List of Figures.
1 Option History, Definitions, and Terms.
The Cost of an Option.
The History of Listed Options.
Option Trading Procedures.
Exercise and Assignment.
Futures and Futures Options.
Influences on an Option’s Price.
2 An Overview of Option Strategies.
Outright Option Buying.
Using Long Options to Protect Stock.
Buying Both a Put and a Call.
3 The Versatile Option.
Options as a Direct Substitute for the Underlying.
Options as a Proxy for the Underlying.
The Effect of Stock Index Futures on the Stock Market.
The Effect of Index Futures and Index Option Expiration on the Stock Market.
Options as an Insurance Policy.
Hedging with Over-the-Counter Options.
Using Volatility Futures as Portfolio Insurance.
4 The Predictive Power of Options.
Using Stock Option Volume as an Indicator.
Using Option Prices as an Indicator.
Implied Volatility Can Predict a Change of Trend.
The Put–Call Ratio.
Futures Options Volume.
On Moving Averages.
5 Trading Systems and Strategies.
Incorporating Futures Fair Value into Your Trading.
The TICKI Day -Trading System.
A Short-Term Trading System.
Other Seasonal Tendencies.
6 Trading Volatility and Other Theoretical Approaches.
Delta Neutral Trading.
Comparing Historical and Implied Volatility.
Trading Implied Volatility.
Trading the Volatility Skew.
The Aggressive Calendar Spread.
Using Probability and Statistics in Volatility Trading.
7 Other Important Considerations.
Trading Methodology and Philosophy.
Option Trading Philosophy.
Appendix A: Listed Index and Sector Options.
Appendix B: Futures Options Terms and Expirations.
Appendix C: Option Models.