Option Trading: Pricing and Volatility Strategies and Techniques

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John Wiley & Sons, Jul 16, 2010 - Business & Economics - 336 pages

An A to Z options trading guide for the new millennium and the new economy

Written by professional trader and quantitative analyst Euan Sinclair, Option Trading is a comprehensive guide to this discipline covering everything from historical background, contract types, and market structure to volatility measurement, forecasting, and hedging techniques.

This comprehensive guide presents the detail and practical information that professional option traders need, whether they're using options to hedge, manage money, arbitrage, or engage in structured finance deals. It contains information essential to anyone in this field, including option pricing and price forecasting, the Greeks, implied volatility, volatility measurement and forecasting, and specific option strategies.

  • Explains how to break down a typical position, and repair positions
  • Other titles by Sinclair: Volatility Trading
  • Addresses the various concerns of the professional options trader

Option trading will continue to be an important part of the financial landscape. This book will show you how to make the most of these profitable products, no matter what the market does.

 

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Contents

Title Page
CHAPTER2Introductionto Options
CHAPTER3Arbitrage BoundsforOption Prices
SUMMARY CHAPTER 4Pricing Models
THEBINOMIAL MODEL
The Solution of the BlackScholesMerton BSM Equation
Option Strategies
SUMMARY
CHAPTER9General Principles ofTrading and Hedging
Market Making Techniques
CHAPTER 11Volatility Trading
SUMMARY
CHAPTER 12Expiration Trading
CHAPTER 13Risk Management
Conclusion
APPENDIX BCorrelation

Volatility Estimation
VOLATILITY IN CONTEXT

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About the author (2010)

EUAN SINCLAIR is an option trader with fifteen years of professional trading experience. He specializes in the design and implementation of quantitative trading strategies. Sinclair is currently a proprietary option trader for Bluefin Trading, where he trades based on quantitative models of his own design. He holds a PhD in theoretical physics from the University of Bristol. Sinclair is also the author of the Wiley title Volatility Trading.

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