Options 101:
From Theory to Application
(Second Edition)
An Amazon.com #1 best-seller, the newly revised second edition of Options 101: From Theory to Application is available as an e-book! You can now read this 365-page remarkable book directly from your computer or other modern viewer.
Due to a growing number of requests from international students, this book can now be downloaded as a PDF (Portable Document File) to avoid extreme shipping costs and lengthy delays. One student reported a $40 shipping charge to Africa and a 25-day wait. We’re serious about teaching the art & science of options trading and PDFs offer a more efficient way to deliver the information worldwide.
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Advantages of PDF books:
Even if you’re not an international student, PDF books offer tremendous advantages:
- Immediate access – start reading today
- No shipping costs
- Compatible across platforms – Windows, Mac, Linux, mobile phones and more!
- Enlarge fonts at the click of a mouse
- Color charts and graphics that aid in learning
- Search keywords – no more fumbling through indexes
- Bookmark pages – quickly access where you left off or mark favorite sections
- Portable – great for flights, work, or anywhere your computer goes
- Printable – if you desire, print pages to carry with you
- Software to view the book is FREE
The PDF (Portable Document File) is a system-wide universal format that can be viewed on any computer with Adobe Acrobat Reader. Nearly all computers are standard-equipped with a PDF reader but you can download it FREE from Adobe at this link:
What is the Book About?
Options 101: From Theory to Application teaches everything you need to know – from A to Z – to get started in options.
The book starts at the very beginning and assumes you know nothing about options. It slowly defines what an option is and shapes your understanding of how it is different from stock. The introductory chapter makes sure you also understand the necessary key terms including, bid and ask, open interest, long and short, exercise and assign, contract size, American and European styles, moneyness, parity, and more.
You’re then be led through a journey of topics including option price behavior, pricing principles, profit and loss diagrams, risk and reward misconceptions, option market mechanics, order placement, volatility, hedging, and other key concepts you must understand in order to master options trading.
There’s even an entire chapter devoted to synthetic options – a key to understanding options and hedging. You’ll even learn how Gordon Gekko, the crafty trading guru from the hit movie Wall Street could have improved his stealthy trades by understanding put-call parity.
The book also introduces you to three introductory, but powerful, strategies. You’ll learn the covered call, how to use long calls and puts as long and short stock substitutes, and bull and bear vertical spreads. You'll even learn some basic hedging strategies such as rolling up and down. You'll even get end-of-chapter questions with full answers!
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Options trading and investing can be very rewarding but you must understand all of the fundamentals before venturing out on your own. Options 101: From Theory to Application is a perfect place to start.
How Do I Order?
You can download a copy in the bookstore. Just click on the bookstore tab!
* A Note to Alpha Trader Students *
If you are enrolled in the Alpha Trader Certificate Course, you’ll receive a similar copy of this book as part of your supplemental reading.