Options Trading 101: From Theory to Application (Paperback)

by Bill Johnson (Author) "Options are simply legally binding agreements - contracts - between two people to buy and sell stock at a fixed price over a given time..." (more)
Key Phrases: long call holder, synthetic long stock position, long stock holder, Black-Scholes Model, Dell Computer, Google Jan (more...)

Editorial Reviews

Product Description
Discover Powerful and Profitable Option Trading Strategies That Can Limit Your Risk While Multiplying Your Profits in Today's Markets. Options Trading 101 was written as a complete introductory guide for investors and traders who want to understand the world of options. While it is labeled as an introductory book, it is anything but a general overview. It starts by exploring the most fundamental concepts of options trading and ends with some basic strategies that traders will fully understand and be able to use immediately. In a clear, concise way readers will be led through the most important topics that are necessary to master and advance with options trading. Options Trading 101 makes use of many fun examples including Gordon Gekko's mistake in the hit movie "Wall Street" from not understanding put-call parity.

About the Author
Bill Johnson has taught Heating, Air Conditioning and Refrigeration for 21 years in various technical colleges and factory schools. A graduate of Southern Technical Institute, a branch of Georgia Tech in Atlanta, GA, he has also served as a Service Manager for a major manufacturer for 6 years. Bill owned his own HVAC&R business for about 10 years and has been a member of the Refrigeration Service Engineers Society and the American Society of Heating Refrigerating Air Conditioning Engineers. His authoring credits include 3 major textbooks on the market today, as well as their ancillary materials.

Product Details

• Paperback: 449 pages
• Publisher: Morgan James Publishing (October 1, 2007)
• Language: English
• ISBN-10: 1600372376
• ISBN-13: 978-1600372377
• Product Dimensions: 9.9 x 7 x 1.1 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars See all reviews (16 customer reviews)
• Amazon.com Sales Rank: #201,161 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

26 of 27 people found the following review helpful:

5.0 out of 5 stars An In-Depth Options Trading Education for $20, December 10, 2007

By	John Roney (FAIRFAX, VA United States) - See all my reviews (REAL NAME)

Length:: 1:34 Mins

This is a quick review of the excellent stock options trading book written by Bill Johnson called Options Trading 101. -john


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.

12 of 14 people found the following review helpful:

5.0 out of 5 stars A Definite Addition To The 'Ol Trading Library, December 9, 2007

By	Christopher Smith (Santa Clarita, CA United States) - See all my reviews (REAL NAME)

You know, stock options are not the easiest thing to understand. Bill Johnson has been teaching options for a number of years and has developed a very soothing approach that invariably places his audience at ease.

With his first book, Bill has carried this approach forward and has come up with a text that will quickly become a "must have" title for anyone who is at all serious about trading options. I have read many, many books on this subject and most of them get stuffed into boxes or given away. This one is a keeper, however!

As the "101" title implies, Bill picks up with the basics. You will learn what an option contract is and how it functions. He tackles the tough ground, addressing options pricing but does so in a manner that does not demand an advanced degree in mathematics from his readers.

Once you have the basics down, it is important to understand what risks and benefits you obtain by buying or selling particular option contracts. Bill Johnson has addressed precisely how to go about doing this using profit and loss diagrams. An exploration of how the options markets work, then follows.

This is where your introductory "101-type" experience ends. Bill seamlessly transitions from the basics into a discussion about synthetic positions and the interrelationship of call and put options. Volatility, its effects, and how to use it, are covered in a chapter dedicated to the subject. A discussion of how to apply options for trading purposes, including a dialog on basic option spreading techniques, begin pulling the prior material together. The concepts of leverage and position hedging are also addressed.

Obviously, Bill Johnson has gone beyond an introductory discussion of options and tackles some of the more difficult, and important, material that is simply necessary for options trading success. When you consider the small financial investment involved, they only question I would pose is why would you not want to pick up a copy of this book?

Christopher Smith
TheOptionClub.com

5 of 5 people found the following review helpful:

5.0 out of 5 stars Great introduction to Options trading!, December 14, 2007

By	S. Gary Cotterill "Gary C" (Seattle Area, WA USA) - See all my reviews (REAL NAME)

Easy understandable and clear introduction to Options Trading. From basic concepts to more complex spreads. Filled with examples and tests to review your understanding. If you are trading stocks you need to understand options and this is a great 101 book.