Options Volatility Trading: Strategies for Profiting from Market Swings - Hardcover

Warner, Adam

Hardcover

ISBN 10: 0071629653 ISBN 13: 9780071629652

Publisher: McGraw Hill, 2009

Synopsis

How to collect big profits from a volatile options market

Over the past decade, the concept of volatility has drawn attention from traders in all markets across the globe. Unfortunately, this scrutiny has also created a proliferation of myths about what volatility means and how it works.

Options Volatility Trading deconstructs some of the common misunderstandings about volatility trading and shows you how to successfully manage an options trading account and investment portfolio with expertise. This reliable guidebook provides an in-depth look at the volatility index (VIX) and demonstrates how to use it in conjunction with other analytical tools to determine an accurate measure of investor sentiment. However, recognizing a trend isn’t enough. In order to give you everything you need to profit in the options market, Options Volatility Trading also features:

• Detailed analysis of historical volatility patterns in the context of trading activity
• Insights into the behavioral psychology of trading volatility
• Revealing examinations of market noise that distorts exploitable anomalies

Author Adam Warner, a recognized trading strategist and financial writer, sheds light on the required mathematics by thoroughly covering options Greeks and building a solid foundation for more advanced options and volatility concepts. He explains how to diversify your investment choices using the latest trading vehicles on the market, including exchange traded funds (ETFs), which offer exceptional money-earning potential for volatility traders.

Applying the conceptual lessons in this in-depth book, you will be able to identify, collect, and process the abundance of data available every day in order to time the markets like a pro, as well as develop your own toolbox of best practices and time-tested strategies for locking in big profits from dramatic shifts in investor sentiment. Most importantly, Options Volatility Trading provides you with a go-to resource of dependable guidelines that will help you become a successful volatility trader in options and any other market.

About this title

From the Publisher:

Adam Warner is the founder of the “Daily Options Report” and a faculty member of the popular trading website, Minyanville. com. His writings have appeared on a number of sites, including Tradingmarkets.com, Stocktwits.com, and Wallstrip.com. Warner has traded options professionally for over 20 years. He lives in suburban New Jersey.

From the Back Cover:

Trading options is not for the faint of heart, but with Options Volatility Trading you can developthe confidence and know-how you need to gain a distinct advantage over other traders.

Whether you’re just starting out or currently managing a portfolio, Options Volatility Tradingprovides a solid cornerstone of up-to-date knowledge on the underlying mechanics of volatilitytrading. Written by an experienced trader and educator, this thorough guidebook incorporatesexpert analysis and real-world research to explain volatility trading for options.

While exploring a variety of strategies for riding market swings, Options Volatility Tradingshows you how to:

• Buy and sell according to the volatility trend
• Manage long and short gamma positions
• Handle the swings of expiration week
• Effectively use double and triple leveraged ETFs
• Utilize put/call ratios to your advantage

You will learn where and when to look for certain types of trades and what happens to volatilityat various times of the year . . . and different days of the week.

Options Volatility Trading is your road map to becoming an enlightened trader who can navigatethe information-rich path of volatility to find profits in any type of market.

About this edition

• Publisher: McGraw Hill
• Publication date: 2009
• ISBN 10: 0071629653
• ISBN 13: 9780071629652
• Binding: Hardcover
• Edition number: 1
• Number of pages: 304