The Options Trader's Workbook: A Problem Solving Approach

by Jeff Augen

“Unlike most books that oversimplify trading situations, Augen’s approach forces you to learn by solving real-world problems where stock prices spike up and down and volatility changes constantly. Learning by doing is a distinct advantage for both novice and expert.” --Sean Sztern, Alternative Strategies Group, Desjardins Securities “This workbook represents a unique and effective learning tool. It will broaden your understanding of options and raise your trading skills to a higher level.” --Dr. W. Edward Olmstead, Northwestern University, author of Options for the Beginner and Beyond “Serious options trading requires skills that can only be learned through practice. Augen’s progressively more challenging problems definitely provide that real-world practice. There are lessons here for everyone, from beginner to sophisticated professional.” --James Marcus, Partner, CMG Holdings, LLC Most options books offer theory and strategies but don’t give you what you really need: hands-on practice that prepares you for real-world trading, where subtle decisions make the difference between winning and losing. Now, there’s a solution: The Option Trader’s Workbook . Using a question and answer format, this innovative workbook covers key scenarios you’ll encounter as an option trader. Expert trader Jeff Augen explains the challenges they present, reveals the potential pitfalls, and walks you through each example to help you understand how to maximize your success. You’ll master trades designed to profit from rising or falling stock prices, rising or falling volatility, time decay, rapid price spikes, and many other market dynamics. Each section helps you build your skills one trade at a time---whether you’re new to options or you’ve been trading for years.

227 pages, Paperback

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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