Description

Options University – Ron Ianieri – Option Theory & Trading (optionsuniversity.com)

Ron Ianieri

ISBN: 978-0-470-45578-4

368 pages

June 2009

 

 

Praise for Options Theory and Trading

“I’ve had the pleasure of instructing with Ron Ianieri at quite a few reside seminars for merchants and buyers, and one factor is for sure-Ron is aware of choices! Now Ron has created an intensive, easy-to-read information that you could profit from in some ways, whether or not you’re skilled in choices buying and selling or simply beginning out. I consider you will discover Options Theory and Trading like Ron himself . . . full of information, entertaining, fast-paced, and a pleasure to be round.”
Price Headley, CFA, CMT, founding father of HugeTrends.com

“I’ve had the pleasure of knowing and working with Ron for many years now. When managing funds in our asset management company, Ron has always been our ‘go-to guy’ on anything options-related. I’ve also taught a number of seminars side by side with Ron over the years where I’ve always come home knowing more about options than when I left! The man is truly the ‘pitbull’ of derivatives.”
Peter Reznicek, Chief Equity Strategist, www.ShadowTrader.web

“What a pleasure to learn Ron Ianieri’s new ebook, Options Theory and Trading. As a market technician for the final thirty-three years I’m at all times searching for technical strikes in shares, and I depend on Ron’s experience for the optimum choices technique wanted for every particular transfer I understand occurring within the markets. Ron’s ‘in the pits’ expertise serves to right the misinformation in a lot of the printed materials and lessons presently obtainable to the unsuspecting choices dealer.”
David Steelsmith Elliott, Wallstreetteachers.com, World’s #1 Market Timer, USIC

“Ron’s expertise in options is as high as there is and his experience is unparalleled. Ron not only knows the answer but can explain it in a ‘101’ fashion that is simple enough for even a novice to understand. His book is written in the same fashion. Ron not only explains the ‘how to’s’ but also the ‘how and why’ which other books just don’t seem to do. As a day trader/swing trader by nature, I also appreciate Ron incorporating real chart examples for us directional traders. For these reasons, I would highly recommend Ron’s book to anyone interested in using options.”
Chris Rowe, The Trend Rider, www.tycoonresearch.com

 

Table of Contents

Preface.

Acknowledgments.

PART I Understanding Terms and Theory.

CHAPTER 1 Options Basics and Terms.

Calls and Puts.

Classes and Series.

In the Money, Out of the Money, and At the Money.

Premium and Time Decay.

Intrinsic versus Extrinsic Value.

Volatility.

CHAPTER 2 Calls and Puts.

Call Options.

Put Options.

CHAPTER 3 Option Theory.

Option Pricing Models.

Fundamentals of Pricing Models.

Types of Pricing Models.

Inputs of the Options Pricing Model.

Outputs of the Pricing Model.

CHAPTER 4 Option Theory and the Greeks.

Delta.

Gamma.

Vega.

Theta.

Second-Tier Greeks.

CHAPTER 5 Synthetic Positions.

Defining Synthetics.

Synthetic Stock.

Synthetic Call.

Synthetic Put.

PART II Basic Strategies.

CHAPTER 6 Introduction to Trading Strategies.

Directional Trading Strategies.

In-the-Money, Out-of-the-Money, and At-the-Money Options.

Leverage and Risk.

CHAPTER 7 Covered Call/Buy-Write Strategy.

Foundations of the Strategy.

Performance in Different Scenarios.

Lean.

Rolling the Position.

Examples.

Covered Call/Buy-Write Synopsis.

CHAPTER 8 The Covered Put/Sell-Write Strategy.

Reviewing Selling Short.

Foundations of the Strategy.

Performance in Different Scenarios.

Lean.

Rolling the Position.

Examples.

Covered Put/Sell-Write Synopsis.

CHAPTER 9 The Protective Put Strategy.

Foundations of the Strategy.

Performance in Different Scenarios.

Lean.

When to Use the Protective Put Strategy.

Examples.

Protective Put Synopsis.

CHAPTER 10 The Synthetic Put/Protective Call Strategy.

Foundations of the Strategy.

Performance in Different Scenarios.

Lean.

When to Use the Protective Call Strategy.

Examples.

Synthetic Put Synopsis.

CHAPTER 11 The Collar Strategy.

Foundations of the Strategy.

Performance in Different Scenarios.

Lean.

Examples.

Collar Synopsis.

PART III Advanced Strategies: Spread Trading, Straddles, and Strangles.

CHAPTER 12 Vertical Spreads.

Construction of a Vertical Spread.

Value and the Vertical Spread.

Spread Prices Fluctuate.

Factors that Affect Spread Pricing.

Rolling the Position.

Time Decay and Volatility Trading Opportunities.

An Imaginary Spread Scenario.

Recap with Special Insights.

Examples.

Bull Spread Synopsis.

Bear Spread Synopsis.

CHAPTER 13 Time Spreads.

Construction of the Time Spread.

Behavior of the Spread.

Effects of Stock Price on the Time Spread.

Effects of Volatility on the Time Spread.

Buyer Risk and Reward.

Seller Risk and Reward.

Rolling the Position.

Concluding Thoughts.

Examples.

Time Spread Synopsis.

CHAPTER 14 The Stock Replacement/Covered Call Strategy (Diagonal Spread).

When to Use the Diagonal Spread.

Rolling the Position.

Conclusion.

CHAPTER 15 Straddles.

What Is a Straddle?

Straddle Scenarios.

How It Works.

Factors that Affect Straddle Prices.

Risks and Rewards.

Break-Even, Maximum Reward, and Maximum Risk.

Conclusion.

Examples.

Long Straddle Synopsis.

Short Straddle Synopsis.

CHAPTER 16 Strangles.

What Is a Strangle?

Strangle Scenarios.

How It Works.

Factors that Affect Strangle Prices.

Risks and Rewards.

Break-Even, Maximum Reward, and Maximum Risk.

Conclusion.

Examples.

Long Strangle Synopsis.

Short Strangle Synopsis.

PART IV Combination Strategies.

CHAPTER 17 The Butterfly.

Constructing the Butterfly.

Why Use Butterflies?

Butterfly and Synthetic Positions.

What Will a Butterfly Cost?

Butterfly and the Greeks.

Iron Butterfly.

Long Iron Butterfly.

Using the Butterfly.

Long Butterfly Synopsis.

Short Butterfly Synopsis.

CHAPTER 18 The Condor.

Long Condor.

Short Condor.

Why Use Condors?.

How It Works.

Condors versus Butterflies.

Condors and the Greeks.

Iron Condors.

How Do We Use Condors?

Long Condor Synopsis.

Short Condor Synopsis.

Conclusion.

Appendix: Five Trading Sheets.

About the Author.

Index.

Author Information

Ron Ianieri is the cofounder and previous chief choices strategist for Options University, and the founder and Chief Options Strategist of ION Options, his new agency that gives programs, providers, and coaching to aspiring choices merchants. Ianieri’s Option Theory and Trading Course is taken into account probably the greatest choices coaching instruments within the trade. He has appeared on CNBC, CNN, and Fox Business News. Ianieri graduated from St. Joseph’s University in Philadelphia with a level in finance.

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