Option Spread Strategies: Trading Up, Down, and Sideways Markets

by Anthony J. Saliba, Joseph C. Corona (Editor), Karen E. Johnson (Editor)

Overview

Spread trading—trading complex, multi-leg structures--is the new frontier for the individual options trader. This book covers spread strategies, both of the limited-risk and unlimited-risk varieties, and how and when to use them.

All eight of the multi-leg strategies are here: the covered-write, verticals, collars and reverse-collars, straddles and strangles, butterflies, calendar spreads, ratio spreads, and backspreads. Vocabulary, exercises and quizzes are included throughout the book to reinforce lessons.

Saliba, Corona, and Johnson are the authors of Option Strategies for Directionless Markets.

Product Details

ISBN-13:	9780470885246
Publisher:	Wiley
Publication date:	05/20/2010
Series:	Bloomberg Financial , #63
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	288
Sales rank:	854,429
File size:	5 MB

About the Author

Anthony J. Saliba has been a pioneer and active participant in the derivatives market for more than twenty-five years. He is a member of several financial exchanges and has served on the Board of Directors of the Chicago Board Options Exchange. His firm, the International Trading Institute (ITI), is an acclaimed training organization, reaching thousands of traders worldwide. Saliba was profiled in the best-selling book Market Wizards.

Joseph C. Corona is an adjunct instructor at ITI and is a frequent speaker at industry conferences. He has been actively involved in trading options for more than twenty-five years.

Karen E. Johnson is the former president of ITI and currently serves on its board of directors.

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Table of Contents

Acknowledgments ix

Introduction xi

1 The Covered-Write 2

2 Verticals 28

3 Collars and Reverse-Collars 64

4 Straddles and Strangles 94

5 Butterflies and Condors 126

6 Calendar Spreads 156

7 Ratio Spreads 190

8 Backspreads 222

Appendix: Final Exam 249

Index 263

What People are Saying About This

From the Publisher

Hands down the definitive guide on spread trading. Must reading for any professional who wants to learn directly from one of the top leaders in the options industry.”
—Larry Connors, CEO
TradingMarkets.com

“An excellent guide for learning how to trade option spreads. Saliba offers in-depth discussions on how and when to employ these advanced strategies and how to manage the risk of each position.”
—Peter Lipski, trader
Pan Capital

“Option Spread Strategies: Trading Up, Down, and Sideways Markets is an invaluable addition to any market resource collection. The book concisely walks through the dynamics of spread strategies and guides the reader though the return and risk metrics of the trades. . . . This is a must-have book for anyone seriously undertaking options investing.”
— Chip Norton, Managing Director of Research
Fortigent