Visual guide to Options PDF - PDF Trader (2024)

Visual guide to Options PDF (by Jared Levy) is the practical, visual guide to the complex world of options investing loaded with tactics and tips for market success.

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Category: Options

Author: Jared A. Levy

Language: English

Free download link: At the end of the post

Introduction

The practical, visual guide to the complex world of options investing loaded with tactics and tips for market success

Options provide a diverse, strategic, advantaged approach to trading that can significantly limit the overall risks of a trade or yield additional returns. For many people, investing in options seem so risky that they fail to capitalize on this potentially lucrative opportunity that can unlock doors you would never imagine. TheBloomberg Visual Guide to Optionsuses full-color charts and other illustrations to help readers understand the mechanics and actionable details of the marketplace and how to profit from options trading.

An accessible reference volume for investment professionals of all levels of experience, the book takes a direct and to the point approach to the topic, enhanced by colorful and visually effective graphs and charts of the options market. Discussing the functions of the exchanges, how they work, and the strategies for taking advantage of the market while steering clear of risk, this is the ultimate visual guide to understanding the world of trading options.

  • Immerses readers in the exciting world of options trading through the use of full-color graphs and charts
  • Provides tips, tricks, and real scenarios for successful trading, whether trading in a bull, bear, or neutral market
  • Presents detailed, unique strategies for understanding and succeeding in the real options market
  • Includes special learning aids, such as Key Point Summaries, Do-It-Yourself Exercises, Step-By-Step Instructions, and much more

Putting even the most complex options trading issues at your fingertips in an easy-to-understand, readily accessible format,Bloomberg Visual Guide to Optionsis a must-have trading reference for professional investors.

Table of Contents- Visual guide to Options PDF

How to Use This Book ix

Acknowledgments xi

Introduction xiii

Chapter 1: The World of Options 1

Chapter 2: Tools and Knowledge for Trading Options Professionally 51

Chapter 3: Visualizing the Greeks 105

Chapter 4: Visualizing Basic Strategies: Trading Calls and Puts 139

Chapter 5: Visualizing and Trading Vertical Spreads 233

Chapter 6: Visualizing and Trading Butterflies, Condors, and Complex Spreads 287

Chapter 7: Managing Your Risk: Tactics, Tips, and Volatility Tricks 329

Appendix: Bloomberg Functionality Cheat Sheet 375

About the Author 377

Index 379

Reviews

“Jared Levy explains options from a professional trader’s point of view without defaulting to just another explication of complex option pricing models. This graphical approach reveals the keys in those models and Jared’s explanations reveal how to trade them. In short—a very useful resource!”
—Bill Long,Managing Director, The ReThink Group; andDenise Shull,CEO, The ReThink Group and author,Market Mind Games

“I am a very visual trader. It was refreshing to read how my good colleague and friend, Jared Levy, went through chapters on Greeks and Risk Management within a visual setting. I also liked his quotes of Rumi and Sun Tzu, most appropriate for all trader-warriors.”
—Fari Hamzei,founder, Hamzei Analytics, LLC

TheBloomberg Financial Series Visual Guidescover today’s most relevant finance and trading topics in a comprehensive, yet easy-to-follow style. The content is presented in the most visual of manners thus bringing to life key concepts for finance professionals and truly lives up to the series name by examining concepts in a highly visual way―all charts are in color and presented in a large format for ease of use. Other strong visual attributes include consistent elements that function as additional learning aids for the reader, such as: Key Points, Definitions, Step-by-Step, Do It Yourself, andBloomberg Financial Series Visual Guidefunctionality.

About the author

Jared A. Levy

is the Senior Equities Strategist for Zacks Investment Research and manages several trading services, which can be found along with his blog at his website JaredLevy.com. He is also a Managing Partner of Alternative Investments at Belpointe Capital in Greenwich, Connecticut.

He has served as a market maker, specialist, and risk manager on three major stock exchanges, completely immersed in the finance and options industries since the age of eighteen. He published his first book,Your Options Handbook, by the age of thirty-one.

Jared has worked for some of the most respected option trading firms in the world and has himself traded millions of options contracts and millions of shares of stock successfully over the years.

Levy’s raw commentary and editorial insights have been featured in many industry publications over the years and has touched millions of investors around the globe. He has been a CNBCFast Moneycontributing cast member and won an Emmy for his daily video,Trader Cast. Jared regularly appears and offers commentary and strategy on Bloomberg, Fox Business, CNN Radio, and other major TV and radio networks.

Download ebook Visual guide to Options PDF

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Visual guide to Options PDF - PDF Trader (2024)

FAQs

How to learn option trading step by step? ›

  1. How to Trade Options in 5 Steps.
  2. 1.Assess Your Readiness.
  3. 2.Choose a Broker and Get Approved to Trade Options.
  4. 3.Create a Trading Plan.
  5. 4.Understand the Tax Implications.
  6. 5.Continuous Learning and Risk Management.
  7. Buying Calls (Long Calls)
  8. Buying Puts (Long Puts)

What are the four types of options? ›

There are four basic options positions: buying a call option, selling a call option, buying a put option, and selling a put option. When trading options, the buyer is betting that the market price of an underlying asset will exceed a predetermined price, called the strike price, while the seller is betting it won't.

How to invest in options for beginners? ›

You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. Generally speaking, call buyers and put sellers profit when the underlying stock rises in value. Put buyers and call sellers profit when it falls.

How to learn options trading from scratch? ›

Description
  1. Learn the basics of options.
  2. CALL and PUT option concepts.
  3. Option Chain concepts.
  4. Candle Sticks and its use.
  5. Option greeks - Theta, Gamma, Delta, Vega, etc.
  6. Option Strategies - Covered Call. Cash Secured Put. Long Straddle. Short Straddle. Iron Butterfly. ...
  7. Margin and Risk Management.
  8. Adjustment Techniques.

Can you learn option trading yourself? ›

The process for how to learn stock options trading is quite simple. You need to immerse yourself in educational resources, and then put what you've learned to practice. But – what we recommend is to practice with paper trading before you actually spend real money on options.

What is the most profitable option strategy? ›

1. Bull Call Spread. A bull call spread strategy is driven by a bullish outlook. It involves purchasing a call option with a lower strike price while concurrently selling one with a higher strike price, positioning you to profit from an anticipated gradual increase in the stock's value.

What is safest option strategy? ›

The safest options strategy for generating income is selling cash-secured puts. An options trader sells put options with this strategy and collects premiums while taking on the obligation to buy the underlying stock at the strike price if assigned.

How much money do you need for options trading? ›

How Much Money Do You Need to Trade Options? Broker requirements can vary from zero to a few thousand dollars. Most brokers require account sizes of $2,000 or less. However, trading an option account with only a few hundred dollars is not prudent.

What is the 3:30 formula in option trading? ›

The 3-30 rule in the stock market suggests that a stock's price tends to move in cycles, with the first 3 days after a major event often showing the most significant price change. Then, there's usually a period of around 30 days where the stock's price stabilizes or corrects before potentially starting a new cycle.

What is the most common option strategy? ›

A long call is considered to be the most basic options strategy. It's a contract that gives the owner the right to buy an underlying asset, e.g. 100 shares of a stock, by a certain expiration date, at a predetermined price (called the strike price).

How do you understand calls and puts? ›

A call option is in the money (ITM) if the underlying asset's price is above the strike price. A put option is ITM if the underlying asset's price is below the strike price. For calls, it's any strike lower than the price of the underlying asset.

Which option strategy is best for beginners? ›

5 options trading strategies for beginners
  1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. ...
  2. Covered call. ...
  3. Long put. ...
  4. Short put. ...
  5. Married put.
Mar 28, 2024

Can you start trading options with $100? ›

Yes, you can technically start trading with $100 but it depends on what you are trying to trade and the strategy you are employing. Depending on that, brokerages may ask for a minimum deposit in your account that could be higher than $100. But for all intents and purposes, yes, you can start trading with $100.

Can you make a living trading options? ›

How Much Does an Options Trader Make? It's realistic for an options trader to make at least $100,000 per year or more full-time, but it's important to realize that most traders won't make this amount. It takes hard work, mental discipline, and proper capital for a trader to make this kind of money.

How fast can I learn option trading? ›

Well, it really depends on how much time and effort you're willing to put in. Some people might be able to pick it up in a few weeks, while others might take months or even years to fully grasp the concepts. But, one thing that can definitely speed up the learning process is by learning from the right sources.

Which option trading is best for beginners? ›

5 options trading strategies for beginners
  1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. ...
  2. Covered call. ...
  3. Long put. ...
  4. Short put. ...
  5. Married put.
Mar 28, 2024

How much money do I need to start option trading? ›

How Much Money Do You Need to Trade Options? Broker requirements can vary from zero to a few thousand dollars. Most brokers require account sizes of $2,000 or less. However, trading an option account with only a few hundred dollars is not prudent.

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