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Passarelli, Dan

Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit

Passarelli, Dan - Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit, ebook

59,50€

Ebook, ePUB with Adobe DRM
ISBN: 9780470885192
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Printing99 pages with an additional page accrued every 8 hours, capped at 99 pages
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Veteran options trader Dan Passarelli explains a new methodology for option trading and valuation. With an introduction to option basics as well as chapters on all types of spreads, put-call parity and synthetic options, trading volatility and studying volatility charts, and advanced option trading, Trading Option Greeks holds pertinent new information on how more accurate pricing can drive profit.

Most options traders focus on strategies such as covered calls, vertical spreads, butterflies and condors, and so on. But traders often don't know how to use the "greeks"—the five factors that influence an option's price—to trade more effectively.

The "greeks" (Delta, Gamma, Theta, Vega, Rho) are tools to measure minute changes in an option's price based on corresponding changes in:

  • Interest rates

  • Time to expiration

  • Price changes in the underlying security

  • Volatility

  • Dividends

Using the greeks can lead to more accurate pricing information that will alert an option trader to mispriced derivatives that can be exploited for profit. In straightforward language and making use of charts and examples, Passarelli explains how to use the greeks to be a better options trader.

Author(s)
 
Publisher
John Wiley and Sons, Inc.
Publication year
2008
Language
en
Edition
1
Series
Bloomberg Professional
Page amount
330 pages
Category
Economy
Format
Ebook
eISBN (ePUB)
9780470885192
Printed ISBN
9781576602461

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