This is the most useful material ever presented in any book on volatility, how to illustrate volatility visually on a unique type of chart, and then using the chart to make trading decisions. As a result, little profits if any can be made using these techniques. The first few paragraphs are actually a good introduction to volatility, what it is and how to calculate it. Over my 16 years of trading I have purchased and read several trading books. The author shares a plethora of knowledge based on 20 years of trading experience and study of the financial markets.
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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. This book provides a unique and practical perspective about options trading that should be required reading for professional and individual investors.
In 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: Presents strategies for achieving superior returns in widely diverse market conditions.
Includes precise, proven metrics and rules for adjusting complex positions. Leverage price distortions related to earnings and impending options expirations. Use standard desktop software and data sources to build world-class decision-making tools.
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. Unlike conventional guides, The Volatility Edge in Options Trading doesn't rely on oversimplified positional analyses: What's more, Augen shows how to build your own customized analytical toolset using low-cost desktop software and data sources: An options investment strategy that reflects the markets' fundamental mathematical properties.
JEFF AUGEN, currently a private investor and writer, has spent over a decade building a unique intellectual property portfolio of algorithms and software for technical analysis of derivatives prices.
His work includes over one million lines of computer code refl ecting powerful new strategies for trading equity, index, and futures options. He is author of Bioinformatics in the Post-Genomic Era: Would you like to tell us about a lower price? If you are a seller for this product, would you like to suggest updates through seller support?
Read more Read less. Prime Book Box for Kids. Customers who bought this item also bought. Page 1 of 1 Start over Page 1 of 1. The Option Trader's Workbook: A Problem-Solving Approach 2nd Edition. Trading Options at Expiration: Strategies and Models for Winning the Endgame. Strategies and Models for Winning the Endgame paperback. Customers who viewed this item also viewed. Options as a Strategic Investment: Advanced Trading Strategies and Techniques.
An options investment strategy that reflects the markets' fundamental mathematical properties Presents strategies for achieving superior returns in widely diverse market conditions Adaptive trading: FT Press; 1 edition January 27, Language: Don't have a Kindle?
Share your thoughts with other customers. Write a customer review. Read reviews that mention option augen trader traders jeff trade expiration understanding useful analysis standard earnings math trades chapter cycle ideas underlying profit practical. There was a problem filtering reviews right now. Please try again later. The preface says its for experienced options traders, but at best its useful for beginners looking for the next step.
The first few paragraphs are actually a good introduction to volatility, what it is and how to calculate it. After that its OK, going over the basics of Black-Scholes, Binomial tree modesl, calculating volatilities etc. Any experience options trader would know this already. The first few chapters define Gamma, Kurtosis, but then isn't mentioned again for the rest of the book. The final chapter 9 has diagrams of what Jeff believes an IT solution should be structured.
I can't see this of being any use to anyone, most people wont be building their own software applications and if they did, they wouldn't base it on a few dozen vague drawings and descriptions. There is some stuff that isn't regularly talked about, pinning on expiry, changes in stocks volatility over earnings. If you're getting into options and want to order a lot of different books to get different views on the subject it could be handy, otherwise I dont think its so useful. Why is this book so much better than all the other books on trading options?
Incidentally the charting technique can be used very easily by traders who only trade stocks and not options. I'll briefly describe the trading strategies, charts, and insights in chapters 3 through 8. This is the most useful material ever presented in any book on volatility, how to illustrate volatility visually on a unique type of chart, and then using the chart to make trading decisions.
The discussion of differential volatility different volatility for upward price move than downward is totally unique to this book. A trading strategy is presented on trading cycles in volatility, which is visually illustrated in the context of gaining an edge of standard option pricing models. I was not aware that bid ask spreads could chew up so much of the profit from complex trades.
I also found the best discussion ever on how short-term volatility swings affect option prices. First, a superb trading strategy is presented based on Augen's unique price charts. This strategy, based on a reversal of when price moves a specified number of standard deviations, as a trigger for entering trades, can be used very profitably by traders who only trade stocks. Note that a level of 1.
Historical data on stocks can be downloaded for free from several websites. This section is worth its weight in gold. Second, I liked the section on trading synthetic stock. Traders who like to trade directionally will find ways to reduce their cost by selling an option against their long option, resulting in a reduced risk if wrong and a dramatically greater profit, if correct on direction. See All Buying Options. This book is giving us more about options trading from a new perspective.
It's in a new level in helping us move to the next step when it comes to decision making. Being financially stable is one proof that you are successful in options trading. This book is indeed a great help.
Options Trading for Beginners: This is a great book for the beginning options investor. The book is a great resource for the various vocabulary and terminology that a trader will encounter during the course of business.
The topics are laid out in an easy to read format. There are detailed examples offered and graphs included to illustrate the concepts. This book includes a ready-reference guide for all of the different terms that the reader learns located at the back of the book.
This was incredibly convenient as I tried to reference back to what I had read. In addition to being a great reference guide, the author also offers the reader some strategies that can help the reader to stay organized and begin to profit at this complicated activity. This is a must-have for an investor or trader that is just starting out in the world of options The author explains succinctly the factors having influence on the mkt.
He covers each of the greeks in sufficient detail to understand the factors as well as their how and why. This is not a cook-book whose reading passes on techniques. Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition. I have a degree in mathematics and knew This book is for serious option traders.
If you are just a guy at home that wants to learn a bit about options and don't have at least a bit of a math background then this book is not for you. However, if you have an extensive math background you will find this book fairly easy. I have a degree in mathematics and knew nothing about options before this book, so it was confusing at first. After learning the basics from other resources and resorting back to this i find that there is great information in here.
I do not believe this book is completely out-dated The pricing theories and spreading strategies are up to date and he clearly says multiple times that the average trader will have a hard time market making or creating arbitrage opportunities.
That does not mean it's out-dated, it just means that you shouldn't try I have been a full-time retail options trader for the past nine years, and my focus is options income strategies. My options education is from the retail arena.
I've taken courses, seminars, mentorship programs, read lots of books Unfortunately for retail traders, options education is focused on everything but tail risk. In my experience, few address it and less actually actively manage it. The author tackles this issue head on. The book considers strategy, position sizing, and provides great detail in constructing position hedges using VIX options and underlying puts for option income trades.
This is one of the most important books I've read in my options career. Because capital preservation in trading is paramount. No capital, no trading. Prior to reading this book I didn't have a coherent hedging strategy for my options portfolio. How to trade options from A to Z explained in plain English. Available for download now. Follow him to trade like a pro! If you can't trade options well by following this book you should put your money under your bed.
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