Whether you are a seasoned trader looking to keep up with the changing marketplace, or a novice investor eager to stake your claim in the new world of electronic options trading, let The Electronic Trading of Options be your guide to successful, profitable trading.
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Many exchanges are abandoning the traditional open-outcry trading floors for cheaper, faster, and directly accessible computer systems that can match buyers and sellers electronically at any time of the day or night. It's already happened to exchanges in Australia, England, and France, and it's only a matter of time before electronic trading becomes the industry standard for options much like it has with equities.
"With all these exciting, fast-aced developments taking place in the electronic option trading environment, the sophisticated investor who prepares well both in terms of option training and familiarizing himself with state-of-the-art software will certainly have a leg up on the competition in identifying and exploiting trading and ivestment opportunities."
So says veteran trader and well-known industry insider Howard Abell in The Electronic Trading of Options, the first book to reveal everything the novice or experienced tader needs to know to not only trade options online, but to do so profitable and successfully.
The Electronic Tradig of Options is a practical options trading manual for hedgers and speculators that provides solid, basic theory buy never loses sight of the investor's pimary concern: bottom-line performance. It provides an invaluable resource for options traders and investor about market philosophy and trading strategy given the new technological realities of the electronic financial arena. It also offers specific tachnical and tactical methods bolstered by consideration of money and risk management, designed to significantly strengthen a trader's overall market performance.
In The Electronic Trading of Options Abell discusses:
- The basic options strategies from both a traditional and an electronic perspective.
- The electronic trading platforms already in use and new ones soon to be launched, including: Eurex, Globex, Cantor Exchange, Liffe Connect, ISE, and Chicago Board Options Exchange.
- Current state-of-the-art trading systems available to options traders now and in the near future-the look of their screens and windows, and how to operate them-including: Theodore, First Traders Analytic Solutions, and TradeStar.
- Becoming a successful elctronic options trader by indentifying and describing specific technical, mechanical, and tactical skills.
- The new options trading necessity: Sophisticated options trading, training, and fimaliarity with front-end riskmanagement and order execution systems.
- How seasoned trading pros view the new electronic trading arena, and their recommendations for trading options profitably, including: Tony Saliba, Joe Corna, Chris Hausman.
- How traders and investors can use technical analysis to identify options trading opportunities.
- The psychological and investment tools required to trade options successfully.
About the Author
Howard Abell is the chief operating officer of Innergame Partners, a division of Rand Financial Services, Inc., concentrating on brokerage and execution services for institutional and professional traders. He is the coauthor, with Bob Koppel, of The Innergame of Trading, The Outergame of Trading, and The Market Savvy Investor. He is the author of The Day Trader's Advantage, Spread Trading, Risk Reward and Digital Day Trading.
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Table of Contents:
PART ONE: The New Reality of Options Trading
1. The Changing Financial Landscape 3
2. Options Essentials 15
3. Trading Options Electronically 27
PART TWO: Trading on a Level Playing Field
4. Competing with Market Professionals 69
5. Interview with Chris Hausman 79
6. Interview with Tony Saliba 95
7. Interview with Joe Corona 111
PART THREE: Market Analysis and Options Trading
8. Technical Considerations: Strategies for
Profitable Trading 123
9. Classical Analysis and Options 153
PART FOUR: Principles for Profitable Options Trading
10. The Psychology of Successful Options Trading 171
Appendix: TradeStar II Options Simulator User Manual 187
For Further Reading 213
About the Author 225
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