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Options Trading 101: From Theory to Application Paperback – October 1, 2007
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About the Author
Bill Johnson brings a unique blend of real-world trading experience combined with academic theory. He is the founder of Options A to Z.com; a website dedicated to teaching the art & science of options trading to traders around the world.
His trading career began in 1995 after being hired by the discount giant, Charles Schwab, where he worked for an active trader options team in addition to specialized technical and fundamental analysis teams.
He gained invaluable experience while working rotations for Schwab's trade support desk, risk assessment, and initial public offerings (IPOs). Bill was also active in training and taught weeklong courses to hundreds of Schwab’s advanced brokers in Option Pricing and Hedging as well as Economics of Financial Markets and wrote the corresponding compliance-approved course manuals.
In 2000, he was hired by 21st Century Investor as the Chief Options Strategist and wrote eight books ranging from options, futures, forex, volatility, and the Federal Reserve. Three were selected as supplemental texts at universities. He created two online educational courses featuring options and single-stock futures where more than 300,000 students have enrolled worldwide. Bill was also a host for the 21st Century Alert Radio Show on WNN 1470AM.
In 2007, he became the Director of Education for Options University where he wrote Options 101: From Theory to Application and was a keynote speaker for many financial seminars, including a month-long tour in Australia, Singapore, Jakarta, and Kuala Lumpur.
He has articles published in Active Trader, Buy-Sell-Hold, SFO (Stocks, Futures, & Option), Investor’s Observer, and Smart Money magazines and has also been quoted in Barron’s. He was also invited to be a speaker for the Option’s Institute Master Sessions at the Chicago Board Options Exchange (CBOE) and the Quantitative and Computational Finance Day (QCF) at Georgia Institute of Technology.
Bill also teaches Financial Risk Management as an adjunct professor for Florida International University (FIU), which is one of the largest research universities in the country. He received a Master's Degree in Economics in 1996 and an M.B.A. in 1999 from the University of Central Florida.
Top Customer Reviews
|Length: 1:34 Mins|
I had a chance to buy Bills book when I met him in person at an options trading seminar before the book was launched publically.
Bill is one of the traders for a company called Options University which teaches stock options trading. Bill's book hit number one on Amazon just after it launched, so a lot of other people must have thought it looked pretty good too.
I guess the simplest thing I can say about Bill's book is that there is a fully in-depth options trading education within the 449 pages of the book, and if you have the discipline to go through the book slowly, taking notes, you can get an education that others have paid hundreds or maybe even thousands of dollars to recieve.
One of my favorite parts of Bill's book are the chapter review quizzes that he gives at the end of each chapter. Like any good teacher who teaches you something and then reviews with you to make sure you got it, Bill does just that with his end of chapter quizzes.
Bill goes from very beginner to rather advanced between the pages of this book and he does it in a pretty simply and easy to understand way, drawing a lot of connections to other real life matters to make understanding the more technical parts of trading a lot easier.
For a $20 book on options trading success, Bill's book is a no-brainer.
So, I'm reading along, and I come across the occasional typos or editorial errors, no big deal, but in some cases the errors are serious. Some of the answers in the chapter-end quizzes are wrong; there are some math calculations that are wrong, and I gave it some thought. I realized this could be a good thing, that these editorial mishaps were asking me to make sure I was reading very carefully and making my own decisions. Of course there is enough information in each chapter to overcome any of the errors. But it felt good to know the material so well that I had the confidence and knowledge to know what the right answers should be.
A book like this, one that will be used for regular reference could also greatly benefit from an index.
For me this book was a turning point in my options trading development, so much so, that it inspired me to write my first Amazon review and give it the highest rating.
This isn't an "options playbook" or list of strategies, though it provides some. More importantly, this is a book that answers a lot of fundamental questions about how options are priced, why there isn't any free money (good coverage of arbitrage and the function of market makers,) volatility, synthetic options, leverage, the meaning and usage of some of the more common metrics and indicators available when looking at options chains, and then covering the mechanics of working with options and how rights/obligations are dealt with and how these processes translate to orders given to your broker.
With this information, you are well-armed to learn pretty much any specific strategy from a playbook, and will have the requisite know-how to pick up and understand all those other strategies with very little effort. The chapter key-points, quizzes and then answers are an excellent way to spot-check your comprehension.
Mostly it's done very well.. HOWEVER, the quizzes/answers were poorly proof-read by quality control. There are several instances of blatantly incorrect answers provided (because the answer wasn't for the question posed) or in one case, the answer section restated the question rather than answering it! There were a few instances where the options chain image didn't match the values being discussed in the text.
The mistakes in the Q&A self-review sometimes end up costing the reader extra time in re-reading the question, answer, and previous chapter's text/graphs.Read more ›
Most Recent Customer Reviews
I have recently gotten invovled in investing and have been dealing with stocks for a while. Eventually I decided to start reading about options. Read morePublished 7 months ago by webb1976
After checking this book out of the library three times, I figured it was time to buy it. I’m glad I did. Read morePublished 11 months ago by Joel Herskowitz
One of the best book on option trading education. Presented in the easiest possible way. The only way to remain confuse about option trading is to refuse to read this book. Read morePublished 15 months ago by Raymond A. BITCHONG
I have been trading options for about 6 months now and have read a few books on it. This is by far the most lucid and comprehensive options trading book for beginner level option... Read morePublished 15 months ago by Tanushree Chowdhury
I have been using Bill's book as a supplement to my text book in an intro to risk management class I teach for the past 6 years. Read morePublished 22 months ago by Helen K. Simon
This book was initially I thought good for the beginning trader. The more I read the more scattered it became. I did not enjoy the analogies. Read morePublished 23 months ago by dolphinfaith63
The book "Options Trading 101: Theory to Application" is without doubt an essential handbook for all new to Options trading - can't do without it! Read morePublished on December 22, 2013 by John S F Kok
It's pretty good for the beginner and middle level option trader.
Very good book and easy to understand. It's useful for practice in option trading.
Very good for begginers everthing explained cleraly and twice. I would like to find a similar book no tchnical analysis. Very worth buying. Read morePublished on August 30, 2013 by Luciano