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Equity and Index Options Explained

W. A. Beagles

ISBN: 978-1-119-20608-8 August 2015 272 Pages



In 2007 over 400 million equity option contracts were traded but it is a volatile market, prices are ever changing with supply and demand – the only certainty is that they will change.  With little knowledge or experience, an uninformed decision can quickly drain capital.  This book explains equity options from absolute basics, assuming no prior knowledge of the subject.  It shows traders starting out and already using the exchanges how to enhance their equity portfolio by using the whole range of investment opportunities and tools available.  This will help investors to reduce their costs, enhance returns and manage price risk with certainty and precision.
  • Equity Options Explained is a practical guide to trading equity options, supported by Liffe (part of the NYSE Euronext exchange group).
  • Written by Bill Beagles, a well known, highly experienced trader and trainer, creating a unique combination in this area.  Bill is still highly active in the markets, which brings a practical perspective to his training and the books.



Preface: Trading Language and Products.

1 Option Basics.

2 Option Specifications.

3 Exercise and Assignment.

4 Option Uses.

5 Option Price and Value.

6 “Moneyness”.

7 Pricing Options.

8 Skew.

9 Option Pricing Revisited: the “Greeks”.

10 Basic Option Strategy.

11 Option Spreads.

12 The Collar (Fence).

13 Long Call Spreads (Bull Call Spreads).

14 Long Put Spreads (Bear Put Spreads).

15 Short Call Spreads (Bear Call Spreads).

16 Short Put Spreads (Bull Put Spreads).

17 Selling Naked Puts versus Selling Put Spreads.

18 Long Verticals versus Short Verticals.

19 Long Straddles.

20 Long Strangles.

21 Short Straddles.

22 The Iron Butterfly.

23 Short Strangles.

24 The Iron Condor.

25 Calendar Spreads.

26 Long Call Calendars.

27 Short Call Calendar Spreads.

28 Long Put Calendar Spreads.

29 Short Put Calendar Spreads.

30 Diagonal Spreads.

31 Yield Enhancement.

32 Gamma Trading.

33 Resources.

34 Summary.