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Product Identifiers

PublisherWiley & Sons, Incorporated, John

ISBN-101118164377

ISBN-139781118164372

eBay Product ID (ePID)117137872

Product Key Features

Book TitleOptions Math for Traders, + Website : How to Pick the Best Option Strategies for Your Market Outlook

Number of Pages272 Pages

LanguageEnglish

TopicFinance / General, Investments & Securities / Options

Publication Year2012

IllustratorYes

GenreBusiness & Economics

AuthorScott Nations

Book SeriesWiley Trading Ser.

FormatHardcover

Dimensions

Item Height0.9 in

Item Weight16 Oz

Item Length9.3 in

Item Width6.3 in

Additional Product Features

Intended AudienceTrade

LCCN2012-022697

Reviews"Options Math for Traders + Website: How to Pick the Best Option Strategies for Your Market Outlook by Scott Nations is an excellent educational tool for the investor wishing to utilize options in their investment strategies. Options Math for Traders guides you and helps you understand the thought process when evaluating and analyzing risk and reward on an options trade". -- Dax Rodriguez , President, Livevol, Inc.

Dewey Edition23

Series Volume Number581

Dewey Decimal332.64530151

Table Of ContentPreface ix Acknowledgments xvii Part One The Basics Chapter 1 The Basics 3 Chapter 2 Direction, Magnitude, and Time 17 Chapter 3 Volatility 25 Chapter 4 Option Pricing Models and Implied Volatility 37 Part Two The Phenomena Chapter 5 The Volatility Risk Premium 51 Chapter 6 Implied Volatility and Skew 63 Chapter 7 Time Value and Decay 77 Chapter 8 The Bid/Ask Spread 87 Chapter 9 Volatility Slope 105 Part Three The Trades Chapter 10 Covered Calls 115 Chapter 11 Selling Puts 151 Chapter 12 Calendar Spreads 171 Chapter 13 Risk Reversal 197 Chapter 14 Vertical Spreads 217 Appendix 235 Index 243

SynopsisA practical guide to the math behind options and how that knowledge can improve your trading performance No book on options can guarantee success, but if a trader understands and utilizes option math effectively, good things are going to happen. The idea behind Options Math for Traders + Website is to help retail option traders understand some of the basic tenants and enduring relationships of options, and option math, that professional and institutional traders rely on every day. This book skillfully highlights those strategies that are inherently superior from an option math point of view and explains what drives that superiority while also examining why some strategies are inherently inferior. The material is explained without complex equations or technical jargon. The goal is to give you a solid conceptual foundation of options behavior so you can make more informed decisions when choosing an option strategy for your market outlook. Topics covered 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 are very expensive in relative terms; and the acceleration in option price erosion. The book also has a companion Website, which includes links to those sites that can scan for the best strategies discussed in the book. Explains, in a non-technical manner, the mathematical properties of options so that traders can better select the right options strategy for their market outlook Companion Website contains timely tools that allow you to continue to learn in a hands-on fashion long after closing the book Written by top options expert Scott Nations Most independent traders have an imperfect understanding of the math behind options pricing. With Options Math for Traders + Website as your guide, you'll gain valuable lessons in this area and discover how this information can improve your trading performance., A practical guide to the math behind options and how that knowledge can improve your trading performance No book on options can guarantee success, but if a trader understands and utilizes option math effectively, good things are going to happen., Praise for Options Math for Traders "Just as he does every week on CNBC's Options Action , Scott helps everyone from a basic to advanced trader understand options in a clear, straightforward manner. Scott has the ability to transfer his immense knowledge of options in a way that is inviting rather than intimidating and can help traders select an options strategy to best reflect their thoughts on the market." JJ Kinahan , Chief Derivatives Strategist, TD Ameritrade "Options trading for individual investors has come a long way from just simply 'going long' a call or a put. Understanding the basic mathematical principles behind options pricing, as well as basic strategies, will help build a solid foundation for the aspiring trader. Scott Nations combines those principles with real-world experience to create a winning combination." Kris Monaco , Head of New Product Development, International Securities Exchange LLC "For anyone who finds options or the concepts of volatility challenging, Scott helps simplify them. Scott helps options traders of all backgrounds better understand these markets and trade more profitably." Michael Khouw , Managing Director, Head of Equity Derivatives, CRT Capital Group, LLC; CNBC contributor Divided into three informative parts, Options Math for Traders + Website addresses some of the most essential issues of this discipline, from the volatility risk premium, skew, and the bid/ask spread to time value and decay, option pricing models, and implied volatility. Along the way, it also offers valuable guidance into using proven option strategies, including covered calls/overwrites, selling puts, buying calendar spreads, risk reversals, and vertical spreads. Options Math for Traders + Website puts an emphasis on practical application. To that end, this book provides readers with exclusive access to a companion website filled with supplementary materials,?allowing you to continue to learn in a hands-on fashion long after closing the book.

LC Classification NumberHG6024.A3N35 2012