Options Math for Traders, + Website How To Pick the Best Option Strategies for Your Market Outlook
, by Nations, Scott
- ISBN: 9781118164372 | 1118164377
- Cover: Hardcover
- Copyright: 10/30/2012
Options Math for Traders will explain in relatively simple language the mathematical properties of options so that traders can better select the right options strategy for their market outlook. Those phenomena include the volatility premium because, over time, options will cost more than they are ultimately worth; skew, wherein far out of the money put options may seem cheap from an absolute term but, like a lottery ticket, they're very expensive in relative terms; and the acceleration in option price erosion as expiration nears, which - for trading purposes -- tends to favor longer-dated options for long positions and shorter-dated options for short positions. The material will be explained without complex equations or technical jargon. The goal is to give retail traders a sufficient conceptual foundation of options behavior so that will make much more informed decisions in deciding on a strategy to fit their market outlook. The book will include a companion website, OptionMath.com, which will provide basic calculators for option price, implied volatility, etc. but will also scan the U.S. option market for the best trades in those strategies discussed in the book. Every day a site subscriber will be able to find the best put spread to buy or covered call to sell or the calendar spread with the greatest difference in rates of erosion in addition to the other trades discussed in the book. Purchasers of the book would provide a temporary subscription to the pay wall side of the site.
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