If you have experience in option trading, or a strong understanding of the options markets, but want to better understand how to trade given certain market conditions, this is the book for you. Mark Sebastian's new edition will teach trade evaluation, using Greeks, trading various spreads under different market conditions, portfolio-building, and risk management. Sebastian's approach will help traders understand how to find edge, what kind of trade under what conditions will capture edge, and how to create and successfully hedge. The book demonstrates how to structure a portfolio of trades that makes more money with less risk.
Table of Contents:
Foreword by Bill Luby
Part I: Professional Lessons Every Trader Needs to Know
Chapter 1: Trading in Options
Chapter 2: Risk Management
Chapter 3: Market Makers, Risk, and the Individual Trader
Chapter 4: Volatility
Chapter 5: What Is Edge?
Chapter 6: Locking in Edge
Part II: Using Spreads
Chapter 7: A Quick Review of Spreads
Chapter 8: Adding Edge to Spreads
Chapter 9: Butterflies and Condors
Chapter 10: The Front Spread
Chapter 11: Calendar Spreads
Chapter 12: Trading VIX
Chapter 13: Trading VIX ETP's and ETF's
Part III: Global Risk
Chapter 14: How a Market Maker Trades
Chapter 15: Portfolio Greeks
Chapter 16: Investing with Options/Stock Replacement
Chapter 17: Hedging and Crisis Alpha with Options
Part IV: Appendices
About the Author: Mark Sebastian is a former member of both the Chicago Board Options Exchange and the American Stock Exchange. CIO of Karman Line Capital and the founder of Option Pit Mentoring and Consulting, a Chicago based option education firm, Sebastian has been published nationally on Yahoo Finance, quoted in the Wall Street Journal, Reuters, and Bloomberg and is a writer for Real Money on TheStreet.com. Mark is also the managing editor for Expiring Monthly: The Option Traders Journal an all digital, all options magazine. Mark has spoken for the CBOE, the ISE, CME, VOLX and is a co-host on the popular Option Block Podcast and is the Volatility Reporter for the Volatility Views podcast. Mark has a Bachelor's in Science from Villanova University.