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Options math for traders : how to pick the best option strategies for your market outlook /
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. The idea behind Options Math for Traders + Website is...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Hoboken, N.J. :
John Wiley & Sons,
©2012.
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| Colección: | Wiley trading series
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| Temas: | |
| Acceso en línea: | Texto completo (Requiere registro previo con correo institucional) |
Tabla de Contenidos:
- Options Math for Traders; Contents; Preface; THE PHENOMENA; THE GOAL; THE STRATEGIES; THE TAKEAWAYS; JUST ONE EQUATION; ABOUT THE WEBSITE; GETTING STARTED IN OPTION TRADING; Acknowledgments; PART ONE The Basics; CHAPTER 1 The Basics; OPTION SPECIFICS; DESCRIBING AN OPTION; OPTION COST AND VALUE; Inherent Value; Time Value; HOW TIME VALUE CHANGES; DOING THE SAME FOR PUTS; MONEYNESS; CHAPTER 2 Direction, Magnitude, and Time; MAGNITUDE AND TIME ARE RELATED; UP AND DOWN AREN'T THE ONLY POSSIBILITIES; THE PATH MATTERS; VOLATILITY COMBINES THESE ISSUES; CHAPTER 3 Volatility; RISK IS VOLATILITY.
- INVESTORS DEMAND A RISK PREMIUM, REDUCING THE PRICE OF RISKY ASSETSVOLATILITY IS THE STANDARD DEVIATION OF RETURNS; STANDARD DEVIATION TELLS US WHAT RANGE OF OUTCOMES TO EXPECT; STANDARD DEVIATION OF RETURNS IS VOLATILITY; TYPES OF VOLATILITY; Forecast Volatility; Future Volatility; CHAPTER 4 Option Pricing Models and Implied Volatility; IT'S AN OPTION PRICING MODEL, NOT AN EQUATION FOR OPTION VALUES; A BLACK-SCHOLES EXAMPLE; THE ASSUMPTIONS; INPUTS TO THE BLACK-SCHOLES OPTION PRICING MODEL; IMPLIED VOLATILITY; THE SENSITIVITY OF OPTION PRICES TO CHANGES IN THE INPUTS; Delta; Theta; Gamma.
- VegaRho; PART TWO The Phenomena; CHAPTER 5 The Volatility Risk Premium; VOLATILITY RISK PREMIUM, THE WHAT; THE ASSUMPTIONS, THE WHY OF THE VOLATILITY RISK PREMIUM; THE VOLATILITY RISK PREMIUM-HOW MUCH; HOW TO THINK ABOUT THE VOLATILITY RISK PREMIUM; THE VOLATILITY RISK PREMIUM BY ASSET CLASS; THE VOLATILITY RISK PREMIUM OVER TIME; CHAPTER 6 Implied Volatility and Skew; IMPLIED VOLATILITY BY STRIKE PRICE; OPTION SKEW, THE WHEN; OPTION SKEW, THE WHERE; ASSUMPTIONS, THE FIRST WHY OF OPTION SKEW; ASSUMPTIONS AND OTHER REASONS; DETERMINING IF ONE OPTION IS A GOOD HEDGE FOR ANOTHER OPTION.
- SKEW, THE HOW MUCHCHAPTER 7 Time Value and Decay; TIME VALUE BY STRIKE PRICE; THETA-THE MEASURE OF DAILY OPTION TIME VALUE EROSION; OPTION PRICE EROSION DOESN'T HAPPEN IN A STRAIGHT LINE; OPTION PRICE EROSION, THE WHAT; ANOTHER WAY OF LOOKING AT DAILY EROSION; CHAPTER 8 The Bid/Ask Spread; WHAT DO WE MEAN BY "THE MARKET"?; MARKET MAKERS; BID/ASK SPREAD, THE WHAT; DELTA'S IMPACT ON BID/ASK SPREADS; WIDER BID/ASK SPREADS; THE BID/ASK SPREAD WHEN THERE'S MORE COMPETITION; EQUITY OPTIONS; THE BID/ASK FOR OPTION SPREADS; THE BID/ASK OF MULTI-LEGGED SPREADS.
- WHAT'S THE REAL FAIR VALUE OF AN OPTION BASED ON THE BID/ASK?CHAPTER 9 Volatility Slope; THE CORRELATION BETWEEN MARKET PRICES AND IMPLIED VOLATILITY; The Volatility Slope; THE VOLATILITY SLOPE, THE WHY; THE ASYMMETRY; VOLATILITY SLOPE AND SKEW ARE RELATED; PART THREE The Trades; CHAPTER 10 Covered Calls; COVERED CALLS ARE BEST FOR STOCKS YOU ALREADY OWN AND WANT TO KEEP; THE PHENOMENA AND COVERED CALLS; BREAKEVEN POINTS; BREAKEVEN POINTS AND RATES OF RETURN; Option Premium Yield; Return if Called Away; USING COVERED CALLS FOR DOWNSIDE PROTECTION; IF OUR STOCK RALLIES.