(219 pages, $49.99 hardcover, 2012, ISBN 978-0-13-282340-1) by Dennis A. Chen and Mark Sebastian, published by FT Press.
If you want to earn a steady, reliable income from options, you need to run your option portfolio as a business. The authors introduce a practical “insurance business” framework for trading options: a framework built on techniques proven in the world’s largest financial institutions. Chen and Sebastian identify the option concepts most critical to long-term success and present core income strategies based on selling rather than purchasing options. Using real-world examples, they walk you through setting up your option business, offering an “operations manual” for addressing every day-to-day issue you’ll face. Drawing on their experience, they teach lessons about maintaining discipline, managing volatility and risk, handling infrastructure and payments, and more. To earn reliable income from options, you must be systematic, disciplined, and professional. This book will guide you.