Options Trading 101: From Theory to Application

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Morgan James Publishing, Oct 1, 2007 - Business & Economics - 472 pages
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Discover Powerful and Profitable Option Trading Strategies That Can Limit Your Risk While Multiplying Your Profits in Today's Markets. Options Trading 101 was written as a complete introductory guide for investors and traders who want to understand the world of options. While it is labeled as an introductory book, it is anything but a general overview. It starts by exploring the most fundamental concepts of options trading and ends with some basic strategies that traders will fully understand and be able to use immediately. In a clear, concise way readers will be led through the most important topics that are necessary to master and advance with options trading. Options Trading 101 makes use of many fun examples including Gordon Gekko's mistake in the hit movie "Wall Street" from not understanding put-call parity.
 

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Contents

Introduction to Options
Option Pricing Principles
Profit and Loss Diagrams
Option Market Mechanics
PutCall Parity and Synthetic Options
An Introduction to Volatility
Covered Calls
Long Calls and Long Puts
Vertical Spreads
Hedging with Options
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About the author (2007)

Bill Johnson brings a unique blend of real-world trading experience combined with academic theory. He is the founder of Options A to Z.com; a website dedicated to teaching the art & science of options trading to traders around the world.
His trading career began in 1995 after being hired by the discount giant, Charles Schwab, where he worked for an active trader options team in addition to specialized technical and fundamental analysis teams.
He gained invaluable experience while working rotations for Schwab's trade support desk, risk assessment, and initial public offerings (IPOs). Bill was also active in training and taught weeklong courses to hundreds of Schwab's advanced brokers in Option Pricing and Hedging as well as Economics of Financial Markets and wrote the corresponding compliance-approved course manuals.
In 2000, he was hired by 21st Century Investor as the Chief Options Strategist and wrote eight books ranging from options, futures, forex, volatility, and the Federal Reserve. Three were selected as supplemental texts at universities. He created two online educational courses featuring options and single-stock futures where more than 300,000 students have enrolled worldwide. Bill was also a host for the 21st Century Alert Radio Show on WNN 1470AM.
In 2007, he became the Director of Education for Options University where he wrote Options 101: From Theory to Application and was a keynote speaker for many financial seminars, including a month-long tour in Australia, Singapore, Jakarta, and Kuala Lumpur.
He has articles published in Active Trader, Buy-Sell-Hold, SFO (Stocks, Futures, & Option), Investor's Observer, and Smart Money magazines and has also been quoted in Barron's. He was also invited to be a speaker for the Option's Institute Master Sessions at the Chicago Board Options Exchange (CBOE) and the Quantitative and Computational Finance Day (QCF) at Georgia Institute of Technology.
Bill also teaches Financial Risk Management as an adjunct professor for Florida International University (FIU), which is one of the largest research universities in the country. He received a Master's Degree in Economics in 1996 and an M.B.A. in 1999 from the University of Central Florida.

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