Description
In this book, a hedge fund manager and an option trading coach show you how to earn steady, reliable option income trading options by managing your trades and running your option portfolio as a real business following the fundamental principles of an "insurance company". Mark Sebastian (TheStreet.com, OptionPit.com) and hedge fund manager Dennis Chen (Smart Income Partners, Ltd.) explain why this particular business model offers such an attractive practical model for individual traders, and teaches the specific "how to"s you need to create and operate your personal option income portfolio this way. Sebastian and Chen begin by introducing their exclusive business model framework, identifying the option concepts most critical to long-term trading success, and presenting core income strategies based on selling rather than purchasing options. Next, they walk you through setting up your "business," offering a complete "operations manual" addressing each practical issue you'll face. The authors teach key lessons they've learned from their own experience -- including how to maintain trading discipline, manage volatility and risk, account for the "other" Greeks, and handle payments. Packed with real-world examples, this book reveals how professional money managers and hedge funds really manage their option trading operations -- and guides you step-by-step through setting up your portfolio and running your trades to earn the same high levels of income.
Table of Contents
Introduction 1
Part I: The Framework
Chapter 1: The Insurance Business 5
Chapter 2: Trade Selection 19
Chapter 3: Risk Management 31
Chapter 4: Trade Execution 43
Chapter 5: The Trading Plan 55
Chapter 6: Trading Infrastructure 63
Chapter 7: Learning Processes 73
Part II: Implementing the Business
Chapter 8: Understanding Volatility 81
Chapter 9: Most Used Strategies 89
Chapter 10: Operating the Business: Putting Together TOMIC 1.0 from A to Z 121
Part III: Lessons from the Trading Floor
Chapter 11: Lessons from the Trading Floor on Volatility 131
Chapter 12: Lessons from the Trading Floor on Risk Management 145
Chapter 13: Lessons from the Trading Floor on Trading and Execution 155
Chapter 14: Lessons from the Trading Floor on the Other Greeks 173
Chapter 15: The Beginning 191
Appendix A: Recommended Reading 195
Appendix B: Strategy Learning Sequence 199
Appendix C: OptionPit.com 201
Appendix D: Kite Spread 203
Index 205
Part I: The Framework
Chapter 1: The Insurance Business 5
Chapter 2: Trade Selection 19
Chapter 3: Risk Management 31
Chapter 4: Trade Execution 43
Chapter 5: The Trading Plan 55
Chapter 6: Trading Infrastructure 63
Chapter 7: Learning Processes 73
Part II: Implementing the Business
Chapter 8: Understanding Volatility 81
Chapter 9: Most Used Strategies 89
Chapter 10: Operating the Business: Putting Together TOMIC 1.0 from A to Z 121
Part III: Lessons from the Trading Floor
Chapter 11: Lessons from the Trading Floor on Volatility 131
Chapter 12: Lessons from the Trading Floor on Risk Management 145
Chapter 13: Lessons from the Trading Floor on Trading and Execution 155
Chapter 14: Lessons from the Trading Floor on the Other Greeks 173
Chapter 15: The Beginning 191
Appendix A: Recommended Reading 195
Appendix B: Strategy Learning Sequence 199
Appendix C: OptionPit.com 201
Appendix D: Kite Spread 203
Index 205
Purchase Info 
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Option Trader's Hedge Fund, The: A Business Framework for Trading Equity and Index Options, CourseSmart eTextbook
Format: Electronic Book
$29.99 | ISBN-13: 978-0-13-282347-0
