Average Reviews:
(More customer reviews)A friend of mine in the trading industry suggested I read this gem of a book ... within a single weekend I did just that ... and what a gem it is!
Jeff Augen has put together a fine body of work in this book within which there are some seriously valuable nuggets of information.
The volatility spike graphs are a novelty in this business that anyone studying and trading volatility should benefit from. Essentially what he's uncovering is "differential volatility", in other words whether the volatility is being caused by buyers or sellers.
Typically, falling prices (due to selling action) will cause greater volatility, but not always. Sometimes the volatility is caused by rising prices. By understanding the direction in which the greater volatility of the underlying is occurring, the trader is able to position trades more appropriate to that skew. For example if the spikes indicate that volatility is caused by buying action then the calls may well be undervalued in advance of the next spike up. The trader can then make a double whammy trade, correct in direction and correctly in volatility.
Other nuggets include Jeff's slant on expiration date and earnings cycle trading, and the concept of stocks pinning to the strike, all of which are essential chapters in the book.
You'll be a more knowledgeable trader for reading this book and you should become a better trader for sure.
Click Here to see more reviews about: The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets
"Jeff's analysis is unique, at least among academic derivatives textbooks. I would definitely use this material in my derivatives class, as I believe students would benefit from analyzing the many dimensions of Jeff's trading strategies. I especially found the material on trading the earnings cycle and discussion of how to insure against price jumps at known events very worthwhile."—DR. ROBERT JENNINGS, Professor of Finance, Indiana University Kelley School of Business"This is not just another book about options trading. The author shares a plethora of knowledge based on 20 years of trading experience and study of the financial markets. Jeff explains the myriad of complexities about options in a manner that is insightful and easy to understand. Given the growth in the options and derivatives markets over the past five years, this book is required reading for any serious investor or anyone in the financial service industries."—MICHAEL P. O'HARE, Head of Mergers & Acquisitions, Oppenheimer & Co. Inc."Those in the know will find this book to be an excellent resource and practical guide with exciting new insights into investing and hedging with options."—JIM MEYER, Managing Director, Sasqua Field Capital Partners LLC"Jeff has focused everything I knew about options pricing and more through a hyper-insightful lens! This book provides a unique and practical perspective about options trading that should be required reading for professional and individual investors."—ARTHUR TISI, Founder and CEO, EXA Infosystems; private investor and options traderIn The Volatility Edge in Options Trading, leading options trader Jeff Augen introduces breakthrough strategies for identifying subtle price distortions that arise from changes in market volatility. Drawing on more than a decade of never-before-published research, Augen provides new analytical techniques that every experienced options trader can use to study historical price changes, mitigate risk, limit market exposure, and structure mathematically sound high-return options positions. Augen bridges the gap between pricing theory mathematics and market realities, covering topics addressed in no other options trading book. He introduces new ways to exploit the rising volatility that precedes earnings releases; trade the monthly options expiration cycle; leverage put:call price parity disruptions; understand weekend and month-end effects on bid-ask spreads; and use options on the CBOE Volatility Index (VIX) as a portfolio hedge. Unlike conventional guides, The Volatility Edge in Options Trading doesn't rely on oversimplified positional analyses: it fully reflects ongoing changes in the prices of underlying securities, market volatility, and time decay. What's more, Augen shows how to build your own customized analytical toolset using low-cost desktop software and data sources: tools that can transform his state-of-the-art strategies into practical buy/sell guidance.An options investment strategy that reflects the markets' fundamental mathematical propertiesPresents strategies for achieving superior returns in widely diverse market conditionsAdaptive trading: how to dynamically manage option positions, and why you mustIncludes precise, proven metrics and rules for adjusting complex positionsEffectively trading the earnings and expiration cyclesLeverage price distortions related to earnings and impending options expirationsBuilding a state-of-the-art analytical infrastructureUse standard desktop software and data sources to build world-class decision-making tools
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2 comments:
I have been browsing online more than 3 hours today, yet I never found any fascinating article like yours….. There are lots of advantages to option trading as an investment technique. One of the primary advantages is that buying and selling options requires you in order to commit less capital for an investment than an inventory or other type associated with market trade requires. Nevertheless, you can make just as much or more profit just like other types of deals. This can mean more income in your pocket for any smaller investment. Keep upon sharing!!!
There are many stock options methods that different investors use. You need to study them and select those that you believe are most fitted to your risk tolerance and your objectives. Never enter into a trade without knowing ahead why you are taking that approach and what you will do under certain circumstances, no matter how you are feeling about them.
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