If you know the right strategies, you can profit by trading options in a sideways, or directionless, market. (This is fortunate because directionless markets occur more frequently than bull or bear markets.) This hands-on workbook teaches you the most important trading strategies and how to apply them. You'll find out how to identify, enter, manage, and exit a trade. The special format makes it easy to learn; illustrations, exercises, what-if scenarios, and quizzes have you mastering the material in no time. The butterfly family of option strategies is covered, including: butterflies, iron butterflies, condors, broken-wing butterflies, pterodactyls, and iron pterodactyls. The greeks--delta, gamma, vega, and theta--are also covered. Understanding the greeks is essential to deciding how to apply the strategies. If you are a professional or an active individual trader, you can benefit from this book.
Option Strategies for Directionless Markets
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Editorial Reviews
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To keep up and gain an edge, the trading strategies and how-to approach detailed in Tony Saliba's Option Strategies for Directionless Markets can take you to the next level of options professionalism. --Ken Heath, Publisher, Traders Magazine
With detailed and insightful discussions on strategy application and position management, this book offers a tactical approach--something I have not found in other books. --Goran Ekman, Head of Sales Financial Training, OMX
With detailed and insightful discussions on strategy application and position management, this book offers a tactical approach--something I have not found in other books. --Goran Ekman, Head of Sales Financial Training, OMX
From the Back Cover
Making trades in a directionless market can be a challenge, and directionless markets occur more frequently than bull and bear markets combined. Options pioneer and noted author Anthony J. Saliba provides readers with the tools and tactics to address a sideways market. Saliba focuses on strategies in the butterfly family of options--butterflies, condors, and iron butterflies--showing how to use these sophisticated tools in these markets.This hands-on guide illustrates numerous market scenarios to show you step-by-step how and when to apply these butterfly strategies. You'll find out how to identify, enter, manage, and exit a trade. Exercises and quizzes test your comprehension to help you obtain the knowledge to tackle directionless markets.
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Most Helpful Customer Reviews
63 of 66 people found the following review helpful:
2.0 out of 5 stars
Another mediocre book describing the strategies!,
This review is from: Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors (Bloomberg Financial) (Paperback)
I have read a lot of books on options and most of them have one thing in common - they all just describe the various options strategies but do not provide any information on how to use the strategies effectively to make money. This book is no different.
The book delves into how a butterfly and a condor are structured. If you know that a butterfly is structured by a short straddle and protected by a long strangle further out of money, you can skip pages and pages of explanation on the structure. If you already know how to calculate the profit or loss for various prices of the underlying at expiration, you can again skip many pages. Same is true regarding the option greeks. Also, pages and pages of theory does not add much value if you already know about the construction of a condor, which is nothing but a short strangle protected by a long strangle that is further out of money. What is sorely lacking from the book is any advice on how to practically use these strategies for profitable trading. The author mentions that you will trade these strategies when the market is range bound. The author does not give any practical suggestion on selecting the long strikes or wings of the butterfly other than mentioning in the passing that one may use probabilities, but does not go into details of how the probabilities are derived. If you are a butterfly trader you probably already know about standard deviations and probabilities and the importance of IV in calculating the expected movement. Also, once you are in a trade, how do you manage it when it goes against you? The author does not discuss that in any detail. The chapter on 'Strategy Applications' has a lot of diagrams depicting when to leg into and out of the butterfly/condor depending on the market; whether it has broken out of a range and whether IV is falling or rising etc., This is one chapter that can be of some practical use. All in all, if you are a beginner you might find some interesting reading on the butterfly and condor strategies. But all that and a lot more strategies are covered in depth in McMillan's 'Options as a strategic investment' book.
20 of 24 people found the following review helpful:
2.0 out of 5 stars
Option Strategies for Directionless Markets,
This review is from: Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors (Bloomberg Financial) (Paperback)
I would have liked to see more information on guidelines to determine the best range (width) to buy (sell). Specifics on Condor corrections like when is the best time, how to determine how much correction, and alternatives. I would have liked to see ideas on "winging into condors" or adding one side at a time.
7 of 8 people found the following review helpful:
3.0 out of 5 stars
For beginners,
By
This review is from: Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors (Bloomberg Financial) (Paperback)
After having learned much from Saliba's first book on options, I was disappointed that there wasn't much new here for experienced options traders. Those contemplating these types of directionless strategies should not forget that they will likely experience long strings of small winners puncuated by infrequent huge losses that can wipe them out.
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Inside This Book
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First Sentence:
Options continue to grow in popularity with investors. Read the first page Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
debit spread, iron pterodactyls, long put condor, long call butterfly, long put butterfly, long call condor, long iron butterfly, embedded credit spread, directionless market, guts iron butterfly, individual options trader, bull vertical spread, call pterodactyl, bear vertical spread, condor position, higher strike option, positive time decay, possible price outcomes, iron condor, long condor, long butterfly positions, upside loss, bear call spread, payout diagram, more time until expiration Key Phrases - Capitalized Phrases (CAPs): (learn more)
Corona Derivatives, Call Strike Put, Broken-Wing Butterflies, Popular Mutant Structures, Max Profit, Potential Outcomes, Diagram of the Long, Diagram Source, Max Downside Loss, Max Upside Loss, Max Downside Profit, Exercise Answer Key, Bear Put Spread, Quiz Answer Key, Max Upside Profit, Debit Breakevens, Expiry Figure, Time Source, Long Condor Spread Basics, Strategy Application, Stock Price Figure, Implied Volatility Source, Debit Composition, Long Butterfly Spread Basics, Common Trading Scenarios Browse Sample Pages:
Front Cover | Table of Contents | First Pages | Index | Back Cover | Surprise Me!
Options continue to grow in popularity with investors. Read the first page Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
debit spread, iron pterodactyls, long put condor, long call butterfly, long put butterfly, long call condor, long iron butterfly, embedded credit spread, directionless market, guts iron butterfly, individual options trader, bull vertical spread, call pterodactyl, bear vertical spread, condor position, higher strike option, positive time decay, possible price outcomes, iron condor, long condor, long butterfly positions, upside loss, bear call spread, payout diagram, more time until expiration Key Phrases - Capitalized Phrases (CAPs): (learn more)
Corona Derivatives, Call Strike Put, Broken-Wing Butterflies, Popular Mutant Structures, Max Profit, Potential Outcomes, Diagram of the Long, Diagram Source, Max Downside Loss, Max Upside Loss, Max Downside Profit, Exercise Answer Key, Bear Put Spread, Quiz Answer Key, Max Upside Profit, Debit Breakevens, Expiry Figure, Time Source, Long Condor Spread Basics, Strategy Application, Stock Price Figure, Implied Volatility Source, Debit Composition, Long Butterfly Spread Basics, Common Trading Scenarios Browse Sample Pages:
Front Cover | Table of Contents | First Pages | Index | Back Cover | Surprise Me!
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