Chapter 1 Trading in Options
This book explains the business of trading options. It is intended for an options trader, or a trader who needs to know more about options trading in order expand trading skills. To fully appreciate the book, you will need a basic grounding in the field, including mastery of options terminology, trading rules, nomenclature, and preferably some preliminary experience in trading options.
An options trader looks at a trade completely differently from a stock transaction. The value judgment in an options trade is limited to whether the trade can be made and if there is an ‘edge’ to the trade (we say a trade ‘has edge’). That is, that an options trader knows something about the trade that gives them an edge, or at least ...
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