Trading Options in Turbulent Markets

Larry Shover 지음

Bloomberg Press 2012년 11월 30일 출간

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책소개

Top options expert Larry Shover returns to discuss how to interpret, and profit from, market volatilityTrading Options in Turbulent Markets, Second Edition skillfully explains the intricacies of options volatility and shows you how to use options to cope, and profit from, market turbulence. Throughout this new edition, options expert Larry Shover reveals how to use historical volatility to predict future volatility for a security and addresses how you can utilize that knowledge to make better trading decisions.Along the way, he also defines the so-called Greeks-delta, vega, theta, and gamma-and explains what drives their values and their relationship to historic and implied volatility. Shover then provides effective strategies for trading options contracts in uncertain times, addressing the decision-making process and how to trade objectively in the face of unpredictable and irrational market moves.Includes a new chapter of the VIX, more advanced material on volatility suitable for institutional or intermediate options trader, and additional volatility-based strategiesAnswers complex questions such as: How does a trader know when to tolerate risk and How does a successful trader respond to adversity?Provides a different perspective on a variety of options strategies, including covered calls, naked and married puts, collars, straddles, vertical spreads, calendar spreads, butterflies, condors, and moreAs volatility becomes a greater focus of traders and investors, Trading Options in Turbulent Markets, Second Edition will become an important resource for in-depth insights, practical advice, and profitable strategies.

목차

Preface xiiiAcknowledgments xvIntroduction xviiPART I: UNDERSTANDING THE RELATIONSHIP BETWEEN MARKET TURBULENCE AND OPTION VOLATILITY 1CHAPTER 1 Managing Risk and Uncertainty with Options 3What Is Risk? 4What Is Uncertainty? 4Seven Lessons Learned from Market Volatility 5Understanding Derivatives 7The Six Benefits of Options 9CHAPTER 2 Making Sense of Volatility in Options Trading 13Volatility as an Asset Class 14Analyzing Volatility with Implied Volatility 16What Does Implied Volatility Reveal? 16Making Trading Decisions Based on the Disparity betweenHistorical and Implied Volatility 17Appreciating Volatility for All It Is Worth 19How Volatility Really Works on the Trading Floor 20Volatility and Uncertainty: Lessons for the Irrational Option Trader 21Varieties of Option Volatility Trading 23CHAPTER 3 Working with Volatility to Make Investment Decisions 25On Predicting the Future 25Starting with Historical Volatility 27Implied Volatility 32Why Do Volatilities Increase as Equities Fall? 35Implied Versus Historical Volatility 36Justification for the Disparity between Historical and Implied Volatility 37CHAPTER 4 Volatility Skew: Smile or Smirk? 39Considering Some Examples 40A Primer on Random Walk and Normal Distribution 41Dealing with the Higher Moments of the Normal Distribution 45Skew Is High, Skew Is Low. So What? 47Does a “Flat” or “Steep” Skew Predict the Future? 48A Fair Warning about Thinking about Skew too Much 49CHAPTER 5 Fixated on Volatility and the VIX: What Is Volatility, Anyhow? 51What We (Think) We Know 52Definitions of VIX 54Grasping the VIX Index 54VIX&m-A (Very) Brief History 55VIX: Calculation and Interpretat

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저자(글) Larry Shover

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LARRY SHOVER has been a firm and proprietary options trader for more than twenty#45;five years and can be seen on networks such as Bloomberg, BNN, CNBC, CNN, FOX Business, Phoenix Television, and SKY. He is currently Chief Investment Officer and Portfolio Manager to Solutions Funds Group, Inc., a managed futures mutual fund. A large portion of his career has been dedicated to developing his own proprietary trading firm, and he has also served as director of education and senior vice president of trading at several commodities and options firms. Shover was a member of the CME and the Chicago Board Options Exchange (CBOE) and holds several Financial Industry Regulatory Authority (FINRA) licenses. He is also the author of the first edition of this title, published by Wiley.