The Options Trading Body of Knowledge By Michael Thomsett – Instant Download!
The Options Trading Body of Knowledge by Michael C. Thomsett – A Complete Reference for Options Traders
A Definitive Guide to the Options Industry
If you want one book that explains the options world from top to bottom, The Options Trading Body of Knowledge: The Definitive Source for Information About the Options Industry by Michael C. Thomsett is designed exactly for that role.
Rather than focusing on just a few strategies, this book serves as a comprehensive reference, covering:
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Basic terminology and mechanics
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Strategy design and structure
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Risk and valuation concepts
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Options on stocks, futures, indices, ETFs, and more
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Even taxation and market history
New traders can use it as a clear, go-to handbook for unfamiliar terms or strategies, while experienced traders can dig deeper into how complex positions are built and managed.
Note: Options are complex instruments and involve significant risk. In most countries, you must be 18+ to trade them. This book is educational and not personal financial advice.
From Basics to Advanced Strategies
Thomsett walks you through the full landscape of options trading, including:
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Core Concepts
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Calls, puts, strike prices, expiration, and premium
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Time value, intrinsic value, and how these change
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The role of volatility and time decay
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Strategy Structure and Use
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Covered calls and protective puts
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Spreads, straddles, strangles, and combinations
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Synthetic positions and how they replicate other trades
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For each strategy, he explains:
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How the trade is structured
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When it’s typically used
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How risk and reward are distributed
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Where profit, loss, and breakeven zones lie (with tables and illustrations)
This combination of explanation plus visuals helps you understand not just what a strategy is, but how it behaves under different market conditions.
Deep Dive Into Risk and Option Value
A major strength of this book is its focus on risk understanding, not just trade ideas. You’ll learn how to think about:
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Market risk and volatility
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Inflation and interest rate influences
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Portfolio-level risk, not just single trades
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Knowledge risk – what you don’t know that can hurt you
Thomsett also explains how option premium is built from different elements:
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Time-to-expiration
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Underlying price
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Implied volatility
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Intrinsic vs. extrinsic value
This helps traders better understand why options are priced the way they are and what might cause those prices to change.
Options Across Different Markets
The book goes beyond stock options and explores how options apply to:
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Futures
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Indices
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ETFs and funds
You’ll see how the same core ideas adapt to different underlying instruments, giving you a broader view of the entire options marketplace, including its history, evolution, and trends.
Taxes, Returns, and Practical Details
Unlike many strategy-only books, The Options Trading Body of Knowledge also touches on important practical topics, such as:
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How to think about returns on options trades
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The basics of tax treatment for options (from a U.S. perspective)
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How traders choose stocks and other underlyings for options trading
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A complete glossary and resource list for further study
These extras make it a more complete desktop reference for serious students of options.
What Experts Say
Industry professionals have praised the book as a much-needed reference:
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Jim Bittman, author of Trade Options Like a Professional, calls it a truly complete reference for both basic and advanced option topics.
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Marty Kearney, Senior Staff Instructor at The Options Institute, says traders at all levels will appreciate Thomsett’s easy-to-read style and A-to-Z structure.
About the Author: Michael C. Thomsett
Michael C. Thomsett is a well-known name in options education. His work includes:
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The bestseller Getting Started in Options (over 250,000 copies sold)
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Options Trading for the Conservative Investor
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Winning with Options
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The LEAPS Strategist
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The Investment and Securities Dictionary, recognized as an Outstanding Academic Book
Before becoming a full-time author, he worked as an accountant and consultant in financial services, and he has been an active options trader since the mid-1970s. His background allows him to combine practical market experience with clear explanations.
Who Is This Book For?
This reference is ideal if you:
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Want a single, comprehensive source on options concepts and strategies
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Are a beginner needing clear explanations of unfamiliar terms and ideas
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Are an intermediate or advanced trader who wants deeper insight into risk, structure, and valuation
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Prefer to understand why strategies work, not just how to enter orders
If you’re building a serious foundation in options or want a long-term desk reference you can return to again and again,
The Options Trading Body of Knowledge is designed to be that cornerstone resource.
