Description
Book SynopsisGet a handle on option spreads to hike profit and squash loss The Complete Book of Option Spreads and Combinations is the definitive educational resource and reference guide for using option spreads and other common sense option strategies. This useful guide shows readers how to select the right strategy for their market outlook and risk/reward comfort level by describing the inner workings of each strategy and how they are affected by underlying market movements, implied volatility, and time decay. Even more importantly, readers will understand where each strategy performs well, and the market conditions where each should be avoided. Once the proper strategy is selected, readers will learn how to identify the best options to use based on moneyness and time to expiration. The companion website features tools including an option pricing tool and implied volatility calculator to help all traders implement these concepts effectively.
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Table of Contents
Foreword vii
Preface ix
Chapter 1 Not Just More or Less but Different 1
Chapter 2 Just a Little Math 15
Chapter 3 Vertical Spreads 29
Chapter 4 Covered Calls 55
Chapter 5 Covered Puts 75
Chapter 6 Calendar Spreads 93
Chapter 7 Straddles 109
Chapter 8 Strangles 125
Chapter 9 Collars 139
Chapter 10 Risk Reversal 155
Chapter 11 Butterflies 169
Chapter 12 Condors and Iron Condors 191
Chapter 13 Conversion/Reversal 209
Chapter 14 Ratio Spreads and Back Spreads 217
Chapter 15 Other Spreads and Combinations 235
About the Website 247
About the Author 248
Index 249
