Buying and Selling Volatility / Edition 1

by Kevin B. Connolly

Overview

The concept of profiting from trading volatility is not new, but is known to only a few players in the derivatives industry. Buying and Selling Volatility is the first book to explain this trading strategy in detail without using complex mathematics. Offering a new approach to the subject of options, seen purely from a volatility viewpoint, the author uses illustrations to clearly explain the connection between volatility and options. He explains how investors can profit from the volatility, or lack of volatility, of an option price regardless of whether the market rises or falls. Useful to both novice investors and professional traders, Buying and Selling Volatility also supplies the reader with a risk management software system that is comparable to those used commercially.

Product Details

ISBN-13:	9780471968849
Publisher:	Wiley
Publication date:	07/07/1997
Series:	Frontiers in Finance Series , #94
Edition description:	Revised ed.
Pages:	200
Product dimensions:	6.10(w) x 9.39(h) x 0.81(d)

About the Author

Kevin B. Connolly used to be Head of Quantitative Research at JamesCapel & Co. He then joined Cresvale International AssetManagement as Director responsible for instituting scientific riskmanagement for Cresvale's principal Japanese warrants market-makingsection. He is currently undertaking research into complexvolatility trading for Refco Overseas Ltd, and is setting up salesand trading systems for Japanese warrants and convertible bonds forIndependent Capital Corporation. He also lectures at CityUniversity Business School and London Guildhall University, UK.

Table of Contents

An Introduction to the Concept of Volatility Trading.

A Review of Some Basic Concepts.

The Price Profile of Derivatives before Expiry.

The Simple Long Volatility Trades.

The Short Volatility Trade.

Using Put Options in Volatility Trade.

Managing Combinations of Options.

More Complex Aspects of Volatility Trading.

Appendix.

Index.