Make Money Trading Call and Put Options: Using Position-Sizing Method

In this book, I have presented the needed knowledge, skills, and tools to take long option positions based on the direction of the underlying stock price. I have toned down the mathematical and statistical concepts and formulas by referring to them only when needed from traders’ perspective. I have made the profit and loss events clear. Notably, I have explained volatility with the help of tools to determine the edge needed to buy options. Further, I have included a unique method to analyze the open interest and volume data. Also, I have explained the logic of buying the right Strike Price so that you get the maximum short-term acceleration when the stock moves as intended. I also have briefly touched upon chart analysis of the underlying stock. Finally, the big takeaway from this book is the position sizing method, which takes into account your total savings, age, and other details pertaining to the option contract, and derives the total capital that you can set aside for option trading, the probability of success, and the actual amount to be used for a specific position.