PART
2

Options Valuation and Trading Strategies

Before options can be used, you must know what they are worth. Option valuation is so complicated, many traders rely on computer models to determine their positions and strategies.

Not all options strategies are difficult, though. Many are simple to assemble once you have an understanding of how they work. Chapter 5 covers the math behind options valuation. Chapter 6 discusses volatility in the options market and why it matters to anyone in the financial markets. Chapter 7 is an introduction to the basics of trading options, Chapter 8 is an overview of basic strategies using calls, and Chapter 9 is an overview of puts. Puts and calls are combined in the strategies reviewed in Chapter 10.

This information helps you use options to accomplish your goals and to better understand what is happening in the financial markets.