Options theory and trading : a step-by-step guide to control risk and generate profits /: a step-by-step guide to control risk and generate profits. (2009)
- Record Type:
- Book
- Title:
- Options theory and trading : a step-by-step guide to control risk and generate profits /: a step-by-step guide to control risk and generate profits. (2009)
- Main Title:
- Options theory and trading : a step-by-step guide to control risk and generate profits
- Further Information:
- Note: Ron Ianieri.
- Other Names:
- Ianieri, Ron, 1964-
- Contents:
- Preface xi Acknowledgments xv Part I Understanding Terms and Theory 1 Chapter 1 Options Basics and Terms 3 Calls and Puts 4 Classes and Series 5 In the Money, Out of the Money, and At the Money 7 Premium and Time Decay 9 Intrinsic versus Extrinsic Value 9 Volatility 12 Chapter 2 Calls and Puts 15 Call Options 15 Put Options 16 Chapter 3 Option Theory 19 Option Pricing Models 20 Fundamentals of Pricing Models 21 Types of Pricing Models 25 Inputs of the Options Pricing Model 32 Outputs of the Pricing Model 39 Chapter 4 Option Theory and the Greeks 41 Delta 42 Gamma 52 Vega 57 Theta 68 Second-Tier Greeks 80 Chapter 5 Synthetic Positions 85 Defining Synthetics 86 Synthetic Stock 88 Synthetic Call 96 Synthetic Put 106 Part II Basic Strategies 117 Chapter 6 Introduction to Trading Strategies 119 Directional Trading Strategies 119 In-the-Money, Out-of-the-Money, and At-the-Money Options 123 Leverage and Risk 128 Chapter 7 Covered Call/Buy-Write Strategy 131 Foundations of the Strategy 131 Performance in Different Scenarios 135 Lean 138 Rolling the Position 139 Examples 141 Covered Call/Buy-Write Synopsis 146 Chapter 8 The Covered Put/Sell-Write Strategy 147 Reviewing Selling Short 147 Foundations of the Strategy 148 Performance in Different Scenarios 151 Lean 154 Rolling the Position 157 Examples 157 Covered Put/Sell-Write Synopsis 163 Chapter 9 The Protective Put Strategy 165 Foundations of the Strategy 165 Performance in Different Scenarios 166 Lean 168 When to Use the ProtectivePreface xi Acknowledgments xv Part I Understanding Terms and Theory 1 Chapter 1 Options Basics and Terms 3 Calls and Puts 4 Classes and Series 5 In the Money, Out of the Money, and At the Money 7 Premium and Time Decay 9 Intrinsic versus Extrinsic Value 9 Volatility 12 Chapter 2 Calls and Puts 15 Call Options 15 Put Options 16 Chapter 3 Option Theory 19 Option Pricing Models 20 Fundamentals of Pricing Models 21 Types of Pricing Models 25 Inputs of the Options Pricing Model 32 Outputs of the Pricing Model 39 Chapter 4 Option Theory and the Greeks 41 Delta 42 Gamma 52 Vega 57 Theta 68 Second-Tier Greeks 80 Chapter 5 Synthetic Positions 85 Defining Synthetics 86 Synthetic Stock 88 Synthetic Call 96 Synthetic Put 106 Part II Basic Strategies 117 Chapter 6 Introduction to Trading Strategies 119 Directional Trading Strategies 119 In-the-Money, Out-of-the-Money, and At-the-Money Options 123 Leverage and Risk 128 Chapter 7 Covered Call/Buy-Write Strategy 131 Foundations of the Strategy 131 Performance in Different Scenarios 135 Lean 138 Rolling the Position 139 Examples 141 Covered Call/Buy-Write Synopsis 146 Chapter 8 The Covered Put/Sell-Write Strategy 147 Reviewing Selling Short 147 Foundations of the Strategy 148 Performance in Different Scenarios 151 Lean 154 Rolling the Position 157 Examples 157 Covered Put/Sell-Write Synopsis 163 Chapter 9 The Protective Put Strategy 165 Foundations of the Strategy 165 Performance in Different Scenarios 166 Lean 168 When to Use the Protective Put Strategy 170 Examples 172 Protective Put Synopsis 177 Chapter 10 The Synthetic Put/Protective Call Strategy 179 Foundations of the Strategy 179 Performance in Different Scenarios 181 Lean 183 When to Use the Protective Call Strategy 184 Examples 187 Synthetic Put Synopsis 191 Chapter 11 The Collar Strategy 193 Foundations of the Strategy 193 Performance in Different Scenarios 194 Lean 197 Examples 199 Collar Synopsis 204 Part III Advanced Strategies: Spread Trading, Straddles, and Strangles 207 Chapter 12 Vertical Spreads 209 Construction of a Vertical Spread 210 Value and the Vertical Spread 211 Spread Prices Fluctuate 217 Factors that Affect Spread Pricing 218 Rolling the Position 218 Time Decay and Volatility Trading Opportunities 220 An Imaginary Spread Scenario 222 Recap with Special Insights 224 Examples 225 Bull Spread Synopsis 230 Bear Spread Synopsis 231 Chapter 13 Time Spreads 233 Construction of the Time Spread 233 Behavior of the Spread 234 Effects of Stock Price on the Time Spread 236 Effects of Volatility on the Time Spread 237 Buyer Risk and Reward 244 Seller Risk and Reward 245 Rolling the Position 246 Concluding Thoughts 249 Examples 249 Time Spread Synopsis 253 Chapter 14 The Stock Replacement/Covered Call Strategy (Diagonal Spread) 255 When to Use the Diagonal Spread 257 Rolling the Position 259 Conclusion 259 Chapter 15 Straddles 261 What Is a Straddle? 261 Straddle Scenarios 262 How It Works 262 Factors that Affect Straddle Prices 263 Risks and Rewards 266 Break-Even, Maximum Reward, and Maximum Risk 267 Conclusion 271 Examples 271 Long Straddle Synopsis 276 Short Straddle Synopsis 277 Chapter 16 Strangles 279 What Is a Strangle? 280 Strangle Scenarios 281 How It Works 281 Factors that Affect Strangle Prices 282 Risks and Rewards 285 Break-Even, Maximum Reward, and Maximum Risk 285 Conclusion 289 Examples 289 Long Strangle Synopsis 294 Short Strangle Synopsis 294 Part IV Combination Strategies 297 Chapter 17 The Butterfly 299 Constructing the Butterfly 299 Why Use Butterflies? 301 Butterfly and Synthetic Positions 303 What Will a Butterfly Cost? 305 Butterfly and the Greeks 307 Iron Butterfly 309 Long Iron Butterfly 312 Using the Butterfly 312 Long Butterfly Synopsis 313 Short Butterfly Synopsis 314 Chapter 18 The Condor 315 Long Condor 315 Short Condor 316 Why Use Condors? 317 How It Works 320 Condors versus Butterflies 321 Condors and the Greeks 323 Iron Condors 326 How Do We Use Condors? 330 Long Condor Synopsis 331 Short Condor Synopsis 332 Conclusion 335 Appendix: Five Trading Sheets 337 About the Author 343 Index 345 … (more)
- Publisher Details:
- Place of publication not identified : Wiley
- Publication Date:
- 2009
- Extent:
- 1 online resource (368 pages)
- Subjects:
- 332.632283
Stock options
Portfolio management
Risk management
Options (Finance) - Languages:
- English
- ISBNs:
- 9780470502891
- Access Rights:
- Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
- Access Usage:
- Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library HMNTS - ELD.DS.507933
- Ingest File:
- 03_085.xml