Trading Options Greeks

Author: Dan Passarelli
Publisher: John Wiley & Sons
ISBN: 1118133161
Size: 74.17 MB
Format: PDF, Docs
View: 6655

A top options trader details a practical approach for pricing and trading options in any market condition The options market is always changing, and in order to keep up with it you need the greeks—delta, gamma, theta, vega, and rho—which are the best techniques for valuing options and executing trades regardless of market conditions. In the Second Edition of Trading Options Greeks, veteran options trader Dan Pasarelli puts these tools in perspective by offering fresh insights on option trading and valuation. An essential guide for both professional and aspiring traders, this book explains the greeks in a straightforward and accessible style. It skillfully shows how they can be used to facilitate trading strategies that seek to profit from volatility, time decay, or changes in interest rates. Along the way, it makes use of new charts and examples, and discusses how the proper application of the greeks can lead to more accurate pricing and trading as well as alert you to a range of other opportunities. Completely updated with new material Information on spreads, put-call parity and synthetic options, trading volatility, and advanced option trading is also included Explores how to exploit the dynamics of option pricing to improve your trading Having a comprehensive understanding of the greeks is essential to long-term options trading success. Trading Options Greeks, Second Edition shows you how to use the greeks to find better trades, effectively manage them, and ultimately, become more profitable.

Trading Option Greeks

Author: Dan Passarelli
Publisher: John Wiley and Sons
ISBN: 047088519X
Size: 37.30 MB
Format: PDF, Docs
View: 585

Veteran options trader Dan Passarelli explains a new methodology for option trading and valuation. With an introduction to option basics as well as chapters on all types of spreads, put-call parity and synthetic options, trading volatility and studying volatility charts, and advanced option trading, Trading Option Greeks holds pertinent new information on how more accurate pricing can drive profit. Most options traders focus on strategies such as covered calls, vertical spreads, butterflies and condors, and so on. But traders often don't know how to use the "greeks"—the five factors that influence an option's price—to trade more effectively. The "greeks" (Delta, Gamma, Theta, Vega, Rho) are tools to measure minute changes in an option's price based on corresponding changes in: Interest rates Time to expiration Price changes in the underlying security Volatility Dividends Using the greeks can lead to more accurate pricing information that will alert an option trader to mispriced derivatives that can be exploited for profit. In straightforward language and making use of charts and examples, Passarelli explains how to use the greeks to be a better options trader.

How To Calculate Options Prices And Their Greeks

Author: Pierino Ursone
Publisher: John Wiley & Sons
ISBN: 1119011620
Size: 25.39 MB
Format: PDF, Docs
View: 6571

Too often option payoffs are merely based on a two-dimensional approach consisting of a P&L versus underlying at expiry as is evident in most existing literature. This is misleading as the Greeks can make or break a strategy during its lifetime. In How to Calculate the Value of Options Prices and their Greeks, emphasis is placed on a deep and thorough understanding of the Greeks (first, second and third order), informing the reader how the pay-off of an option (strategy) will be influenced by time, underlying, strike and volatility. The book fully explains the distribution of the Greeks along a range of strikes (the whole range wherein an option has optionality), assisting the reader to understand how the Greeks are changing in relation to different strikes, but also in relation to time, volatility and underlying. Further it will discuss many trading strategies such as spreads, straddle, strangle, butterflies, kurtosis, vega, and convexity to name but a few. The author discusses how hedging strategies on the gamma can make or break a P&L. The text begins by guiding the reader through the more basic options, such as the put-call parity towards the concepts of probability distribution and volatility. The book then covers the main Greeks (delta, gamma vega and theta) followed by an in-depth discussion of several trading strategies including a four dimensional approach of P&L versus strike, underlying, volatility and time to maturity.

Trading Options As A Professional Techniques For Market Makers And Experienced Traders

Author: James Bittman
Publisher: McGraw Hill Professional
ISBN: 9780071642835
Size: 61.52 MB
Format: PDF, ePub
View: 1740

The options market allows savvy investors to assume risk in a way that can be very profitable, if the right techniques are used with the proper insight. In Trading Options as a Professional, veteran floor trader James Bittman provides both full-time and professional traders with a highly practical blueprint for maximizing profits in the global options market. This peerless guide helps you think like a market maker, arms you with the latest techniques for trading and managing options, and guides you in honing your proficiency at entering orders and anticipating strategy performance. Most importantly, it gives you access to one of the world's leading educators and commentators as he candidly defines the seven trading areas that are essential for successful options traders to master: Option price behavior, including the Greeks Volatility Synthetic relationships Arbitrage strategies Delta-neutral trading Setting bid and ask prices Risk management You will benefit from Bittman's exceptional understanding of volatility, his perceptive examples from the real world, and the dozens of graphs and tables that illustrate his strategies and techniques. Each chapter is a complete, step-by-step lesson, and, collectively, give you the best toolbox of profit-making solutions on the options trading floor. In addition, Trading Options as a Professional comes with Op-Eval Pro, a powerful software that enables you to analyze your trades before you make them by calculating implied volatility, graphing simple and complex options strategies, and saving analyses to review later. Don't be left guessing on the sidelines--trade with the confidence of a market maker by following the road map to higher profits in Trading Options as a Professional.

An Introduction To Options Trading

Author: Frans de Weert
Publisher: John Wiley & Sons
ISBN: 9781119994985
Size: 59.62 MB
Format: PDF
View: 2472

Explaining the theory and practice of options from scratch, this book focuses on the practical side of options trading, and deals with hedging of options and how options traders earn money by doing so. Common terms in option theory are explained and readers are shown how they relate to profit. The book gives the necessary tools to deal with options in practice and it includes mathematical formulae to lift explanations from a superficial level. Throughout the book real-life examples will illustrate why investors use option structures to satisfy their needs.

No Hype Options Trading

Author: Kerry W. Given
Publisher: John Wiley & Sons
ISBN: 9780470947326
Size: 50.61 MB
Format: PDF, ePub, Docs
View: 7695

A straightforward guide to successfully trading options Options provide traders and investors with a wide range of strategies to lock in profits, reduce risk, generate income, or speculate on market direction. However, they are complex instruments and can be difficult to master if misunderstood. No-Hype Options Trading offers the straight truth on how to trade the options market. In it, author Kerry Given provides realistic strategies to consistently generate income every month, while debunking many myths about options trading that tend to lead retail traders astray. Along the way, he makes a conscious effort to avoid complex strategies that are appropriate only for market makers or professional traders, and instead focuses on low-risk strategies that can be easily implemented and managed by a part-time trader. Shows how you can use option spreads in conjunction with stocks to produce a regular stream of income Each chapter includes exercises to help you master the material presented Examines how you can adjust option positions as market conditions change in order to maintain an optimal risk/reward profile Written for anyone interested in successfully trading options, this reliable resource cuts through the hype and misinformation that surrounds options trading and presents a realistic path to profits.

Think Like An Option Trader

Author: Michael Benklifa
Publisher: FT Press
ISBN: 0133065375
Size: 66.13 MB
Format: PDF, Mobi
View: 6648

THE SECRET TO PROFITING FROM OPTIONS: THINK LIKE A PROFESSIONAL OPTION TRADER, NOT A STOCK TRADER! Understand the unique dynamics of options trades and markets Practical, concise insights based on actual option trading scenarios Master trade selection, risk management, and more By professional options trader Michael Benklifa, best-selling author of Profiting with Iron Condor Options Want to win in options? You must think like a professional option trader. Step #1: Get rid of the habits you learned in stock trading: they’re killing you! Step #2: Understand the real dynamics of options markets: they are radically, fundamentally different. Example: When stock traders look at price, they see information. Option traders see probability, time, and volatility. Example: Stock trading is about having an information advantage. Option trading can be about exploiting a lack of information. Example: Stocks either go up or they don’t. Option trades can be structured for a 90% probability of success. With dynamics like these, option trading is like nothing else. Through practical, simple examples, Michael Benklifa will help you understand what’s really going on here…so you can consistently build trades that earn profits and control risk!

The Market Taker S Edge Insider Strategies From The Options Trading Floor

Author: Dan Passarelli
Publisher: McGraw Hill Professional
ISBN: 0071754946
Size: 28.50 MB
Format: PDF, ePub, Docs
View: 4044

TRADE OPTIONS LIKE A SEASONED PRO! A Trading-Floor Veteran Shares his Secrets "What I like about Dan's book is that it's obvious he isn't just telling you how to trade, he's telling you how he trades. There's always a big difference between those who teach trading from an academic standpoint and those who have traded and have the ability to walk investors step by step through the trade. For my money, I always seek advice and counsel from those that walk the walk and Dan Passarelli has walked the walk." Jon Najarian, cofounder Trademonster.com On Dan Passarelli’s first day as a clerk on the exchange floor, he spent the morning observing, practicing his hand signals, and running errands. Around midday, the veteran clerk he worked with said to him, “You’re up. I’m going to lunch.” Dan survived his trial by fire and went on to spend many years on the trading fl oor. He credits his success as a trader and educator to the hands-on experience he gained throughout his career. With The Market Taker’s Edge, Passarelli shares the knowledge and insights other floor traders keep tight to their chests—the knowledge you need to beat the market on a regular basis. This market maker turned market taker delivers a focused commentary on key concepts for operating in the options exchange like a pro. He offers a candid look at the ups and downs of his trading career and conveys the lessons he learned along the way in an informative and often entertaining way. After spending time on the floor in his shoes, you’ll understand: How professional traders attempt to make money—and why it’s different from the way you make money Why market makers are not the enemy How both market takers and market makers can profit while taking opposite sides of the same trade How to focus on what is important in a trade and avoid the noise Dan Passarelli has already taught thousands of people how to make a living as traders, and now with The Market Taker’s Edge, he can help you do it, too.

An Option Greeks Primer

Author: Jawwad Farid
Publisher: Springer
ISBN: 1137371676
Size: 75.46 MB
Format: PDF, ePub
View: 873

This book provides a hands-on, practical guide to understanding derivatives pricing. Aimed at the less quantitative practitioner, it provides a balanced account of options, Greeks and hedging techniques avoiding the complicated mathematics inherent to many texts, and with a focus on modelling, market practice and intuition.

Option Trading

Author: Euan Sinclair
Publisher: John Wiley & Sons
ISBN: 9780470642528
Size: 18.96 MB
Format: PDF, Kindle
View: 3871

An A to Z options trading guide for the new millennium and the new economy Written by professional trader and quantitative analyst Euan Sinclair, Option Trading is a comprehensive guide to this discipline covering everything from historical background, contract types, and market structure to volatility measurement, forecasting, and hedging techniques. This comprehensive guide presents the detail and practical information that professional option traders need, whether they're using options to hedge, manage money, arbitrage, or engage in structured finance deals. It contains information essential to anyone in this field, including option pricing and price forecasting, the Greeks, implied volatility, volatility measurement and forecasting, and specific option strategies. Explains how to break down a typical position, and repair positions Other titles by Sinclair: Volatility Trading Addresses the various concerns of the professional options trader Option trading will continue to be an important part of the financial landscape. This book will show you how to make the most of these profitable products, no matter what the market does.