Options Exposed PlayBook: The Most Popular and Profitable Online Option Strategies of All Time

by Don A. Singletary

Quick Summary

A practical reference guide to options trading strategies, organized as a "playbook" format covering 30+ strategies from basic calls and puts through advanced multi-leg positions. Singletary, a 25-year trading veteran, emphasizes credit spread strategies for generating monthly income, covered call writing, and options for portfolio protection, with step-by-step explanations of strategy mechanics, risk profiles, and real-world application for online retail option traders.

Detailed Summary

Don A. Singletary's "Options Exposed PlayBook" functions as a comprehensive reference manual for online options traders, organizing strategies from basic to advanced in a practical playbook format. The book is oriented toward retail traders using online brokerages with fast execution and low commissions.

The foundational chapters cover options contract basics: the distinction between calls (the right to buy) and puts (the right to sell), the components of option pricing (intrinsic value and time value), and the Greeks (delta, gamma, theta, vega) that measure an option's sensitivity to changes in underlying price, time, and volatility. Singletary emphasizes that understanding these components is essential for selecting the right strategy for a given market outlook.

The strategy chapters are organized by objective. Income strategies include covered calls (selling call options against owned stock to generate premium income), cash-secured puts (selling put options against cash reserves to generate income while potentially acquiring stock at a lower price), and credit spreads (selling options closer to the money while buying further out-of-the-money options for protection). Singletary presents credit spreads as the core income strategy, arguing that they offer favorable risk/reward characteristics with defined maximum loss and high probability of profit when constructed properly.

Protection and hedging strategies cover protective puts (buying puts as portfolio insurance), collars (combining covered calls with protective puts), and various multi-leg structures that limit downside exposure. Speculative strategies include long calls and puts, straddles (buying both a call and put at the same strike price, profiting from large moves in either direction), strangles, and butterfly spreads.

For each strategy, Singletary provides the construction (which options to buy and sell at which strikes and expirations), the profit/loss profile (maximum profit, maximum loss, and breakeven points), the optimal market conditions, and practical notes on management and adjustment. The book emphasizes the importance of position sizing relative to account size and the discipline of closing positions at predetermined profit targets or loss limits.

The bonus chapter on monthly income strategies details a systematic approach to selling credit spreads on a regular schedule, targeting 10-20% returns on risk in positions held for less than 30 days, with risk limited to $250-$500 per trade. This approach represents the practical application of the principle that option sellers have a statistical edge due to the time decay of option premium.