If you have experience in option trading, or a strong understanding of the options markets, but want to better understand how to trade given certain market conditions, this is the book for you. Mark Sebastian's new edition will teach trade evaluation, using Greeks, trading various spreads under different market conditions, portfolio-building, and risk management. Sebastian's approach will help traders understand how to find edge, what kind of trade under what conditions will capture edge, and how to create and successfully hedge. The book demonstrates how to structure a portfolio of trades that makes more money with less risk.

Table of Contents:

Foreword by Bill Luby

Part I: Professional Lessons Every Trader Needs to Know

Chapter 1: Trading in Options

Chapter 2: Risk Management

Chapter 3: Market Makers, Risk, and the Individual Trader

Chapter 4: Volatility

Chapter 5: What Is Edge?

Chapter 6: Locking in Edge

Part II: Using Spreads

Chapter 7: A Quick Review of Spreads

Chapter 8: Adding Edge to Spreads

Chapter 9: Butterflies and Condors

Chapter 10: The Front Spread

Chapter 11: Calendar Spreads

Chapter 12: Trading VIX

Chapter 13: Trading VIX ETP's and ETF's

Part III: Global Risk

Chapter 14: How a Market Maker Trades

Chapter 15: Portfolio Greeks

Chapter 16: Investing with Options/Stock Replacement

Chapter 17: Hedging and Crisis Alpha with Options

Part IV: Appendices