Trading Options for Edge: A Professional Guide to Volatility Trading

Trading Options for Edge: A Professional Guide to Volatility Trading will teach trade evaluation, using Greeks, trading various spreads under different market conditions, portfolio-building, and risk management. Sebastian’s approach will help traders understand how to find edge, what kind of trade under what conditions will capture edge, and how to create and successfully hedge. The book demonstrates how to structure a portfolio of trades that makes more money with less risk. Introduction: If this is your first options book, you picked up the wrong book. This should be read after you have read books that explain options theory, because this book is meant for experienced options traders. Have you been through a “mentoring” program and been disappointed by your preparedness? Then this is the right book for you. Have you read books by Sheldon Natenberg, Larry McMillian, etc.? Then this book is for you. Have you been trading options for a year or more and understand the Greeks . . . for the most part? Then this book is for you. If your answer was no to any of these, you may want to consider reading books that will get you to this point. Then you will be ready to pick this one up. Of course, anyone can read and learn from this book, but know that this was written for people with background knowledge, and will assume some of the basics are already understood.  This book is divided into four main sections: Part 1: Professional Lessons Every Trader Needs to Know Part 2: Using Spreads Part 3: Global Risk and Volatility Part 4: Appendix When you finish reading, I hope many questions have been answered, and you are armed with knowledge to help you build a portfolio of trades, and how to manage global risk across your book of trades. Contents: Trading in Options Risk Management Market Makers, Risk, and the Individual Trader Volatility What Is Edge? Locking in Edge A Review of Basic Spreads A Closer Look at Advanced Spreads Adding Edge to Spreads Butterflies and Condors The Front Spread Calendar Spreads How a Market Maker Trades Portfolio Greeks Trading Volatility Trading VIX ETPs Trading Options for Edge: A Professional Guide to Volatility Trading By Mark Sebastian, L. Celeste Taylor pdf