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The Book

Trade Options with an Edge

Would you like to have success in trading options much like the success of a casino that consistently grinds out profits each day? Casinos are successful because they have a definite probability edge on every gambling opportunity that they offer. They rely on the law of large numbers to guarantee that their probability edge will produce profits. When trading options, you can also do this if you have an edge. This book will show you how to get an edge in your options trading. Then, like the casinos, your edge will translate into small but consistent gains. The book will show you how to best exploit your edge, and it will guide you in the selection of the equity that you trade, selection of the strategy, selection of the strikes and expiration cycle, sizing and placing the trade, monitoring progress, and managing the trade.

The book covers basic information about options including all of the common strategies, the option pricing model, and the greeks. It then discusses six sources of edge for sellers of option premium. The trading philosophy has been heavily influenced by tastytrade, an internet site that streams live video focused on options trading each weekday from 8:00 AM to 4:00 PM. Tastytrade’s approach shows how to select option positions that take advantage of the combined edge. Each decision can be totally mechanical based on the values of one or more metrics. And the software provided with this book computes all of the metrics that are necessary. You need only learn what to look out for, follow the mechanics, and reap consistent profits in any kind of market.