Description
Book SynopsisA real-world guide to trading equity options this book explains the basic fundamentals of equity options for readers without a specific or deep knowledge of the topic. It shows traders new to equity options how to enhance their equity portfolio with a full range of investment opportunities and tools.
Table of ContentsForeword vii
Preface: Trading Language and Products ix
1 Option Basics 1
2 Option Specifications 9
3 Exercise and Assignment 13
4 Option Uses 19
5 Option Price and Value 31
6 “Moneyness” 39
7 Pricing Options 43
8 Skew 61
9 Option Pricing Revisited: the “Greeks” 71
10 Basic Option Strategy 95
11 Option Spreads 105
12 The Collar (Fence) 107
13 Long Call Spreads (Bull Call Spreads) 119
14 Long Put Spreads (Bear Put Spreads) 127
15 Short Call Spreads (Bear Call Spreads) 139
16 Short Put Spreads (Bull Put Spreads) 147
17 Selling Naked Puts versus Selling Put Spreads 151
18 Long Verticals versus Short Verticals 157
19 Long Straddles 161
20 Long Strangles 167
21 Short Straddles 173
22 The Iron Butterfly 179
23 Short Strangles 185
24 The Iron Condor 187
25 Calendar Spreads 193
26 Long Call Calendars 195
27 Short Call Calendar Spreads 201
28 Long Put Calendar Spreads 205
29 Short Put Calendar Spreads 209
30 Diagonal Spreads 213
31 Yield Enhancement 219
32 Gamma Trading 223
33 Resources 233
34 Summary 235
Glossary 237
Index 247
