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

by Dan Passarelli, William J. Brodsky (Foreword by)

Overview

Passarelli shows how to apply the unique characteristics of options to unlock the power of the greeks—the factors that can have the greatest influence on the price of an option.

Product Details

ISBN-13:	9780470885192
Publisher:	Wiley
Publication date:	05/13/2010
Series:	Bloomberg Financial , #35
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	330
Sales rank:	967,590
File size:	3 MB

About the Author

Dan Passarelli began his career as a floor trader at the Chicago Board Options Exchange (CBOE), trading equity options and later agricultural options and futures on the floor of the Chicago Board of Trade (CBOT). He currently provides options education to retail and institutional traders at a premier brokerage firm. Passarelli was an instructor at the Options Institute, which is the educational arm of the CBOE. He also worked with the Options Industry Council (OIC), educating retail traders via podcasts, webcasts, live seminars, and has written numerous published articles.

Table of Contents

Acknowledgments.

Foreword (William J. Brodsky).

Introduction.

Part I The Basics of Option Greeks.

1 The Basics.

2 Greek Philosophy.

3 Understanding Volatility.

4 Option-Specific Risk and Opportunity.

5 An Introduction to Volatility-Selling Strategies.

6 Put-Call Parity and Synthetics.

7 Rho.

8 Dividends and Option Pricing.

Part II Spreads.

9 Vertical Spreads.

10 Wing Spreads: Condors and Butterflies.

11 Calendar and Diagonal Spreads.

Part III Volatility.

12 Delta-Neutral Trading: Trading Implied Volatility.

13 Delta-Neutral Trading: Trading Realized Volatility.

14 Studying Volatility Charts.

Part IV Advanced Option Trading.

15 Straddles and Strangles.

16 Complex Spreads.

17 The Trader’s Thought Process.

Index.

What People are Saying About This

From the Publisher

"A must-read for individuals who are serious about trading options."
—James Bittman
Author, Trading Options as a Professional

"Dan's book is a primer for options aficionados. Without bogging you down with super-heavy math, he walks you through the key principles and shows you what matters the most to your trading portfolio."
—Fari Hamzei
Founder, Hamzei Analytics, LLC