Visual Guide to Options Bloomberg Financial Series

My goal for this guide is to allow you to open to just about any point in the book and fi nd a useful tip, method, or actionable idea that you can apply immediately, without having to go back and read too far.

Most of us believe we are free thinkers, but it’s important to realize that on some level, information flows into our minds through fi lters or biased channels.

The specific publications you read or websites you browse dictate your information sources. As you structure your investment thesis and strategy, don’t ever be afraid to break your normal pattern and look for alternative methods of gathering information, statistics, and strategy.

Depending on your particular exposure or experience with trading options, you are going to have preconceived notions about how useful they are to you.

Even if you have been an extremely successful options trader, keep your mind open to looking at the option markets and their risk in a diff erent way. The ideas, techniques, and processes in this book are not the only solution, but they have worked for me for many years and may make a good addition to your existing repertoire. No one has “the secret sauce”; you simply need a viable action plan and a sound risk and psychological management system.

Although there is no perfect way to trade options, there are many wrong ways to do it. I learned some valuable (and costly) lessons along the way; I hope to show you where I screwed it up so that you can avoid the major pitfalls of bad options trading.

This book expands on the focus of my first book, Your Options Handbook, and details more of the nuanced techniques and analysis that professionals use to get an edge on the market. Th e goal of this text is to help you to truly understand risk, order flow, and volume as well as execution and strategy.

Even with Bloomberg being one of the best information sources out there, don’t be discouraged if you don’t have access to a terminal. The bulk of strategies,  tools, and techniques contained in these pages can be utilized and applied in many forms.

Also realize that this book couldn’t possibly contain every single thing you need to know about options, so if you have a question or if you don’t feel completely comfortable with a concept or strategy, be sure to research it further and ask questions!