The Option Trader’s Workbook: A Problem-Solving Approach


  • Pages: 301
  • Format: PDF
  • Published Date: 2011


The Option Trader’s Workbook introduces powerful new techniques, and reflects the long-term impacts of the 2009 crash. Expert trader Jeff Augen covers every key scenario you’ll encounter in modern options trading, guides you through successful trade executions, and shows how to overcome key pitfalls that trip up most traders.


There are two kinds of successful investors: those who admit to occasionally losing money and those who don’t. Despite claims to the contrary, every investor loses money because risk always scales in proportion to reward. Long-term winners don’t succeed by never losing; they succeed because their trades are well thought out and carefully structured.

That said, very few investors recognize the impact of their own trading mistakes. These mistakes can be subtle. The classic example goes something like this:
1. “I bought calls.”
2. “The stock went up, but I still lost money!”

It’s the thousands of trades, winners and losers both, that separate professionals from amateurs. Option trading is just like playing chess: It requires study and practice. The comparison is more valid than you might think.

Both chess and option trading are governed by a complex set of rules. Risk analysis is at the center of both games; so is positional judgment and the ability to react quickly. Chess players learn to identify patterns; option traders, in their own way, must learn to do the same.

The Option Trader’s Workbook is constructed around these themes. It is designed to let investors explore a vast array of rules and trade structures by solving real-life problems. This approach differs markedly from the catalog of structured trades that seems to have become the contemporary standard for option trading books.


  • Pricing Basics
  • Purchasing Puts and Calls
  • Covered Puts and Calls
  • Complex Trades
  • Advanced Ratio Trades
  • Stock and Option Trades
  • Trading the Weekly Options Expiration