The Option Trader's Workbook: A Problem-Solving Approach

by Jeff Augen

This is the eBook of the printed book and may not include any media, website access codes, or print supplements that may come packaged with the bound book. Successful options trading requires extensive practice. Most options books offer theory and strategies, but don't offer the practice needed to prepare for real-world trades, where the wrong split-second decisions can cost you dearly. Expert trader Jeff Augen covers every key scenario you'll encounter in modern options trading, guides you through successful trade executions, and shows how to overcome key pitfalls that trip up most traders. You'll walk through trades designed to profit from changing prices and volatility, time decay, rapid price spikes, and many other factors. This second edition introduces powerful new techniques, and reflects the long-term impacts of the 2009 crash. New problems CBOE Weekly Options Expiration options, and their unique pricing dynamics.Using collars, covered calls, and covered puts to structure income-generating trades with well-defined risk profiles.Using ratio trading, VIX options, volatility ETFs, and variance trading to generate profits from shifts in volatility. Each section contains beginner, intermediate, and advanced sections, helping you build your skills one trade at a time, no matter how much experience you have--or how little. You'll find several hundred questions, all designed to mirror real life, and supported with clearly explained solutions.

303 pages, Kindle Edition

First published January 1, 2008

Reviews

[Andrew Mueller · Rating 4 out of 5]

This book is indeed literally a workbook of practice problems that cover real trading situations. He focuses on a particular trade or situation for several problems in a row. This is an excellent reference for several different options trading strategies as well as thinking about volatility.

Like many options books, he does cover a lot of basic information and then goes into basic covered strategies. The mainstay of the book for me were chapters 4 & 5 on complex trades. He covers the following here: Vertical Spreads, Calendar Spreads, Diagonal & Calendar Spreads, Ratio trades, Butterfly spreads and more.

He also focuses a lot of volatility and how volatility impacts pricing, etc.

[Glenn Liguori]

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