Options and Options Trading breaks the code that envelops the often-foreign language of options, providing an accessible introduction into how the options market works as it explains the rules that traders must understand if they hope to take part in this high-leverage, high-profit game. Author Robert Ward’s goal is simple–to demystify the tangled world of options trading without leaving readers too confused and frustrated to continue. The book to read before continuing on to the more detailed, and much higher-level, existing library of options trading guides, Options and Options Trading features:
- End-of-chapter material including “Things to Think About” and “Key Concepts”
- Simplified explanations of complex mathematical equations
- Step-by-step rationales to help readers move from basic to complex
In the options market, it always comes down to you versus them. Thing is, they’ve been at it a lot longer than you, and have years of hands-on experience navigating the tricks and traps of profitable options trading. Before you take your place at the table, it’s in your best interest to discover how options really work, and how they can work for you. Options & Options Trading translates the foreign language of options into plain English. Based on Robert Ward’s experience as a Merrill Lynch head trader as well as his popular New York University trading and options course, this step-by-step primer explains what options are, introduces basic valuation and trading concepts, and demystifies this versatile trading vehicle.
Contents:
- What a Derivative Is and What It Isn’t
- Binomials and Coin Tosses
- Pascal’s Triangle and the Binomial Theorem
- Distributions Are the Key—What Are Distributions?
- Probabilities, Odds, and Payoffs
- Writing Our First Option
- Sectors, Strike Prices, and Summation Signs
- The Fair Price of an Option
- Our First Stock Option: IBM
- Statistics: The 15-Minute Cram Course
- Dow Jones versus Coin Tosses
- Turning Spot Prices into Forward Prices: S*e^RT
- Skeleton for an Option Formula
- Getting Comfortable with the Black-Scholes Formula
- Introducing Volatility and SKIT-V
- Pros and Cons of the Black-Scholes Formula
- A Primer on Risk and Hedging
- Option Risk: Finding It and Hedging It
- How Traders Make Money (Customers)
- How to Convert Puts and Calls: CPL.PCS
- The Best Option Strategie
- Market Insights and Edges
Options and Options Trading: A Simplified Course That Takes You from Coin Tosses to Black-Scholes By Robert Ward pdf
