0

    Think Like an Option Trader: How to Profit by Moving from Stocks to Options

    by Michael Benklifa


    eBook

    $42.49
    $42.49
     $44.99 | Save 6%

    Customer Reviews

      ISBN-13: 9780133065374
    • Publisher: Pearson Education
    • Publication date: 05/22/2013
    • Sold by: Barnes & Noble
    • Format: eBook
    • Pages: 99998
    • File size: 22 MB
    • Note: This product may take a few minutes to download.

    Michael Benklifa is a professional options trader and President of Othello Consulting, where he manages millions of dollars in option trades for private investors every month. He formerly served as a Financial Advisor for UBS and as a Mergers & Acquisitions analyst for several large pharmaceutical companies. Benklifa holds an MBA from Texas A&M, as well as a Diplôme (Masters in Management) from Ecole Superieure de Commerce in France and a BA in Philosophy from the University of Texas. He is the author of Profiting with Iron Condor Options: Strategies from the Frontline for Trading in Up or Down Markets.

    Table of Contents

    Preface     xi
    Introduction: Why Traders Fail     1
    Is Failure a Flaw?    2
    Blaming Emotions     2
    Blaming Systems     3
    Successful Traders Versus Successful Trading     5
    Trading for a Living     6
    Trade for the Right Reasons     6
    The Ability to Duplicate a Strategy     7
    Correlation Versus Causation     7
    Don’t Trade to Make Money     9
    Leverage     10
    What Kind of Trader Are You?     10
    A Single Difference Goes a Long Way     11
    A Limited Worldview     13

    Chapter 1   Understanding Options     15
    What Is a Stock?     15
    What Is an Option?     18
    The Bet You Wouldn’t Make     18
    The Options Trader’s Toolbox     22

    Chapter 2  What Is Price?     33
    How a Stock Trader Looks at Stock Price     33
    How Options Traders Look at Stock Price     37
    How an Options Trader Looks at an Option’s Price     48

    Chapter 3  Pure Options Trading: Building Your Own Trade     67
    Basic Greek Concepts     69
    Build 1: Making a Directionless Trade     74
    Build 2: Reducing Your Risk     78
    Build 3: Augmented Returns     88
    Bending the Curve     95
    The Options Trader’s Toolbox: Synthetic Straddles     96
    Evolving a Trade     98
    In-, At-, and Out-of-the-Money Trades     98

    Chapter 4  Situational Trading     99
    Known Knowns     100
    Analyzing Situations     105
    Building a Directional Trade     106
    Known Unknowns     126
    Unknown Unknowns     137

    Chapter 5  Risk Management     157
    Responsibility in Trading     157
    Strategy Is Risk Management     159
    How a Stock Trader Measures Risk     160
    Defined Risk for Options Traders     163
    Layering and Unlayering Trades     164
    Trades Cannot Be Fixed, Just Replaced     165
    Portfolio Risk     166
    Concluding Remarks     168
    Appendix: Quantum Physics and Trading—The Price Uncertainty Principle     171
    Index     175

    Available on NOOK devices and apps

    • NOOK eReaders
    • NOOK GlowLight 4 Plus
    • NOOK GlowLight 4e
    • NOOK GlowLight 4
    • NOOK GlowLight Plus 7.8"
    • NOOK GlowLight 3
    • NOOK GlowLight Plus 6"
    • NOOK Tablets
    • NOOK 9" Lenovo Tablet (Arctic Grey and Frost Blue)
    • NOOK 10" HD Lenovo Tablet
    • NOOK Tablet 7" & 10.1"
    • NOOK by Samsung Galaxy Tab 7.0 [Tab A and Tab 4]
    • NOOK by Samsung [Tab 4 10.1, S2 & E]
    • Free NOOK Reading Apps
    • NOOK for iOS
    • NOOK for Android

    Want a NOOK? Explore Now

    THE SECRET TO PROFITING FROM OPTIONS:

    THINK LIKE A PROFESSIONAL OPTION TRADER, NOT A STOCK TRADER!

    • Understand the unique dynamics of options trades and markets
    • Practical, concise insights based on actual option trading scenarios
    • Master trade selection, risk management, and more
    • By professional options trader Michael Benklifa, best-selling author of Profiting with Iron Condor Options

    Want to win in options? You must think like a professional option trader. Step #1: Get rid of the habits you learned in stock trading: they’re killing you! Step #2: Understand the real dynamics of options markets: they are radically, fundamentally different.

     

    Example: When stock traders look at price, they see information. Option traders see probability, time, and volatility. Example: Stock trading is about having an information advantage. Option trading can be about exploiting a lack of information. Example: Stocks either go up or they don’t. Option trades can be structured for a 90% probability of success.

     

    With dynamics like these, option trading is like nothing else. Through practical, simple examples, Michael Benklifa will help you understand what’s really going on here…so you can consistently build trades that earn profits and control risk!

    Read More

    Customers Who Bought This Item Also Bought

    Recently Viewed 

    Sign In Create an Account
    Search Engine Error - Endeca File Not Found