Options Volatility Trading: Strategies for Profiting from Market Swings by Warner, Adam;

Short description:

Trading options is not for the faint of heart, but with Options Volatility Trading you can developthe 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 Tradingprovides a solid cornerstone of up-to-date knowledge on the underlying mechanics of volatilitytrading. Written by an experienced trader and educator, this thorough guidebook incorporatesexpert analysis and real-world research to explain volatility trading for options.

While exploring a variety of strategies for riding market swings, Options Volatility Tradingshows 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 volatilityat 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 navigatethe information-rich path of volatility to find profits in any type of market.

Long description:

How to collect big profits froma volatile options market

Over the past decade, the concept ofvolatility has drawn attention fromtraders in all markets across theglobe. Unfortunately, this scrutiny has alsocreated a proliferation of myths about whatvolatility means and how it works.

Options Volatility Trading deconstructs someof the common misunderstandings about volatilitytrading and shows you how to successfullymanage an options trading account andinvestment portfolio with expertise.This reliable guidebook provides an in-depthlook at the volatility index (VIX) and demonstrateshow to use it in conjunction withother analytical tools to determine an accuratemeasure of investor sentiment. However,recognizing a trend isn’t enough. In order togive you everything you need to profit in theoptions market, Options Volatility Tradingalso features:

• Detailed analysis of historicalvolatility patterns in the contextof trading activity
• Insights into the behavioral psychologyof trading volatility
• Revealing examinations of marketnoise that distorts exploitable anomalies

Author Adam Warner, a recognized tradingstrategist and financial writer, sheds lighton the required mathematics by thoroughlycovering options Greeks and building a solidfoundation for more advanced optionsand volatility concepts. He explains how to diversify your investment choices using thelatest trading vehicles on the market, includingexchange traded funds (ETFs), whichoffer exceptional money-earning potentialfor volatility traders.

Applying the conceptual lessons in thisin-depth book, you will be able to identify,collect, and process the abundance of dataavailable every day in order to time the marketslike a pro, as well as develop your owntoolbox of best practices and time-testedstrategies for locking in big profits fromdramatic shifts in investor sentiment.Most importantly, Options Volatility Tradingprovides you with a go-to resource of dependableguidelines that will help you become asuccessful volatility trader in options and anyother market.

How to collect big profits froma volatile options market

Over the past decade, the concept ofvolatility has drawn attention fromtraders in all markets across theglobe. Unfortunately, this scrutiny has alsocreated a proliferation of myths about whatvolatility means and how it works.

Options Volatility Trading deconstructs someof the common misunderstandings about volatilitytrading and shows you how to successfullymanage an options trading account andinvestment portfolio with expertise.This reliable guidebook provides an in-depthlook at the volatility index (VIX) and demonstrateshow to use it in conjunction withother analytical tools to determine an accuratemeasure of investor sentiment. However,recognizing a trend isn’t enough. In order togive you everything you need to profit in theoptions market, Options Volatility Tradingalso features:

• Detailed analysis of historicalvolatility patterns in the contextof trading activity
• Insights into the behavioral psychologyof trading volatility
• Revealing examinations of marketnoise that distorts exploitable anomalies

Author Adam Warner, a recognized tradingstrategist and financial writer, sheds lighton the required mathematics by thoroughlycovering options Greeks and building a solidfoundation for more advanced optionsand volatility concepts. He explains how to diversify your investment choices using thelatest trading vehicles on the market, includingexchange traded funds (ETFs), whichoffer exceptional money-earning potentialfor volatility traders.

Applying the conceptual lessons in thisin-depth book, you will be able to identify,collect, and process the abundance of dataavailable every day in order to time the marketslike a pro, as well as develop your owntoolbox of best practices and time-testedstrategies for locking in big profits fromdramatic shifts in investor sentiment.Most importantly, Options Volatility Tradingprovides you with a go-to resource of dependableguidelines that will help you become asuccessful volatility trader in options and anyother 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