Overview
Main description
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.
Table of contents
1. VIX and the Art of Position Maintenance
2. And So, My Friends, I Bequeath Unto You, an Index that Will Quantify this Thing You Refer to as Volatility
3. Big Vixin': Can You Compare Volatility Across Eras?
4. Behind the VIX Curtain: How Do Actual Traders Analyze Volatility?
5. Like the Weather: The Trading VIX and Why It Doesn't Work Like You Think
6. Up In Smoke? Can Buying High and Selling Low in Volatility Actually Be a Great Idea?
7. Smile Like You Mean It
8. Time On My Side
9. Ultra Shares: Double Your Way Down to Zero
10. Guilt by Coincidental Association: The Plus Tick Rule
11. Ratio Ratio
12. Conclusion
Author comments
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.
Back cover copy
Trading options is not for the faint of heart, but with Options Volatility Trading you can develop
the 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 Trading
provides a solid cornerstone of up-to-date knowledge on the underlying mechanics of volatility
trading. Written by an experienced trader and educator, this thorough guidebook incorporates
expert analysis and real-world research to explain volatility trading for options.
While exploring a variety of strategies for riding market swings, Options Volatility Trading
shows 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 volatility
at 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 navigate
the information-rich path of volatility to find profits in any type of market.
