Download or read book Informed Option Trading Strategies written by Cyriel de Jong and published by . This book was released on 2004 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use a sequential trade model to clarify two mechanisms following the introduction of an option that may lead to increased efficiency in the underlying. On the one hand, market makers learn from trades in the option market and set more accurate prices. On the other hand, the proportion of informed traders in the stock market may be altered depending on the informed traders' strategies. If insiders trade a larger fraction than uninformed traders in the stock, for example because the immediate profits in the stock are larger, spreads in the stock widen, and price errors may increase. This reduces the efficiency increase from the 'learning' effect, possibly to the extent that overall efficiency deteriorates. We use simulations to analyze the resulting impact in a dynamic setting. For realistic parameter values we find that option trading leads to lower price errors in the underlying. The more popular options are, the more quickly information is incorporated in the underlying prices. However, uninformed traders do not necessarily benefit from this speedier convergence. Their stock performance crucially depends on the insider's trading strategy and the fraction of informed trading.
Download or read book Informed Option Trading Strategies written by Cyriel de Jong and published by . This book was released on 2001 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Bible of Options Strategies written by Guy Cohen and published by Pearson Education. This book was released on 2005 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents today's most effective strategies for trading options :how and why they work, when they're appropriate, when they're inappropriate, and how to use each one responsibly and with confidence. This book will help you identify and implement the optimal strategy for every opportunity, trading environment, and goal.
Download or read book The Option Trader Handbook written by George Jabbour and published by John Wiley & Sons. This book was released on 2004-06-03 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Strategies, tools, and proven solutions for minimizing risk and volatility in option trading The Option Trader Handbook helps readers better understand trade management by providing a thorough compilation of the numerous trade adjustments, hedges, and enhancements that can be made to stock or option positions using derivatives. Dr. George Jabbour is the Director of the Master of Science in Finance (MSF) Program at The George Washington University as well as a professor of derivatives, financial engineering and investments. Dr. Jabbour has published various articles in professional financial journals and regularly speaks at conferences in the United States and abroad regarding option pricing models, financial management, and risk management. He also is a managing director of Global Asset Investments, LLC, an asset management and derivative consulting firm, and CEO of Global Finance Associates, Inc., a financial training, consulting and research company. Dr. Jabbour regularly conducts seminars in option trading and valuation, and is a very active equity and derivative trader. Philip Budwick has a law degree and a Master of Science in Finance and frequently writes articles on option trading strategies and investments. Mr. Budwick is a managing director of Global Asset Investments, LLC and a managing member of Budwick InvestmentGroup, LLC, an option trading and investment software firm. He also conducts discussion groups and offers option investment training through Option Trading Coach, LLC and is an active option and stock trader.
Download or read book Options Trading Strategies written by Benjamin Collins and published by . This book was released on 2020-06-23 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: ◆ Stop Gambling, start trading! Learn how to start using the fundamentals of options trading that bring success in the most volatile market. Are you planning to start trading options to make a living? Or you are already in the game but can't find your way due to overwhelming terms and details. Don't worry, we have all been there - and the good news is there is a way out. All you need is to learn how to use the required "basics" to trade - and not gamble - your way to financial success. ◆ Learn to get better Every knowledge, mistakes, wins, and failures count. Some of us have learned from our mistakes and wins. So, for budding traders not to fall into the same ditch like us, you should learn. Until you start learning the technicalities and secret strategies of options trading, you may record failures more than success. ◆ Why did many fail to succeed in options trading? Now, you want to learn from other people's mistakes, right? Don't worry, you'll find out - and even more. However, here is a brief: Most unsuccessful traders hit the options market without prior knowledge. As for the others, they merely "assume" that they are ready. Most people only read the tips and tricks of learning; they have not "learned options trading." Emotion never helps make an informed decision in options trading. Sadly, it is a fact many people that fail in options trading never knew from the start. Those who consider options trading as a "get rich quick" scheme have already failed before starting. Many jumped into options trading without a clear goal - and left with zero. ◆ Who can become a successful trader? If I can become a successful trader, so do you. As a matter of fact, anybody can trade options successfully. But it comes with a price. So, let me share the price that I paid with you. Like any budding and serious trader who is willing to succeed, I tried every possible lead. From studying the markets, watching the news on options trading, reading books, and listening to the professional, trust me, I tried everything. Yet, things kept falling apart. After a few years, I decided to unlearn, learn, and relearn. First off, I start focusing on becoming a trader, rather than earning money. From there, I carefully looked at my previous mistakes, try different strategies, and test-run many techniques. Gradually, everything starts to check out. Before long, I begin managing trades successfully. I thought it's a stroke of luck until I used my know-how for my family, friends, and acquaintances, and it worked again like magic. At this point, I realized that I have mastered how to become a successful trader from the beginning. After several thoughts and supports from colleagues, I decided to share my secrets with people in the book. As the book title suggests, you'll learn: Basics of options trading How to start options trading as a beginner Common mistakes of trading and how to avoid them The challenges of options trading with effective solutions Options trading system, market concepts, and four basic strategies. 13 practical strategies of options trading with case studies. Bonus strategies worth using to have a successful trade. Exit strategies to have a profitable business. And some top secrets you need to succeed. In short, this book will help you "unlearn, learn and relearn" as I did. Your journey to becoming a successful options trader starts now, don't miss the chance!
Download or read book Informed Trading in Options Markets and Its Information Value written by Justin Vitanza and published by . This book was released on 2015 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In this paper, I present evidence that informed traders represent a large enough portion of option market activity to impact market prices. By entering the market on the long side before positive or negative events, they drive up both open interest and ask prices, while bid prices remain relatively stable. Seeing this pattern is indicative of either positive (when found in calls) or negative (for puts) future news announcements. When conditioning on these announcements, we also see that this pattern predicts return reactions. In particular, information embedded in option prices is useful in predicting earnings surprises and reactions to mergers. My primary measure of option information content is the change in the difference between implied volatility and realized daily volatility measured over the previous month. With hindsight, this difference rises prior to positive announcements for call options, while it rises prior to negative announcements for put options. This differential behavior provides strong evidence that these assets are not redundant in practice, as is often implied by option pricing models. Further, this information constitutes a primary risk factor in equity markets, as positive announcement risk is positively related to future returns due to the procyclicality of these announcements. Efficiently utilizing this information suggests a long-short trading strategy that yields over 1.2 percent per month. This strategy also completely explains the call-put volatility spread anomaly and is robust to controls for aggregate volatility sensitivity and known metrics that purport to monitor informed trading"--Page v.
Download or read book Informed Options Trading Prior to M A Announcements written by Patrick Augustin and published by . This book was released on 2014 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: "There is often a tip. Before many big mergers and acquisitions, word leaks out to select investors who seek to covertly trade on the information. Stocks and options move in unusual ways that aren't immediately clear. Then news of the deals crosses the ticker, surprising everyone except for those already in the know. Sometimes the investor is found out and is prosecuted, sometimes not. That's what everyone suspects, though until now the evidence has been largely anecdotal. Now, a groundbreaking new study finally puts what we've instinctively thought into hard numbers -- and the truth is worse than we imagined. A quarter of all public company deals may involve some kind of insider trading, according to the study by two professors at the Stern School of Business at New York University and one professor from McGill University. The study, perhaps the most detailed and exhaustive of its kind, examined hundreds of transactions from 1996 through the end of 2012. The professors examined stock option movements -- when an investor buys an option to acquire a stock in the future at a set price -- as a way of determining whether unusual activity took place in the 30 days before a deal's announcement. The results are persuasive and disturbing, suggesting that law enforcement is woefully behind -- or perhaps is so overwhelmed that it simply looks for the most egregious examples of insider trading, or for prominent targets who can attract headlines. The professors are so confident in their findings of pervasive insider trading that they determined statistically that the odds of the trading 'arising out of chance' were 'about three in a trillion.' (It's easier, in other words, to hit the lottery.) But, the professors conclude, the Securities and Exchange Commission litigated only 'about 4.7 percent of the 1,859 M. & A. deals included in our sample.'"--Andrew Ross Sorkin, NY Times, June 16, 2014.
Download or read book Psychology of Option Trading Book written by Mahesh Chandra Kaushik and published by Prabhat Prakashan. This book was released on 2023-12-16 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mahesh Chandra Kaushik started his career as a teacher, after doing graduation with a Bachelors Degree in Science. He worked as a Junior Clerk in Commercial Taxes Department for five years and then as TRA in Revenue Departmental the Rajasthan Pubic Service Commission. He was promoted and is presently posted as Assistant Revenue Accounts Officer in the office of District Collector, Sirohi. He has been wing blogs on share market since 2009. Later, due to SEBI Research Analyst Regulation 2014 he had to stop blogging. He has more than ninety thousand followers on social media and You Tube. Now he provides the services as a Research Analyst free of cost.
Download or read book Options written by Options Institute (Chicago Board Options Exchange) and published by . This book was released on 1995 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: This authoritative guide offers an easy-to-understand, fundamental explanation of the goals and objectives of each player involved in the options trade. Along with this tactical information, traders will gain insight into trading strategies and options concepts. Includes coverage of EAPs, CAPs, and industry indexes.
Download or read book Mastering Options Trading written by Mark M Darby and published by Independently Published. This book was released on 2024-03-30 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do you find the challenges of trading options too much to handle? Do you often find yourself searching through materials in the hopes of discovering the secrets that will lead you to financial success in the trading world? Do you want a genuine, results-driven passive cash flow? Something that can make you an expert option trader? There's nowhere else to look! Introducing "Mastering Options Trading - Proven Strategies For Financial Success!" With the aim of guiding you through the world of options trading, this unique book will provide you with the information and abilities necessary to succeed in the extremely unpredictable global financial markets. Regardless of your level of experience, the extensive range of this book is an ideal method for you to get some understanding and try out different strategies. With the correct information and resources, you may rapidly discover that options are not dangerous and that you can achieve financial independence once you know how to trade them. This in-depth analysis of options trading will teach you the basics of what options are, how they interact with one another, and how YOU may trade them to make money. Regardless of your level of expertise, Mark M. Darby provides all the essential knowledge required for success in the stock market. You'll immediately comprehend and thoroughly understand what you are learning so you can put it into practice thanks to his realistic and real-life analogies at every stage. With this engaging read, you'll discover and learn: Basic Option Trading Strategies Advanced Option Trading Strategies Option Pricing Models The difference between Call and Put Options The types of Options trades and how to use each to your advantage My step-by-step procedures to make profit How to think like an Options trader so you can make informed decisions The confidence to start trading Options today! And much, much more. Discover the "secret sauce" required to trade options profitably from a trader with more than a decade of experience. It's time to permanently dispel the misconception that options are difficult and risky. You can become a profitable options trader if you can read this book, perform some basic math, and put what you've learned into practice. Scroll up and click the BUY button now
Download or read book Options Made Easy written by Guy Cohen and published by Pearson Education. This book was released on 2013 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master option trading, visually, hands-on -- and discover the powerful, easy-to-use OVI indicator that leads the market, revealing what the world's savviest option traders are doing right now! Learn option trading from the newest edition of Guy Cohen's international best-seller Options Made Easy, which has earned a worldwide reputation for its simplicity, clarity and hands-on practicality. With outstanding graphics for step-by-step learning, this easy tutorial packed with real trades is designed to reinforce every new trader's learning experience. Using plain English and clear illustrations to explain each key trading strategy, Cohen avoids complex math while effortlessly delivering the practical knowledge traders need. Now, in this eagerly-anticipated Third Edition, Cohen updates all examples and data, utilizing the market's new option symbols throughout, and presenting a more streamlined, focused, and up-to-date review of relevant chart patterns and technical analyses. Most important, he thoroughly introduces his breakthrough OVI indicator, revealing how it captures the implications of actual option transaction data, and presents signals even beginners can use to earn consistent profits. Step by step, Cohen walks traders through: Filtering for stocks and selecting the right strategy for each situation Implementing proven strategies for income, including covered calls and bull put spreads Trading volatility through straddles and strangles Using butterflies and condors to trade rangebound markets Understanding trading psychology and its impact on option trades And much more
Download or read book Options Math for Traders written by Scott Nations and published by John Wiley & Sons. This book was released on 2012-10-01 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 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.
Download or read book Mastering Options Trading written by Chidiebere Iroegbu and published by Independently Published. This book was released on 2024-04 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Unlock the Secrets to Profitable Options Trading Today! Are you tired of feeling overwhelmed by the complexities of Options Trading? Do you find yourself constantly searching for strategies that actually work? Have you ever wondered if there's a better way to navigate the unpredictable world of financial markets? Author Chidiebere Iroegbu knows your struggles all too well. With years of experience in Options Trading, he's faced the same challenges and frustrations that you have. But he didn't let setbacks hold him back. Instead, he explored deeper, honed his skills, and developed strategies that have led to consistent success in the markets. Discover insider techniques for maximizing profits and minimizing risks in Options Trading. Learn how to effectively analyze market trends and make informed trading decisions. Master the art of timing your trades for optimal results in any market condition. Explore advanced options strategies used by seasoned professionals to gain an edge. Gain confidence in your trading abilities with practical tips and real-world examples. Unlock the power of technical analysis and chart patterns to spot lucrative opportunities. Avoid common pitfalls and costly mistakes that trip up novice traders. Take your trading to the next level with actionable insights and proven strategies from a seasoned expert. If you want to take control of your financial future and unlock the potential of Options Trading, then scroll up and buy this book today. It's time to turn your aspirations into achievements and start trading with confidence!
Download or read book Basics of Option Trading written by Sankar Srinivasan and published by Srinivasan Sankara Narayanan. This book was released on 2023-04-23 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: In "Basics of Option Trading," acclaimed author Sankar Srinivasan, a certified market professional of the National Stock Exchange of India, presents a comprehensive guide that demystifies the world of options trading. Whether you are a novice investor or an experienced trader looking to expand your knowledge, this book provides a solid foundation in understanding and leveraging options as powerful financial instruments. With a clear and concise writing style, Sankar Srinivasan unravels the complexities of options trading and introduces readers to the fundamental concepts and terminology. Starting from the ground up, you'll learn about the different types of options, the mechanics of option pricing, and the key factors influencing option values. The author's extensive experience in the financial industry shines through as he explains the various strategies and techniques employed by successful option traders. From covered calls and protective puts to vertical spreads and straddles, Sankar Srinivasan breaks down each strategy, highlighting their advantages and risks, and offers practical examples to illustrate their implementation. This book goes beyond theory by providing valuable insights into the real-world dynamics of option trading. You'll discover how to analyze market trends, identify profitable opportunities, and manage risk effectively. Sankar Srinivasan's expertise is complemented by his ability to convey complex ideas in a beginner-friendly manner, making this book an invaluable resource for traders of all levels. Whether your goal is to generate additional income, protect your investments, or enhance your trading strategies, this book equips you with the essential knowledge and skills to navigate the world of options trading with confidence. Master the art of options and unlock the potential for greater financial success.
Download or read book Options Theory and Trading written by Ron Ianieri and published by John Wiley & Sons. This book was released on 2009-05-27 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: When used correctly, options can greatly enhance your profits. The leverage they provide allows small accounts to trade like big ones, without the normally associated risks. And, in times of financial turmoil, options can keep you from incurring catastrophic losses. There are many ways in which options can both protect your portfolio and help you profit but in order to take advantage of these opportunities, you have to learn how to properly use options in your investment endeavors. As the cofounder and former chief options strategist for the Options University, and now as founder of ION Options, author Ron Ianieri is one of the most well-respected, and well-informed, individuals in this field. Over the course of his successful twenty-plus-year career in the options market, he has trained many professional traders, as well as numerous active investors. Now, with Options Theory and Trading, he shares his extensive experience with you. Based on a proven option-trading course created by Ianieri, which follows a logical step-by-step progression, this book opens with an in-depth explanation of option terms and theory in Part One because learning the language and understanding the theory is the foundation upon which successful option strategies are built. Continuing along these lines, Ianieri takes the time to explore the unique risks and rewards of call and put options, and introduces you to the option pricing model, the "Greeks," and synthetic positions. In Part Two, Ianieri moves on to basic trading strategies involving stock and options, including the covered call/buy-write strategy, the covered put/sell-write strategy, the protective put strategy, the synthetic put/protective call strategy, and lastly, the collar strategy. In addition to this, you'll also discover the role of the "lean" in options trading and how to "roll" your position to establish a stream of income. While Ianieri demonstrates how well options function in unison with a stock position enhancing potential gains, providing profit protection, and limiting the risk of the entire investment he also examines how they can be even more effective when traded against each other. In Part Three, you'll gain an in-depth understanding of how to use vertical, diagonal, and time spreads in this way, and discover how straddles and strangles which both feature the use of options in unison with one other can help you achieve strong premium collection. Rounding out this detailed discussion of options is a close look at combination strategies. Part Four of Options Theory and Trading takes you through fully hedged strategies known as the Butterfly and the Condor, and offers practical advice on how and when to use them. In an environment of increasing volatility, there's great risk of market corrections endangering the capital of individual investors around the world. What you need to achieve long-term success in today's market is the right guidance. With Options Theory and Trading, you'll quickly discover how to use options to increase your portfolio's profit potential and reduce the risks you'll inevitably face.
Download or read book Option Day Trading A Beginner s Guide to Option Day Trading written by Chetan Singh and published by Chetan Singh. This book was released on with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Option Day Trading: A Beginner's Guide to Option Day Trading" is the perfect book for anyone who wants to learn how to trade options. Whether you're a complete beginner or an experienced trader looking to improve your skills, this book provides a complete guide to options day trading. The options trading book covers all the essential concepts and terminology that you need to know to get started with options trading. It explains the advantages and risks of options trading, the different types of options, and the key factors that affect option pricing. In addition, the options trading books for beginners cover popular option trading strategies, including long calls and puts, vertical spreads, butterfly spreads, straddles, strangles, and iron condors. It provides tips on how to choose the right strategy for different market conditions, and how to manage risk through position sizing and trade management. Finally, the day trading options book covers the psychology of trading and how to overcome common emotional pitfalls, as well as more advanced topics such as volatility trading, options on futures, and trading for income.
Download or read book Options Trading Strategies written by Benjamin Collins and published by . This book was released on 2020-06-16 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: ◆ Stop Gambling, start trading! Learn how to start using the fundamentals of options trading that bring success in the most volatile market. Are you planning to start trading options to make a living? Or you are already in the game but can't find your way due to overwhelming terms and details. Don't worry, we have all been there - and the good news is there is a way out. All you need is to learn how to use the required "basics" to trade - and not gamble - your way to financial success. ◆ Learn to get better Every knowledge, mistakes, wins, and failures count. Some of us have learned from our mistakes and wins. So, for budding traders not to fall into the same ditch like us, you should learn. Until you start learning the technicalities and secret strategies of options trading, you may record failures more than success. ◆ Why did many fail to succeed in options trading? Now, you want to learn from other people's mistakes, right? Don't worry, you'll find out - and even more. However, here is a brief: Most unsuccessful traders hit the options market without prior knowledge. As for the others, they merely "assume" that they are ready. Most people only read the tips and tricks of learning; they have not "learned options trading." Emotion never helps make an informed decision in options trading. Sadly, it is a fact many people that fail in options trading never knew from the start. Those who consider options trading as a "get rich quick" scheme have already failed before starting. Many jumped into options trading without a clear goal - and left with zero. ◆ Who can become a successful trader? If I can become a successful trader, so do you. As a matter of fact, anybody can trade options successfully. But it comes with a price. So, let me share the price that I paid with you. Like any budding and serious trader who is willing to succeed, I tried every possible lead. From studying the markets, watching the news on options trading, reading books, and listening to the professional, trust me, I tried everything. Yet, things kept falling apart. After a few years, I decided to unlearn, learn, and relearn. First off, I start focusing on becoming a trader, rather than earning money. From there, I carefully looked at my previous mistakes, try different strategies, and test-run many techniques. Gradually, everything starts to check out. Before long, I begin managing trades successfully. I thought it's a stroke of luck until I used my know-how for my family, friends, and acquaintances, and it worked again like magic. At this point, I realized that I have mastered how to become a successful trader from the beginning. After several thoughts and supports from colleagues, I decided to share my secrets with people in the book. As the book title suggests, you'll learn: Basics of options trading How to start options trading as a beginner Common mistakes of trading and how to avoid them The challenges of options trading with effective solutions Options trading system, market concepts, and four basic strategies. 13 practical strategies of options trading with case studies. Bonus strategies worth using to have a successful trade. Exit strategies to have a profitable business. And some top secrets you need to succeed. In short, this book will help you "unlearn, learn and relearn" as I did. Your journey to becoming a successful options trader starts now, don't miss the chance!
