Details

<p>Foreword vii</p> <p>Preface: Trading Language and Products ix</p> <p>1 Option Basics 1</p> <p>2 Option Specifications 9</p> <p>3 Exercise and Assignment 13</p> <p>4 Option Uses 19</p> <p>5 Option Price and Value 31</p> <p>6 “Moneyness” 39</p> <p>7 Pricing Options 43</p> <p>8 Skew 61</p> <p>9 Option Pricing Revisited: the “Greeks” 71</p> <p>10 Basic Option Strategy 95</p> <p>11 Option Spreads 105</p> <p>12 The Collar (Fence) 107</p> <p>13 Long Call Spreads (Bull Call Spreads) 119</p> <p>14 Long Put Spreads (Bear Put Spreads) 127</p> <p>15 Short Call Spreads (Bear Call Spreads) 139</p> <p>16 Short Put Spreads (Bull Put Spreads) 147</p> <p>17 Selling Naked Puts versus Selling Put Spreads 151</p> <p>18 Long Verticals versus Short Verticals 157</p> <p>19 Long Straddles 161</p> <p>20 Long Strangles 167</p> <p>21 Short Straddles 173</p> <p>22 The Iron Butterfly 179</p> <p>23 Short Strangles 185</p> <p>24 The Iron Condor 187</p> <p>25 Calendar Spreads 193</p> <p>26 Long Call Calendars 195</p> <p>27 Short Call Calendar Spreads 201</p> <p>28 Long Put Calendar Spreads 205</p> <p>29 Short Put Calendar Spreads 209</p> <p>30 Diagonal Spreads 213</p> <p>31 Yield Enhancement 219</p> <p>32 Gamma Trading 223</p> <p>33 Resources 233</p> <p>34 Summary 235</p> <p>Glossary 237</p> <p>Index 247</p>

<p><b>W.A. Beagles </b>graduated in economics in 1984, before starting his City career with Lloyds Bank as an FX trader and going on to help establish the bank’s presence on the LIFFE trading floor. In 1986, Bill joined AOT, a specialist option trading firm, for whom he traded a range of option products on LIFFE and LTOM in London, the MATIF in Paris, the EOE in Amsterdam and the electronic DTB (fore-runner of Eurex) in Germany. Following in the footsteps of many successful traders before him, Bill “went local” in 1994, making markets in the FTSE 100 Index option on LIFFE. When the open outcry trading floor closed in 2000, Bill had the honour of ringing the closing bell for the final time.</p> <p>Joining up with Simon Hart and Andy Swaine, two long term friends and fellow traders, Bill then set up K2 London, a trading company that combines day-to-day derivatives trading with fund management, education and consultancy. Since 2000, Bill has provided specialised education and consulting services to a wide range of institutions including LIFFE and the LSE in London and to a range of government agencies and major companies across the globe. <p>Bill’s combination of current market knowledge and educational experience allows him to present the complex subject of options in a clear and intuitive fashion.

<p>Are you looking to reduce your costs, enhance your returns and manage your price risk with certainty and precision? Look no further,<i> Equity and Index Options Explained </i>is the book for you!</p> <p>Written by experienced trader and consultant Bill Beagles, this book is a practical guide to trading equity options for everyman and everywoman whether professional investor or part-time “punter”. <p><b>NYSE Liffe</b> <p>NYSE Liffe is the brand name for the global derivatives business of NYSE Euronext – the world’s largest and most diverse exchange group. NYSE Euronext operates futures and options markets in both the US and Europe. <p><b>European markets</b> <p>In Europe, NYSE Liffe runs futures and options markets in Amsterdam, Brussels, Lisbon, London and Paris where every day approximately two trillion euros worth of derivatives business is traded by customers from around the world. NYSE Liffe offers a broad choice of derivatives products including short-term interest rates, single stocks, indices, swaps, government bonds, commodities and currencies – all available to trade via state-of-the-art electronic trading platform.

GB