The Options Edge: Winning the Volatility Game with Options On Futures

In The Options Edge, William Gallacher focuses on the world of options on futures, exposing the shortcomings of current theoretical pricing formulae and offering a simple, understandable, and widely applicable option pricing model without invoking any complicated mathematics whatsoever. Gallacher’s watershed book represents nothing less than a new mindset for trading options on futures, a revolutionary approach that depends less on esoteric, theoretical abstractions and more on empirical evidence gathered from the real world of options trading.

Introduction:

The Options Edge will most likely appeal to readers with some practical experience in the trading of options. It has been written, however, to be accessible to inexperienced traders who have a strong desire to understand the workings of the options market. Compared with other technical books on the subject, The Options Edge is rather sparing in the use of algebra and complex statistical formulae. However, the book does delve deeply into the principles of statistical inference. It also analyzes a great deal of data, but data structured in a way that anyone with an affinity for numbers should find easily digestible. The author takes it for granted that anyone interested in options is interested in numbers.

Whereas much of what I have to say applies to options in general, including stock options, the findings of The Options Edge derive from, and are specifically relevant to, options on commodity futures. Before writing this book, I had to spend much time and effort constructing a data base from which to draw conclusions. This data base is included in full at the end of the book and may prove useful to other researchers who wish to check out, statistically, for themselves, questions they may have about different option trading strategies.

Contents:

• ROADS LESS TRAVELED
• FAST FORWARD
• OCKHAM’S EQUATION
• THE WORD OF GOD
• THE EMPEROR OF CHINA’S NOSE
• PHANTOM OF THE OPTION
• THE PROMISED LAND
• BORN AGAIN
• THE ARMCHAIR BOOKMAKER
• VOLATILITY PROFILES

The Options Edge: Winning the Volatility Game with Options On Futures By William R. Gallacher pdf