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Trajan's second option journal
- Thread starter Trajan
- Start date
Some of the stuff I do is covered in books but much of it isn't. You will learn some of the mechanics of options, but there won't be a very good explanation of how to use synthetics to gain extra edge. They are mostly written for the point of view of the customer which is expected to hit bids and take offers. A couple that actually get fairly in depth are Natenbergs Volatility & Option Pricing and Cottle's Options: Perceptio/Deception. The latter is the most in depth book on actual trading of options. Natenbergs offers an intermediate look at volatility and pricing, hence the title. There is also, of course, McMillan's "Options as a strategic investment" which is the standerd beginner book. Most of this stuff I learned on the floor.Quote from wadef:
I enjoy your journal posts. Please keep them coming.
I don't really understand what you're doing, though. Could you recommend a couple of books that would help? Thanks.
An explantion of one of the things I did above is the sell of ten lot of fifteen puts and selling the 12 call. What I did in this case is effectively sell the 15 call for .70. Right now, the 12 calls are more or less stock. By selling stock on a 1 to 1 basis against the put, I sybthetically sold the 15 call for .70. The market at that time for the 15 call was .60 @ .65. I sold the call for five cents more than what it would cost me to buy it and ten cents more than if I sold it at the bid..