Sunday, October 10, 2010

e-Book #1: Non-directional option trading plan for Iron Butterflies

Ok, here is my proposed outline for the first e-Book I'll be working on this quarter:

Title: Non-directional option trading plan for Iron Butterflies

Chapters:

1. Introduction
1.1 What is non-directional trading
1.2 What are options
1.3 A word on probability & volatility
1.4 Define risk to you
1.5 Greeks basics
1.6 Mix it all up: The Iron Butterfly
1.7 Educational resources

2. Trading Plan
2.1 Purpose
2.2 Objective
2.3 Trading style
2.4 Infrastructure
2.5 Emergency procedures

3. The Iron Butterfly Strategy
3.1 Strategy details
3.2 Entry guidelines
3.3 Adjustment guidelines
3.4 Exit guidelines
3.5 Known exceptions

4. Monitoring the plan
4.1 Trading Journal
4.3 Looking at performance
4.4 When to update the plan

5. Tools of the trade
5.1 Money management 101
5.2 Volatility cone
5.3 Trade dashboard
5.4 Market monitoring tips
5.5 Support system
5.6 Trading platform