Trading Index Options

Information on Trading Index Options

Trading Index Options

Anyone involved in Options trading must remember that as much as 70% of a stock’s performance is based not on its well researched intrinsic base, but on the direction of the market. The challenge in trading is in finding ways to bypass hard to predict individual stocks and put the speculators money where it should be – directly in the market.

There is a popular book titled Trading Index Options that can help you in all this. This 310 page extensive book has been authored by James B. Bittman and published by McGraw Hill. The book has been written for active traders and contains information and advice that they can use to succeed daily. This book is also available in a disk version.

Trading Index Options explains how option prices behave (helping you understand and predict market movements and staying focused), provides proven techniques to understand risk and limit your exposure, shows you how you can take advantage of the unique flexibility of index options, it also covers trading psychology, learning to trade with discipline, strategies from basic to complex including – buying, selling, spreads, straddles and more with case studies to demonstrate each.

Contents of Trading Index Options.

Basic Concepts and Strategies

The Basics of Index Options
Diagrams of Basic to Advanced Strategies
Option Values and How They Change

Section 2: Option Price Behavior and Volatility

Pricing and Graphing Strategies with OP-EVAL3
The Greeks
Volatility
The Importance of Futures Prices

Trading Strategies

Buying Options
Selling Options
Vertical Spreads
Straddles and Strangles
Ratio Spreads
Time Spreads
Case Studies

Managing Positions

Alternatives for Managing a Profitable Position
Alternatives for Managing an Unprofitable Position

The Psychology of Trading

Thinking Like a Trader

Trading Index Options have been reviewed well. It is a good option to learn the tricks. We recommend that you educate yourself prior to tarding index options.