The Option Trader Handbook: Strategies and Trade Adjustments

Product Description

Given the recent volatility in the markets over the past few years,there is a growing need for traders to learn how options can be used for better risk management.Using the right strategies and trade adjustments,creative investors can hedge or even boost their profits,limit their losses,and create risk-free trades.Although many investors understand how to trade stocks or options,very few know how to use options as a dynamic risk reduction and portfolio enhancement tool.Implementing these strategies requires more than just an understanding of the mechanics of trading,it requires ingenuity and imagination —as well as a comprehensive trading reference tool. Designed as a resource for intermediate to advanced traders,The Option Trader Handbook teaches both the science and the art of trade man- agement,and offers numerous strategies and tech- niques for minimizing risk and volatility.The authors, both recognized experts in the field,discuss stock and option positions and detail the various types of trade adjustments that can be made,what situa- tions are appropriate for each adjustment,and the best time to make those adjustments.

With this book as your guide,you will find sensible answers to questions such as:

• What happens if my stock or option position does not move exactly as planned?
• Is there a way for me to lock in unrealized prof-- its or provide a hedge against further losses?
• How can I create risk--free trade?

In a logical,sequential order,the authors cover the principles of risk and trade management, as well as the tools required to put them into practice, bringing them all together with a proven formula for successful trading and portfolio management.

An unparalleled resource for today ’s volatile invest- ment climate,The Option Trader Handbook offers:

• A detailed guide for better trade and portfolio management
• Numerous trade adjustments for long and short stock positions,calls and puts,spreads and com- binations
• Specific trading examples with detailed charts and graphs to clearly demonstrate how each trade adjustment is done.
Product Details

* Amazon Sales Rank: #193454 in Books
* Published on: 2004-06-02
* Original language: English
* Number of items: 1
* Binding: Hardcover
* 352 pages

Editorial Reviews

From the Inside Flap
Given the recent volatility in the markets over the past few years, there is a growing need for traders to learn how options can be used for better risk management. Using the right strategies and trade adjustments, creative investors can hedge or even boost their profits, limit their losses, and create risk-free trades. Although many investors understand how to trade stocks or options, very few know how to use options as a dynamic risk reduction and profile enhancement tool. Implementing these strategies requires more than just an understanding of the mechanics of trading, it requires ingenuity and imagination--as well as a comprehensive trading reference tool.

Designed as a resource for intermediate to advanced traders, The Option Trader Handbook teaches both the science and the art of trade management, and offers numerous strategies and techniques for minimizing risk and volatility. The authors, both recognized experts in the field, discuss stock and option positions and detail the various types of trade adjustments that can be made, what situations are appropriate for each adjustment, and the best time to make those adjustments.

With this book as your guide, you will find sensible answers to questions such as:

* What happens if my stock or option position does not move exactly as planned?
* Is there a way for me to lock in unrealized profits or provide a hedge against further losses?
* How can I create risk-free trades?

In a logical, sequential order, the authors cover the principles of risk and trade management as well as the tools required to put them into practice, weaving them all together with a proven formula for successful trading and portfolio management.

An unparalleled resource for today’s volatile investment climate, The Option Trader Handbook offers:

* A detailed guide for better trade and portfolio management
* Numerous trade adjustments for long and short stock positions, calls and puts, spreads and combinations
* Specific trading examples with numerous charts and graphs to clearly demonstrate how each trade adjustment is done

By demonstrating how options can be used to hedge risks and boost overall returns, The Option Trader Handbook will become one of the most valuable assets in any trader’s portfolio.

From the Back Cover
Praise for The Option Trader Handbook

"Jabbour and Budwick’s unique approach to strategies and trading moves options analysis out of the laboratory and onto the painter’s canvas. Understanding this refreshingly new viewpoint is essential for any options trader looking to expand both his horizons and his wallet."
--William E. Seale, PhD
Principal and Chief Investment Officer, ProFund Advisors LLC

"The Option Trader Handbook is the best text available for those who desire detailed advice about how to manage positions with standard and advanced options strategies. The book is well worth reading due to its step-by-step focus on practical strategies and trade adjustments. Given the breadth and depth of the options positions covered, it will certainly serve as an important reference text in any trader’s library."
--Stephen D. Young
Vice President, Wachovia Capital Markets, LLC

About the Author
GEORGE JABBOUR is the Director of the Master of Science in Finance (MSF) program at the George Washington University, as well as a professor of derivatives, financial engineering, and investments. Dr. Jabbour has published various articles in professional financial journals and regularly speaks at conferences in the United States and abroad regarding option pricing models, financial management, and risk management. He is also a managing director of Global Asset Investments, LLC, an asset management and derivative consulting firm, and CEO of Global Finance Associates, Inc., a financial training, consulting, and research company. Dr. Jabbour regularly conducts seminars in option trading and valuation, and is a very active equity and derivative trader.
PHILIP BUDWICK has a law degree and a master of science in finance, and frequently writes articles on option trading strategies and investments. Mr. Budwick is a managing director of Global Asset Investments, LLC, and a managing member of Budwick Investment Group, LLC, an option trading and investment software firm. He also conducts discussion groups and offers option investment training through Option Trading Coach, LLC, and is an active option and stock trader.
Customer Reviews

Good-to-Great Option trading book 5
Bottom line: If you want to trade options, or are already trading options and you are not an expert, buy this book, and read it carefully.

I have looked at lots of option trading books, and bough and read a few, not to mention looking at MANY websites and even taking a personalized Option trading course.

This is, beyond doubt, one of the best and most useful I've seen.

Aside from the usual basic information which is a must-have in a book aimed at non-experts, which is done an a good, efficient manner, this book really shines in covering positions adjustments and discussing their plus and minus implications. Where "adjustments" are follow-on-trades to be done after you open a position, and then the stock behaves as expected, or behaves opposite to as expected.

In this respect, this book is almost alone in explaining what to do, and the implications of the action.

My one quibble is that a lot of the worked-examples are done in text, mostly, where a table-form or flow-chart presentation would be better, I think.

That said, I HIGHLY recommend this book

Review of purchasing book "Option Trader Handbook"5
It was a great book to learn option trading. I higly recommend this book to someone who wants to know option trading.

Very disappointing1
I found this book lacked substance and will quickly fade into the dusty shelves of bookstores.