\u003c\/p\u003e \u003cp\u003eShort Straddle\/Short Strangle 368\u003c\/p\u003e \u003cp\u003eShort Straddle 368\u003c\/p\u003e \u003cp\u003eRolling Short Straddle into Iron Butterfly 371\u003c\/p\u003e \u003cp\u003eShort Strangle 373\u003c\/p\u003e \u003cp\u003eIndex 375\u003c\/p\u003e    \u003cp\u003e\u003cb\u003eGEORGE M. JABBOUR, P\u003csmall\u003eH\u003c\/small\u003eD,\u003c\/b\u003e is the Director of the Master of Science in Finance program at The George Washington University, as well as a professor of derivatives, financial engineering, and investments. Dr. Jabbour has published various articles in professional financial journals and regularly speaks at conferences in the United States and abroad regarding option pricing models, financial management, and risk management. He is also a managing director of Global Asset Investments, LLC, an asset management and derivatives consulting firm, and CEO of Global Finance Associates Inc., a financial training, consulting, and research company. Dr. Jabbour regularly conducts seminars in option trading and valuation, and is a very active equities and derivatives trader. \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePHILIP H. BUDWICK,\u003c\/b\u003e \u003cb\u003eM\u003csmall\u003eS\u003c\/small\u003eF,\u003c\/b\u003e is the Director of the Capital Markets Trading Room at The George Washington University School of Business and frequently writes articles on option trading strategies and investments. Mr. Budwick is a Managing Director of Global Asset Investments, LLC, an asset management and derivatives consulting firm, and is an active option and stock trader. He has a law degree and a master of science in finance and teaches classes in portfolio management.     \u003c\/p\u003e\u003cp\u003e\u003cb\u003eTHE OPTION TRADER HANDBOOK\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eIf you want to be a successful trader, you need to consistently improve your skills and never assume you know everything about the markets. That's why authors George Jabbour and Philip Budwick have returned with the second edition of \u003ci\u003eThe Option Trader Handbook.\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003eFollowing the same structure of the first edition, this updated guide delves deeper into the mechanics of option pricing and trade adjustments to provide you with a new perspective on the art and science of option trading. Designed for both intermediate and advanced traders, this book skillfully highlights numerous strategies for minimizing risk and volatility; discusses stock and option positions; and details the various types of trade adjustments that can be made, what situations are appropriate for each adjustment, and the best time to make those adjustments. \u003c\/p\u003e\u003cp\u003eAn unparalleled resource for today's volatile investment climate, this \u003ci\u003eSecond Edition\u003c\/i\u003e features fresh material that will help you hedge or even boost profits, limit losses, and create risk-free trades. Page by page, it offers in-depth insights and expanded coverage on: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eThe nature of Implied Volatility (IV) and how it can change with respect to the market as a whole and to individual stocks\u003c\/li\u003e \u003cli\u003eThe \"Greeks\" and how they can be used to make better trading decisions and reduce risk\u003c\/li\u003e \u003cli\u003eImplementing more sophisticated option spreads and combinations\u003c\/li\u003e \u003cli\u003eNumerous charts and graphs that clearly demonstrate how each trade adjustment is done\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWith even more tools and tips to improve your understanding of how options work and how to make better trading decisions, \u003ci\u003eThe Option Trader Handbook, Second Edition\u003c\/i\u003e will become one of the most valuable assets in any trader's portfolio.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990305063141,"sku":"NP9780470481615","price":89.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470481615.jpg?v=1761787281","url":"https:\/\/k12savings.com\/products\/the-option-trader-handbook-isbn-9780470481615","provider":"K12savings","version":"1.0","type":"link"}