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The Unlucky Investor's Guide to Options Trading

Julia Spina (Author), Tom Sosnoff (Foreword by)

9781394278060, Wiley

Paperback / softback, published 30 September 2024

224 pages
22.4 x 15 x 2 cm, 0.318 kg

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.

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

Subject Areas: Finance & accounting [KF]

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