Equity and Index Options Explained by W. A. Beagles

This week's featured book on options trading:

Equity and Index Options Explained
by W. A. Beagles
Wiley (June 2009)

From the publisher: Written by experienced trader and consultant Bill Beagles, this book is a practical guide to trading equity options for the everyman and everywoman whether you are a professional investor or a part-time “punter”.

You probably already know that options “erode”, that buying options costs money or that selling options can be dangerous, but to maximise your returns and minimise your risk you need to understand the bigger picture. You need to understand the decision making process, the way that option prices are likely to change and how to optimise returns.

This book will guide your way – moving you towards a full understanding of this wide-reaching subject. Starting from absolute basics and moving on to advanced trading techniques; Bill explains both the theory and practice of equity options in clear, accessible terms.

Starting with a basic introduction to the subject and the language of trading equity and index options, the book moves on to cover option uses, pricing and strategy, then a range of option spreads before concluding with the ways in which options may be combined with the underlying.

It includes plenty of real-world examples drawn from Bill’s extensive career in the industry, along with practical trading tools, including links to a pricing model, and resources. Plentiful exercises of varying degrees of difficulty are also included directing you towards a truly intuitive understanding of the subject.

Trading equity options is a volatile business; options present a unique opportunity to manage and exploit that volatility. Don't let a lack of knowledge hold you back!