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| List of Figures | |
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| Option History, Definitions, and Terms | |
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| Underlying Instruments | |
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| Option Terms | |
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| The Cost of an Option | |
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| The History of Listed Options | |
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| The Over-the-Counter Market | |
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| The CBOE Beginning | |
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| Index Options | |
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| Exchange-Traded Funds | |
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| Futures Options | |
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| Today's Over-the-Counter Market | |
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| Option Trading Procedures | |
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| Electronic Trading | |
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| Exercise and Assignment | |
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| Mechanics of Exercise and Assignment | |
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| Futures and Futures Options | |
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| First Notice Day | |
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| Single Stock Futures | |
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| Volatility Indices and Futures | |
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| Futures Options Terms | |
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| Influences on an Option's Price | |
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| Volatility | |
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| How the Factors Affect the Option Price | |
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| Delta | |
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| What Affects Delta? | |
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| Technical Analysis | |
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| An Overview of Option Strategies | |
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| Profit Graphs | |
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| Outright Option Buying | |
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| Using Long Options to Protect Stock | |
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| Buying Puts as an Insurance Policy for Long Stock | |
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| Buying Calls to Protect Short Stock | |
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| Buying Both a Put and a Call | |
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| Selling Options | |
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| Covered Call Writing | |
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| Naked Option Writing | |
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| Naked Put Writing | |
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| Naked Call Writing | |
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| Straddle and Combination Selling | |
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| Spreads | |
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| Vertical Spreads | |
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| Calendar Spreads | |
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| Diagonal Spreads | |
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| When Spreads Are Attractive | |
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| Ratio Strategies | |
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| Ratio Writing | |
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| Ratio Spreads | |
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| More Complex Constructions | |
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| Using an Option Model | |
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| Summary | |
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| The Versatile Option | |
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| Options as a Direct Substitute for the Underlying | |
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| Equivalent Short Stock | |
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| Single Stock Futures | |
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| Defending against a Limit Move in Futures Contracts | |
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| Options as a Proxy for the Underlying | |
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| Option Buying as a Short-Term Stock Substitute | |
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| Option Buying as a Long-Term Stock Substitute | |
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| Using LEAPS Puts instead of Calls | |
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| The Effect of Stock Index Futures on the Stock Market | |
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| Index Arbitrage | |
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| Portfolio Insurance | |
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| Program Trading | |
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| The Effect of Index Futures and Index Option Expiration on the Stock Market | |
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| Games People Play | |
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| Open Interest Implications | |
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| A Hedged Strategy | |
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| Speculation Early in Expiration Week | |
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| Trading with the Arbs | |
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| The Postexpiration Effect of Futures on the Stock Market: A Trading System | |
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| Expiration's Effect on Individual Stocks | |
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| Options as an Insurance Policy | |
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| The Collar | |
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| Using LEAPS as Collars | |
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| Hedging with Over-the-Counter Options | |
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| Using Volatility Futures as Portfolio Insurance | |
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| The Contract Details | |
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| Strategies for Protecting a Portfolio of Stocks with VX Futures | |
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| What Can Go Wrong? | |
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| Options on VX Futures | |
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| Summary | |
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| The Predictive Power of Options | |
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| Using Stock Option Volume as an Indicator | |
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| How Much Is Too Much? | |
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| The Analysis | |
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| Analysis in Real Time | |
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| Examples | |
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| Profitability | |
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| Further Considerations | |
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| Using Stops | |
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| When Option Volume Is Not a Good Predictor | |
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| Using Option Prices as an Indicator | |
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| Expensive Stock Options May Predict Corporate News | |
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| Analyzing Implied Volatility for Speculative Trades | |
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| Implied Volatility Can Predict Trading Gaps | |
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| Some Strategies for Trading the Volatility Gap | |
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| Implied Volatility Can Predict a Change of Trend | |
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| Covered Call Writing When Volatility Increases | |
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| Implied Volatility of Index Options | |
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| A Case Study: The 1994 and 1995 Markets | |
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| Another Case Study: 1997-1999 | |
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| The Seasonality of Volatility | |
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| Trading Volatility Directly | |
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| Further Observations on Index Volatility | |
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| The Put-Call Ratio | |
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| The Data | |
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| Interpreting the Ratios | |
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| Sector Index Options Put-Call Ratios | |
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| Using Put-Call Ratios to Trade Individual Stocks | |
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| Futures Options Put-Call Ratios | |
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| Futures Options Volume | |
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| Put-Call Ratio Trading Summary | |
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| On Moving Averages | |
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| Summary | |
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| Trading Systems and Strategies | |
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| Incorporating Futures Fair Value into Your Trading | |
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| Day-Trading Vehicles | |
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| The TICKI Day-Trading System | |
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| The Intraday Market-Reversal Corollary | |
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| A Short-Term Trading System | |
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| Monitoring the Oscillator Intraday | |
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| Problems with the Advance-Decline Line | |
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| Intermarket Spreads | |
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| European Options | |
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| The HUG/HOG Spread | |
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| The January Effect | |
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| Gold Stocks versus the Price of Gold | |
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| Oil Stocks versus the Price of Oil | |
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| Utility Stocks and 30-Year T-Bonds | |
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| Similar-Sector Index versus Futures Intermarket Spreads | |
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| Pairs Trading | |
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| Other Seasonal Tendencies | |
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| August: The Dull Month--Or Is It? | |
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| September-October: A Very Tradeable Time Period for the Stock Market | |
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| Late-October Buy Point | |
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| Late-January Buy Point | |
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| Summary | |
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| Trading Volatility and Other Theoretical Approaches | |
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| Volatility | |
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| Delta Neutral Trading | |
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| Keeping a Position Neutral | |
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| Other Forms of Neutrality | |
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| Predicting Volatility | |
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| Comparing Historical and Implied Volatility | |
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| Trading Implied Volatility | |
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| Selling Volatility | |
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| Buying Volatility | |
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| The "Greeks" | |
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| The Model | |
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| Delta | |
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| Vega | |
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| Theta | |
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| Rho | |
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| Gamma, Revisited | |
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| Gamma and Delta Neutral | |
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| Even More Advanced Constructions | |
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| Summary | |
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| Trading the Volatility Skew | |
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| Price Distributions | |
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| Trading the Positive Skew | |
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| Trading the Negative Skew | |
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| Put Ratio Spread | |
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| A Volatility Skew Biases a Position | |
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| Finding Where Volatility Skewing Exists | |
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| The Aggressive Calendar Spread | |
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| Using Probability and Statistics in Volatility Trading | |
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| Expected Return | |
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| Summary | |
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| Other Important Considerations | |
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| Support Activities | |
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| Order Entry | |
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| Brokers and Brokerage | |
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| Data Vendors | |
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| Software | |
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| Trading Methodology and Philosophy | |
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| Managing Your Money | |
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| Speculative Trading Procedures | |
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| Actual Trading Examples | |
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| Option Trading Philosophy | |
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| The Biggest Mistake | |
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| Summary | |
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| Listed Index and Sector Options | |
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| Futures Options Terms and Expirations | |
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| Option Models | |
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| Index | |