How We Trade Options | Jon & Pete Najarian

How We Trade Options: Building Wealth, Creating Income and Reducing Risk

by Jon Najarian & Pete Najarian

How We Trade Options is a guide to achieving professional-level stock market returns using options strategies, regardless of market direction.

Authors and market experts Jon "DRJ" Najarian and Pete Najarian leverage their 70+ years of combined experience to demystify complex financial tools for everyday investors.

Book Focus:

• Income Generation and Wealth Building: The book focuses on using options to generate consistent income with less capital than traditional stock buying.
• Risk Mitigation: A primary focus is learning to define and control risk. Jon Najarian emphasizes strict discipline, such as exiting a trade if it loses 50% of its value or "taking half off the table" once a position doubles.
• Leverage and Flexibility: It explains how options provide significant leverage and the flexibility to profit in up, down, or sideways markets.
• Mastering Modern Tools: Readers are introduced to newer products and technologies, including vertical spreads (puts, calls, and debit/credit spreads) to handle market volatility.

Book Background:

The authors argue that the 2008 mortgage crash leveled the playing field, making it essential for retail investors to master options to compete with professionals. Jon Najarian often draws on his background as a former NFL linebacker for the Chicago Bears to illustrate the discipline required for successful trading.