Option Trading Books
Options Trading Strategies – Why Are They So Important?
You may have heard the expression “do one thing, do it well”. This was never so true as it is when it comes to the matter of trading the markets. There are many option trading systems out there and the developers of these systems will always tell you that theirs is the one that will solve your financial problems and give you the freedom you’ve dreamed about.
And some of them may be right.
Some systems will tell you that all you need is the RSI and volume indicators only, together with a few moving averages and bollinger bands. Others will focus on the ADX or the CCH indicators and their systems will focus around that.
Other option trading systems will be simple and involve only going long, or ‘buying to open’ with the objective of selling to close at a profit within a very short timeframe. They will give you all the indicators and chart setups to accomplish this. Others will emphasise longer term strategies that rely on option time decay. Some systems will involve directional trading, that is, predicting future market direction in the short term, while others will teach you about ‘delta neutral trading’ and preach strategies such as straddles and strangles which can make you a good profit as long as the market makes a significant move one way or the other.
All the above option trading systems may be great in themselves, but here’s the best tip you’ll ever get from someone who’s done it all. The most important thing is, find one or more strategies that you understand well and that you’ve had regular success with and just keep doing it. Don’t allow yourself to get distracted by trying new strategies using real money, because you’ve seen the latest DVD or read some book that tells you how someone made a million with it.
It’s really as simple as that.
I remember a time in my Trading Life when I was using an option trading system that really worked for me. I started with about $5,000 and within a short time, transformed it into a bank account of over $20,000. I did this using a simple ‘buy to open’ and ‘sell to close’ strategy that I had learned from a guy named Nik Halik, combined with a few straddle trades. I was doing really well.
But then I became impatient. The market I was trading in didn’t have the kind of liquidity that allowed me to always take a trade when I saw an opportunity. So I decided to switch from trading options to doing CFDs. At the same time, I was learning about ‘ABC swing trading’ according to W.D. Gann and changed the way I analyzed chart patterns and identified opportunities without fully understanding the context in which this system works. Now whilst CFDs are far more liquid than options, they also involve much greater risk due to the amount of leverage involved. Unlike option trading, you can lose more than your investment, so the psychology wasn’t good for me either. So many times, I found myself stopped out, only to have the stock take off in the direction I had anticipated in the first place. I lost most of the money I had made from my previously successful option trading system.
The point is, you need to stay focussed on a system that you feel confident with and that has proven itself to work for you. Don’t allow yourself to be distracted by other systems that look great on the surface, but may not be compatible with your trading style or available concentration time – or that you simply may not yet understand well enough to implement effectively.
Over 90 percent of trading success is about your own psychology. It’s the critical thing that causes you to make all your trading decisions. This is why you must enter the market with confidence, knowing that whatever trading system you have adopted, you understand it well, have proven to yourself that it works, know the risks and believe that with patience and discipline, it will make you a consistent income for the rest of your life.
If you don’t have all this, there are three little words I have for you, right here, right now. DON’T DO IT!
About the Author
Visit Owen’s popular blog to understand the advantages of Option Trading and how good option trading systems can work for you.
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Audio CD from seminar The Predictive Power of Options 2 disc series with Larry McMillan $18.65 This 2 disc audio CD was recorded at the International Online Trading Expo 4A. One of the country’s top experts in options trading offers the very latest strategies in option trading techniques, covering hedging, volatility, and pricing concepts, plus his own options philosophy. You will learn how to incorporate the predictive power of options in your daily trading…. |
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Zero To Zillions (VHS/Audio Tape/Book) $149.00 Set Includes: 16 audiocassettes Section One: Section 2: Exponential Returns $ – 4 Audio Tapes & Booklet Section 3: Writing Covered Calls – 4 Audio Tapes & a Booklet Section 4: Enchaced Returns/Minimized Taxes – 4 Audio Tapes & a Booklet Section 5: Zero to Zillions Video – 1 VHS Tape… |
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Turtle Secrets: How to Trade the Turtle Concepts [VHS] … |
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VHS Boosting Returns: New Twists to Time-tested Trading Techniques with Tom Gentile $64.95 Discover powerful twists to proven trading techniques that will help boost trading profits – in good or bearish markets. Tom Gentile’s comprehensive workshop, with online support manual, features an array of time-tested trading concepts and shows how adding his own, proprietary options strategies to these methods lets you boost returns, limit risk and profit from the directional moves. From his fr… |
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Sports Champions $9.50 Sony Sports Champions for the PS3 will let you and up to 4 of your friends physically engage in a number of competitive sporting activities as you go head to head in six events. Choose from one of 10 athletes from around the world to play exciting sporting activities that include Disc Golf, Gladiator Duel, Beach Volleyball, Archery, Table Tennis and Bocce. Every event brings its own unique twist t… |
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Disgaea 4: A Promise Unforgotten (Premium Edition) $35.68 Bigger, funnier, and more tactical than ever before, the grandfather of the strategy RPG genre returns with its best HD entry yet in Disgaea 4! A hilarious fantasy world full of vampires, werewolves, and the like combines with deep strategy roleplaying gameplay, including series mainstays like the ability to lift and throw your allies and Geoblocks, exciting stat modifying spaces on the battlefiel… |
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Guitar Hero III: Legends of Rock – PS2 $3.99 Unleash your inner rock legend with Guitar Hero III: Legends of Rock. Face off against guitar icon Slash, from Guns N’ Roses, and others in insane boss battles featuring original tracks recorded exclusively for Guitar Hero III: Legends of Rock. Defeat opponents to achieve legendary status in head-to-head competition including the all-new Guitar Battle or share the glory with a friend in the ne… |
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Sid Meier’s Civilization V $16.36 Sid Meier’s Civilization V PC 2K Games… |
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Corel VideoStudio Pro X4 Ultimate $44.98 Multimonitor support–2 monitor view. View larger. Multimonitor UI–left-hand screen image View larger. Multimonitor UI–right-hand screen image. View larger. Main editing interface. View larger. Stop motion animation UI. View larger. Multi-trim Video UI. View larger. Add/edit chapter UI. View larger. Corel VideoStudio Pro X4 is the powerful,… |
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Sid Meier’s Civilization IV $1.88 With over 6 million units sold and unprecedented critical acclaim from fans and press around the world, Sid Meier’s Civilization is recognized as one of the greatest PC game franchises of all-time. Now, Sid Meier and Firaxis Games will take this incredibly fun and addictive game to new heights by adding new ways to play and win, new tools to manage and expand your civilization, all-new easy … |
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101 Option Trading Secrets by Trester, Kenneth R. Edition , 0 $30.49 Introducing Ken Trester's book-101 Option Trading Secrets Author of the best-selling Complete Option Player, now in its 4th edition, Ken Trester is acclaimed for rendering complex subjects into easy-to-understand concepts and ideas. Through his books, seminars, and as a college professor, Ken Trester has educated tens of thousands of investors about the power and benefits of options. His award-winning programs give ordinary investors an edge in the professional arena. In this 336 page book, Ken condenses his options expertise and 30 years of extensive trading experience into 101 concise secrets that can help any investor to maximize their gains. its fourth edition, is among the best selling options books ever. A former computer science professor Ken has taught many popular course on options trading. In addition, he teaches a limited number of individuals through intensive options seminars. Many former students have been very successful using the strategies he espouses. Ken has an MBA and has worked as an investment manager. He developed an economical software program for personal computers, OPTION MASTER, that allows small investors to easily determine an option's true theoretical value. |
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Automated Option Trading by Izraylevich, Sergey; Tsudikman, Vadim Edition , 1 $66.49 The first and only book of its kind, Automated Options Trading describes a comprehensive, step-by-step process for creating automated options trading systems. Using the authors’ techniques, sophisticated traders can create powerful frameworks for the consistent, disciplined realization of well-defined, formalized, and carefully-tested trading strategies based on their specific requirements. Unlike other books on automated trading, this book focuses specifically on the unique requirements of options, reflecting philosophy, logic, quantitative tools, and valuation procedures that are completely different from those used in conventional automated trading algorithms. Every facet of the authors’ approach is optimized for options, including strategy development and optimization; capital allocation; risk management; performance measurement; back-testing and walk-forward analysis; and trade execution. The authors’ system reflects a continuous process of valuation, structuring and long-term management of investment portfolios (not just individual instruments), introducing systematic approaches for handling portfolios containing option combinations related to different underlying assets. With these techniques, it is finally possible to effectively automate options trading at the portfolio level. This book will be an indispensable resource for serious options traders working individually, in hedge funds, or in other institutions. |
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Option Spread Trading (Hardcover) $133.29 "A practical guide to unlocking the power of option spreads When dealing with option spreads your looking to purchase one option in conjunction with the sale of another option. If managed properly, these spreads can provide experienced investors with the potential for large returns without undertaking a great deal of risk. Option Spread Trading provides a comprehensive, yet easy-to-understand explanation of option spreads, and shows you how to select the best spread strategy for any given market outlook. Along the way, author Russell Rhoads discusses spread strategies that can be used to profit from a strong up or down directional move in a stock, a stagnant market, or a highly volatile market. He also details how you can harness the leverage of optionsto create a low-risk position that provides the potential for a big profit. All manner of spreads are covered, from calendar and horizontal spreads to vertical and diagonal spreads. Highlights how you can monitor and adjust an existing spread position and provides tips on how to exit a spread trade. Includes exercises and examples to test and reinforce your knowledge of the concepts presented. Option spread trading has become increasingly popular with active traders and investors. Gain a better understanding of this powerful approach with Option Spread Trading as your guide."– |
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Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Natenberg, Sheldon Edition ILL, 1 $40.49 One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to reflect the most current developments and trends in option products and trading strategies.Featuring:Pricing modelsVolatility considerationsBasic and advanced trading strategiesRisk management techniquesAnd more!Written in a clear, easy-to-understand fashion, Option Volatility & Pricing points out the key concepts essential to successful trading. Drawing on his experience as a professional trader, author Sheldon Natenberg examines both the theory and reality of option trading. He presents the foundations of option theory explaining how this theory can be used to identify and exploit trading opportunities. Option Volatility & Pricing teaches you to use a wide variety of trading strategies and shows you how to select the strategy that best fits your view of market conditions and individual risk tolerance.New sections include:Expanded coverage of stock optionStrategies for stock index futures and optionsA broader, more in-depth discussion volatilityAnalysis of volatility skewsIntermarket spreading with options |
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Trading Option Greeks $71.63 Passarelli, a former floor trader who now acts as a consultant, offers this basic guide to the options market which will instruct investors on how to execute trades and evaluate stock regardless of market conditions. The author avoids the more technical and math-oriented aspects of options trading by offering simple explanations of the trading "greeks" (delta, gamma, theta, vega, rho), which are common tools used to determine the volatility, time to expiration, underlying price and interest rates of various options. These tips are designed to give investors a competitive edge in the marketplace when it comes to determining the most accurate price for an option, as well as the largest profit margin. Annotation )2008 Book News, Inc., Portland, OR (booknews.com) |
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Option Trading By Sinclair, Euan $69.26 Author: Sinclair, Euan Series Title: Wiley Trading Subtitle: Pricing and Volatility Strategies and Techniques Publication Date: 2010/06/21 Number of Pages: 298 Binding Type: Hardcover Language: English Depth: 1.25 Width: 6.25 Height: 9.25 |
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Automated Options Trading (Hardcover) $134.47 The first and only book of its kind, Automated Options Trading describes a comprehensive, step-by-step process for creating automated options trading systems. Using the authors’ techniques, sophisticated traders can create powerful frameworks for the consistent, disciplined realization of well-defined, formalized, and carefully-tested trading strategies based on their specific requirements. Unlike other books on automated trading, this book focuses specifically on the unique requirements of options, reflecting philosophy, logic, quantitative tools, and valuation procedures that are completely different from those used in conventional automated trading algorithms. Every facet of the authors’ approach is optimized for options, including strategy development and optimization; capital allocation; risk management; performance measurement; back-testing and walk-forward analysis; and trade execution. The authors’ system reflects a continuous process of valuation, structuring and long-term management of investment portfolios (not just individual instruments), introducing systematic approaches for handling portfolios containing option combinations related to different underlying assets. With these techniques, it is finally possible to effectively automate options trading at the portfolio level. This book will be an indispensable resource for serious options traders working individually, in hedge funds, or in other institutions. |
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101 Option Trading Secrets $5.94 New – Introducing Ken Trester’s book-101 Option Trading Secrets Author of the best-selling Complete Option Player, now in its 4th edition, Ken Trester is acclaimed for rendering complex subjects into easy-to-understand concepts and ideas. Through his books, seminars, and as a college professor, Ken Trester has educated tens of thousands of investors about the power and benefits of options. His award-winning programs give ordinary investors an edge in the professional arena. In this 336 page book |
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Automated Option Trading: Create, Optimize, and Test Automated Trading Systems $59.62 Used – The first and only book of its kind, “Automated Options Trading “describes a comprehensive, step-by-step process for creating automated options trading systems. Using the authors’ techniques, sophisticated traders can create powerful frameworks for the consistent, disciplined realization of well-defined, formalized, and carefully-tested trading strategies based on their specific requirements. Unlike other books on automated trading, this book focuses specifically on the unique requirement |
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Automated Option Trading: Create, Optimize, and Test Automated Trading Systems $59.62 New – The first and only book of its kind, “Automated Options Trading “describes a comprehensive, step-by-step process for creating automated options trading systems. Using the authors’ techniques, sophisticated traders can create powerful frameworks for the consistent, disciplined realization of well-defined, formalized, and carefully-tested trading strategies based on their specific requirements. Unlike other books on automated trading, this book focuses specifically on the unique requirements |
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Basic Black-Scholes: Option Pricing and Trading $35 New – This new book gives extremely clear explanations of Black-Scholes option pricing theory, and discusses direct applications of the theory to option trading. The presentation does not go far beyond basic Black-Scholes for three reasons: First, a novice need not go far beyond Black-Scholes to make money in the options markets; Second, all high-level option pricing theory is simply an extension of Black-Scholes; and Third, there already exist many books that look far beyond Black-Scholes witho |
