Think Like an Option Trader: How to Profit by Moving from Stocks to Options

Index

A

accepting responsibility for your trades, 157-158

actual price, 49-50

analyzing situations, 105-106

The Anthropic Bias, 17

at-the-money calls, 98

implied volatility, 40

Augen, Jeff, 78

augmented returns, 88-94

butterflies, 90-94

ratio trades, 88-90

B

behavioral norms of expiration day, 119-123

collapsing time decay, 122-123

intraday moves, 120-121

belief as strategy, 35

bell curve, calculating one-standard deviation moves, 40

bending the P&L curve, 95

beta, measuring risk, 161-163

betting

Martingale betting system, 165

odds, 21

as options analogy, 18-21

risks, compensation for, 19

bias in direction, overcoming, 71

Bollinger Bands, measuring volatility, 59-61

broken wing butterflies, 92

bucket analogy, effects of volatility, 55-59

Buffet, ...