The Unlucky Investor's Guide to Options Trading

An approachable guide to sustainable options trading, minimal luck needed.

Traders who are successful long-term do not rely on luck, but rather their ability to adapt, strategize, and utilize available tools and information. Modern markets are becoming increasingly accessible to the average consumer, and the emergence of retail options trading is opening a world of opportunities for the individual investor. Options are highly versatile and complex financial instruments that were exclusive to industry professionals until recently. So where should beginners start? The Unlucky Investor's Guide to Options Trading breaks down the science of options trading to suit interested traders from any background. Using statistics and historical options data, readers will develop an intuitive understanding of the potential risks and rewards of options contracts. From the basics of options trading to strategy construction and portfolio management, The Unlucky Investor's Guide to Options Trading guides readers through the world of options and teaches the crucial risk management techniques for sustainable investing.

Auteur

JULIA SPINA is a member of the research team and podcast co-host at tastytrade where she works as a financial educator and options strategist. Drawing from her background in physics and experience with signal processing and data analysis, Julia introduces viewers to topics in quantitative finance and their applications in options strategy development. At the University of Illinois, she earned bachelor's degrees in engineering physics (2017) and applied mathematics (2017) and a master's in physics (2018).

TOM SOSNOFF is an online brokerage innovator, financial educator, and the founder and co-CEO of tastytrade. Tom is a serial entrepreneur who cofounded thinkorswim in 1999, tastytrade in 2011, tastyworks in 2017, helped to launch Luckbox magazine in 2019, and in 2020 created the first new futures exchange in 20 years, The Small Exchange. Currently, Tom hosts tastytrade LIVE and continues to drive know-how for the do-it-yourself investor. Tom has been named to Techweek's Tech 100 list, Crain's Chicago Business's Tech 50, and has spoken at more than 500 events across the globe.

Texte du rabat

An approachable guide to sustainable options trading, minimal luck needed. Traders who are successful long-term do not rely on luck, but rather their ability to adapt, strategize, and utilize available tools and information. Modern markets are becoming increasingly accessible to the average consumer, and the emergence of retail options trading is opening a world of opportunities for the individual investor. Options are highly versatile and complex financial instruments that were exclusive to industry professionals until recently. So where should beginners start? The Unlucky Investor's Guide to Options Trading breaks down the science of options trading to suit interested traders from any background. Using statistics and historical options data, readers will develop an intuitive understanding of the potential risks and rewards of options contracts. From the basics of options trading to strategy construction and portfolio management, The Unlucky Investor's Guide to Options Trading guides readers through the world of options and teaches the crucial risk management techniques for sustainable investing.

Contenu

Foreword ix

Preface xiii

Acknowledgments xv

About the Authors xvii

Introduction: Why Trade Options? 1

Chapter 1: Math and Finance Preliminaries 5

Chapter 2: The Nature of Volatility Trading and Implied Volatility 41

Chapter 3: Trading Short Premium 57

Chapter 4: Buying Power Reduction 83

Chapter 5: Constructing a Trade 93

Chapter 6: Managing Trades 117

Chapter 7: Basic Portfolio Management 133

Chapter 8: Advanced Portfolio Management 149

Chapter 9: Binary Events 163

Chapter 10: Conclusion and Key Takeaways 169

Appendix 177

Glossary 187

References 193

Index 195