“Russell Stultz’s The Option Strategy Desk Reference is a fantastic resource for self-directed investors. As a full-time trader myself, the strategies laid out in the book are commonplace for experienced option traders. Russell has done a great job in dissecting the components of each strategy, as well as providing a plan of action for every possible scenario a strategy may encounter. A helpful graph is accompanied with each strategy to precisely illustrate their risk and reward characteristics.
Drawing on personal experience, seasoned option traders usually create their own strategy reference guides after years of testing what works and what does not. With Russell’s book, an amateur trader can avoid much of the painful (and potentially costly) trial-and-error trades in order to achieve success faster. Overall, I would recommend this book to any novice or expert trader looking to expand/reinforce his or her trading toolkit and knowledge base.”
—Michael Marquardt, CPA, MAcc; Options Trading Instructor; Full-time options trader
“If you want options trading strategies stripped down to their most succinct and useful level, you will find them in The Option Strategy Desk Reference. What makes this book so helpful and credible is that Russell Stultz is a successful trader and an outstanding trainer. With the clear, well-organized and complete way he presents each setup, traders can quickly find the information they need without the fluff—it’s pure reference, pure step by step.
I have traded options full time for the last 6 years. Like many others, I have “go to” strategies I use day in and day out. But if I want to employ a trade that is specific to a market situation or that I use infrequently, this desk reference is where I go to confirm I’ve set up the trade correctly. Equally, this book is a source of new ideas—perfect for those times where your “go to” isn’t working or you want to expand your opportunities for new trades.
My bookshelves are filled with the works of authors that taught me option trading. Those books served their purpose. Now what I require is a tool I can grab when I need it and quickly put to work to make my next trade successful. Russ has given me—and now you—that tool.”
—Mark Armstrong, BS Engineering Management, dual MA Marketing and Finance, Full-time options trader
“This is a great reference book. I typically use the same strategies over and over again, but this book is fantastic for experimenting with new option strategies beyond my comfort zone. It’s nice to have all 78 strategies in one place with consistent descriptions for each.
I particularly like how a risk profile accompanies each strategy. The book exemplifies the old saying, “A picture is worth a thousand words.” The graph is a quick way to determine the profit potential and risk exposure for each strategy. In addition, the description of each strategy, goal, management, profit goal, and stop loss are essential additions.”
—Mo Fatemi, BS in Electronic Engineering, MA in Computer Engineering; Founder and Option Trading Instructor, Investors
Business Daily Meetup, Plano, Texas; Lecturer, North Texas
Investment Strategies Club; Full-time options trader
“The Option Strategy Desk Reference by Russell Stultz presents a comprehensive investment study guide to financial options. Mr. Stultz’s unique educational and teaching background has brought together a comprehensive, clearly written, and concise approach to options trading. His book provides a truly comprehensive guide for both beginning and seasoned option traders.
As a full-time, experienced option trader myself, I refer to this book when analyzing and executing my trades. I consider it to be an essential reference in my understanding of how options work, especially with the risk graphs that accompany each of the 78 strategies. The book provides the only strategy reference a serious option trader will ever need. I give this book a 5-star rating!”
—Donald E. Pearson, MD, Full-time options trader
This book was created to provide an extensive option trading tutorial in addition to being a convenient and extensive option strategy reference. It includes 78 option strategies. Each strategy includes a corresponding trade example that can be used by both new and experienced option traders. Each strategy example can be adjusted to fit current market values; each can be entered and thoroughly tested through simulation. Only after the reader understands how the strategy works should he or she risk real money on the selected strategy. Therefore, the author strongly recommends trading in simulation to develop a thorough familiarity with the dynamics of each strategy. When a strategy proves to be reliable, it may be added to the reader’s repertoire of trading strategies.
Why 78 Option Strategies?
It is rare, if not unlikely, for active option traders to use more than 6 to 10 different option strategies. Among these are the short cash covered put, bull call, bull put, iron condor, and perhaps the long call butterfly. But this is only six. The book includes these 6 and another 72. For example, the synthetic long stock combo, among several others, is just one strategy that should probably be added to every option trader’s repertoire of favored strategies. The breadth of the strategies contained within the book is likely to add several more strategy choices from which to choose in order to enhance a trader’s skills and income potential.
Using the Strategies
Each strategy within the book includes a trade setup description; risk and reward potential; a sample trade; a corresponding risk profile that plots each trade’s profit or loss on the basis of the price movements of the underlying security (stock, ETF, financial index, etc.); trader market bias, that is, bullish, neutral, or bearish; setup parameters including the price trend (upward, neutral, or downward); and one or more typical delta values for strike price selection. The delta values are used to determine the probability of a position becoming in the money or remaining out of the money throughout the life of the corresponding option contracts. The primary goal of each trade is included in addition to trade management techniques, and profit or loss recommendations.
finance; income; investing; liquidity; market; options; premium; profit and loss; risk graph; risk management; risk profile; trade management; trading