The Little Book of Trading Options Like the Pros

Auteur

David Berns is a pioneer in the use of options and derivatives for both retail and institutional portfolio management. David is currently the Chief Investment Officer of Simplify, an asset manager bringing institutional-grade alternative strategies to ETFs. Michael Green has been a student of markets and market structure for nearly 30 years and has a storied track record as a hedge fund manager at Canyon Capital Advisors, Ice Farm Capital, Logica, and Thiel Macro.

Texte du rabat

In The Little Book of Trading Options Like the Pros, a team of veteran options and derivatives traders delivers an expert account of mastering the zero-sum game of options trading. Rather than gambling in the market like most retail investors tend to do, you'll learn how to trade like an "option market maker," gaining an advantage over option buyers, and making a small amount of money, on average, on each trade, much like the house in Las Vegas or an insurance company selling insurance policies.

A one-stop resource for everyone looking to become a pro-level trader, including engaging anecdotes and powerful institutional knowledge, The Little Book of Trading Options Like the Pros clarifies a singular pro trade to make in the options market, laying out the basic trade and why it works, and providing a wealth of guidance on option selection, portfolio construction, and risk management.

Containing insightful tips for the next generation of options traders, without the expensive finance degrees or hard-to-obtain experience, The Little Book of Trading Options Like the Pros is a must-read resource for investors looking to succeed in the options market by harnessing the same strategies used by professional options traders.

Contenu

Preface xi

Acknowledgments xvi

Chapter One Trading Options: Allure vs. Reality 1

The Retail Option Explosion 2

The Natural Biases of New Traders 7

The Amateur Trap 10

An Intuitive Conclusion 12

Chapter Two The Barebones Option Primer 15

Option Basics 17

Options in Time 20

Breaking Down the Option Premium 23

Combining Options 31

Real- World Examples 35

Chapter Three Become the House 39

The Broader Option Ecosystem 40

Our Core Trade 45

Strike Selection 47

Expiry Selection 51

Equity ETF Puts for the Win 55

Chapter Four Risk Management 57

Moving Beyond "Sell and Hold" 59

Stop Losses 60

Profit Taking 64

Rolling Positions 67

Chapter Five Building a Portfolio 73

Motivation 75

Expanding Our Universe 77

A "Commonsense" Portfolio 84

Optimized Portfolios 89

Setting Risk Exposures 96

Chapter Six From Theory to Practice 101

Option Screener 103

Trading 108

The First Six Months 119

Beware Assignment 122

Behavioral Biases of Sellers 123

Parting Words 125

Bibliography 127