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The Four Biggest Mistakes in Option Trading, 2nd Edition

The Four Biggest Mistakes in Option Trading, 2nd Edition

Jay Kaeppel

ISBN: 978-1-592-80255-5

Nov 2006

92 pages

In Stock



With over 50,000 copies in print for the first edition, Kaeppel's insight has undoubtedly made its mark in the options world. Now, he strikes again with an updated and more comprehensive look at those pesky mistakes that traders continue to make in trading options. In easy-to-understand terms, he systematically breaks down each problem and offers concrete and practical solutions to overcome it in the future.

There are big profits to be made in options trading. By avoiding the four most common and most costly mistakes the majority of traders make, you'll be set to win big. System and software developer Jay Kaeppel helps you thoroughly understand each mistake before showing you how to avoid them in future trades.

In this new, color edition, you'll find:

  • More in-depth analysis of the four biggest mistakes including volatility calculations, risk/reward relationships, calendar spreads, etc.
  • More real world examples with varying scenarios updated to reflect today's market
  • More graphs and tables to better illustrate Kaeppel's concepts
  • More detailed discussion on the nature of options trading and how to create a consistently winning strategy

Concise and to-the-point, here's an action plan you can read and put into place immediately to become a more profitable trader.

Introduction vii

Mistake #1

Relying Solely on Market Timing to Trade Options 1

Why Traders Make Mistake #1 1

Why Mistake #1 Causes Losses In The Long Run 12

How To Avoid Mistake #1 22

Mistake #2

Buying Only Out-of-The-Money Options 27

Why Traders Make Mistake #2 29

Why Mistake #2 Causes Losses In The Long Run 34

How To Avoid Mistake #2 42

Mistake #3

Using Strategies That Are Too Complex 47

Why Traders Make Mistake #3 48

Why Mistake #3 Causes Losses In The Long Run 55

How To Avoid Mistake #3 64

Mistake #4

Casting Too Wide of a Net 67

Why Traders Make Mistake #4 67

Why Mistake #4 Causes Losses in the Long Run 67

How to Avoid Mistake #4 77

Summary 81

About the Author and Optionetics 83

Company Information 85

Trading Source Guide

Tools For Success in Options Trading 87