An approachable guide to sustainable options trading, minimal luck needed.
Traders who are successful long-term do not rely on luck, but rather their ability to adapt, strategize, and utilize available tools and information. Modern markets are becoming increasingly accessible to the average consumer, and the emergence of retail options trading is opening a world of opportunities for the individual investor. Options are highly versatile and complex financial instruments that were exclusive to industry professionals until recently. So where should beginners start? The Unlucky Investor's Guide to Options Trading breaks down the science of options trading to suit interested traders from any background. Using statistics and historical options data, readers will develop an intuitive understanding of the potential risks and rewards of options contracts. From the basics of options trading to strategy construction and portfolio management, The Unlucky Investor's Guide to Options Trading guides readers through the world of options and teaches the crucial risk management techniques for sustainable investing.
Table of Contents
Foreword ix
Preface xiii
Acknowledgments xv
About the Authors xvii
Introduction: Why Trade Options? 1
Chapter 1: Math and Finance Preliminaries 5
Chapter 2: The Nature of Volatility Trading and Implied Volatility 41
Chapter 3: Trading Short Premium 57
Chapter 4: Buying Power Reduction 83
Chapter 5: Constructing a Trade 93
Chapter 6: Managing Trades 117
Chapter 7: Basic Portfolio Management 133
Chapter 8: Advanced Portfolio Management 149
Chapter 9: Binary Events 163
Chapter 10: Conclusion and Key Takeaways 169
Appendix 177
Glossary 187
References 193
Index 195
