HOW TO PRICE AND TRADE OPTIONS -- Contents -- Introduction -- CHAPTER 1 Why Trade Options? -- Strategic without Being Directional -- A Word about Leverage -- Options Are a Decaying Asset -- Insurer or Insured? -- Probability of Making Money -- Market Efficiency -- Tired, Worn-Out Metaphors -- CHAPTER 2 What to Look for in a Broker -- Brokerages versus Banks -- Depth of a Broker's Pockets -- Trading Risk Management -- Learning from Recent Events -- Account Types -- Cash Accounts -- Reg‐T Margin Accounts -- Portfolio Margin Accounts -- Commissions -- Interest Rates -- Stock Borrow and Loan -- Shorting Stock -- Easy to Borrow -- Hard to Borrow -- Impossible to Borrow -- Buy‐Ins -- Short Interest -- Where Your Broker Matters -- Trading Platforms -- Easy to Use -- Historical Data -- Mobile Platform -- Trade Probabilities -- Conclusion -- CHAPTER 3 Building the Foundation -- Option Pricing Models -- Option Pricing Model Inputs -- Historical Data as Input into the Implied Volatility of an Underlying -- Implied Volatility as a Predictor of Stock Movement and Probabilities -- The Distribution Curve -- Breakout Stocks -- Actual versus Historical Distribution Curves -- CHAPTER 4 Trade Probabilities: What to Look For -- The Results -- How to Calculate Option Probabilities -- CHAPTER 5 Choosing Your Trades -- Choosing Your Underlying -- Making an Assumption -- CHAPTER 6 Choosing a Strategy -- Defined Risk Trades -- Credit Spreads -- Debit Spreads -- Butterfly -- Iron Condor -- Calendar Spreads -- Undefined Risk Trades -- The Straddle -- The Strangle -- Short Naked Puts -- Ratio Spreads and Back Spreads -- What Time to Expiration Should My Trades Have? -- Trading Earnings Announcements -- CHAPTER 7 Exiting Trades -- The Variables -- The Kelly Criterion -- Morning Routine -- To Log Your Trades or Not to Log Your Trades -- CHAPTER 8 Executing Your Trades.

Order Types -- CHAPTER 9 Portfolio Management -- Two Types of Risk -- The Goal: Diversification-Minimizing Unique Risk -- The Methods: Correlation and Number of Positions -- Identifying and Mitigating Systematic Risk -- Trade Sizing -- Early Exercise -- Conclusion -- About the Website -- About the Author -- Index -- EULA.