Table of Contents

CHAPTER 1 – RISK REVERSAL 

Section 1 – Risk Reversal Material 
Section 2 – Risk Reversal as an Independent Position 

CHAPTER 2 – RISK REVERSAL CRITERIA 

Section 1 – Step One – Pick an Instrument You Have a Strong Opinion Section 2 – Step Two – Pick the Direction you Believe the Market will Move Section 3 – Step Three – Determine the Time Frame 
Section 4 – Important Side Note on Volatility 
Section 5 – Step Four – Determine the +/- 1SD Bands 
Section 6 – Step Five – Pick the Left or Right Side First 
Section 7 – Step Six – Start With The Sale Side First 
Section 8 – Step Seven – Find the Other Side of the Trade 
Section 9 – Step Eight – Pick your Favorite and Execute it, or Get More Cerebral 
Section 10 – Step Nine – Taking It One Step Further Intro 
Section 11 – Step Ten – Know your Variables 
Section 12 – Step Eleven – Think about Trade Objective 
Section 13 – Step Twelve – Bring Back the Option Chain(s) 
Section 14 – Step Thirteen– Compare and Contrast All Option Combinations 
Section 15 – Step Fourteen – Choose the Call or Call Spread Fits Your Opinion 
Section 16 – Step Fifteen – Place the Trade 
Section 17 – Step Sixteen – Exit Points / Adjustment Points 

CHAPTER 3 – ADVANCED FLIPPING RISK REVERSAL

Section 1 – Risk Reversal Conceptualization
Section 2 – Advanced Risk Reversal 
Section 3 – Example 
Section 4 – Gamma Scalping Comparison 
Section 5 – Closing Statement 

CHAPTER 4 – ADVANCED RISK REVERSAL ENTRANCE CRITERIA 

Section 1 – Step One – Chose A Direction 
Section 2 – Step Two – Choose The Product / Underlying 
Section 3 – Step Three – Make Certain That The Product You Chose Can Move More Than 3-4 strikes in Either Direction 
Section 4 – Step Four – Picking the Time Frame
Section 5 – Step Five – Determine the Maximum Amount Of Risk You Are Willing To Take 
Section 6 – Step Six – Start Pulling Up The Option Chain
Section 7 – Step Seven – Determine the +/- 1SD Bands
Section 8 – Step Eight – Determine What Side of the Equation You Are More Concerned About
Section 9 – Step Nine – Preface
Section 10 – Step Ten – Sell Vertical Spread
Section 11 – Step Eleven – Review the Trade
Section 12 – Step Twelve – Execute the Trade
Section 13 – Step Thirteen – Catalog Your Trade And Move Into The “Position Management” 

CHAPTER 5 – POSITION MANAGEMENT CRITERIA

Section 1 – Step One – Know Your Position (s)
Section 2 – Step Two – Objectives?
Section 3 – Step Three – Stop Loss – Liquid Adjustment
Section 4 – Step Four – Original Position Management
Section 5 – Step Five – Set Up Game Plan
Section 6 – Step Six – Address the Short Vertical Side First (Working to Find Trade #2 – the initial hedge) 
Section 7 – Step Seven – Pull up Current Option Chain (Working to Find Trade #2 – the initial hedge)
Section 8 – Step Eight – Find the Hedge for the Short Vertical / Over Hedge  Section 9 – Step Nine – Analyze the Long Vertical Side to Spread Off
Section 10 – Step Ten – Pick the Best Vertical Spread To Sell
Section 11 – Step Eleven – Go Back To The Short Vertical Side of this Trade And Hedge That
Section 12 – Step Twelve – Add Up The Ending Position
Section 13 – Step Thirteen – Wait for the Market to Move Again
Section 14 – Step Fourteen – Repeat The Coin Flip
Section 15 – Closing Positions

CHAPTER 6 – SOFTWARE FOR RISK REVERSAL S P R E A D

CHAPTER 7 – APPENDIX

Section 1 – Managing Large Overlapping Positions by Greeks
Section 2 – Trading Overlapping Positions
Section 3 – Guesstimating the Strike Price
Section 4 – Volatility Skew