Get a handle on option spreads to hike profit and squash loss

The Complete Book of Option Spreads and Combinations is the definitive educational resource and reference guide for using option spreads and other common sense option strategies. This useful guide shows readers how to select the right strategy for their market outlook and risk/reward comfort level by describing the inner workings of each strategy and how they are affected by underlying market movements, implied volatility, and time decay. Even more importantly, readers will understand where each strategy performs well, and the market conditions where each should be avoided. Once the proper strategy is selected, readers will learn how to identify the best options to use based on “moneyness” and time to expiration. The companion website features tools including an option pricing tool and implied volatility calculator to help all traders implement these concepts effectively.

There are many different types of spreads, and while less risky than other option strategies in general, they are more complex, with more variables to monitor. This guide serves as a handbook for the trader wanting to exploit options to the greatest possible benefit.

  • Generate monthly income by selling covered strangles
  • Use call spreads to recover from a losing stock position
  • Protect an existing stock position using put diagonals
  • Discover the best strategies for directional market plays

Option spreads are a great tool for traders who would rather be an option seller but who need to limit their risk. The Complete Book of Option Spreads and Combinations identifies those strategies that benefit from option erosion but that limit risk.

If managed properly, spreads can provide both novice and experienced investors with the potential for a large return while limiting risk. Electronic trading platforms and reduced brokerage commissions have increased option spread trading, which should occupy a spot in every savvy investor’s toolkit. Comprehensive and authoritative, The Complete Book of Option Spreads and Combinations provides a valuable manual and lasting reference.

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July 11th, 2017

Posted In: Income Strategies

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2 Comments

  • Cody R Hughes says:

    Option Spreads and Combinations in the Real World I do not know Scott Nations, but I have seen him on TV. I am a professional stock, options and futures trader. I think this book is a great follow up to his first book. The thing that separates this options book from others is that it uses real world examples and links the theory of options with practical advice. He doesn’t merely show you a spread and lay out the risk reward chart but rather goes a step further to explain situations and outlooks in which the particular spread or…

  • H4884 says:

    Terrific book 1. Ignore the “review” by Matthew Stromberg. It shows a complete lack of understanding of the subject.2. This is an excellent options book for intermediate options traders. The author takes each option strategy, explains how it works, and gives specific examples of the strategy. The explanations are much more complete than most options books.The book builds from simple calls and puts to two-option spreads to multi-option spreads. Realizing, for example, that a butterfly is…

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