In The New Option Secret – Volatility, option master David Caplan reveals how option volatility accurately indicates market tops Ft bottoms and Signals which option strategy is best to use. Also indicates whether options should be bought or sold and recognizing and increasing returns by selling overvalued options.
Author’s Note:
This book is dedicated to all traders who have decided that there is more to trading than just following a moving average, or a television commentator’s view on the market. It is for those who are seeking a “Trading Edge” over the markets; an advantage over others in this most difficult, but also most rewarding of all professions.
This book is not for the trader who has decided that it looks easy to make money in this “game” and by spending very little time, he can just buy a futures contract in his favorite market and place a “stop loss” for protection. In fact, if you are proficient enough to have successfully done this on a regular basis over many years, we would like to have you trade our own money. This is a book for individuals who are willing to spend the extra time and effort necessary to learn methods that can provide a significant advantage in their trading careers. It is for the hands-on, real-time trader who wants to expand and learn, get an “edge” over others, and do the best he can to succeed in his “bottom-line” goal of making money in the markets.
We will borrow philosophies from other seemingly unrelated fields such as martial arts and gambling. However, our intention is not to be philosophical or to be the “Zen of trading.” It is merely provided to give examples of how new ways of looking at things have worked successfully in other areas. Part philosophy, part experience, part statistics, The Option Secret is different from any book you have read in the past in both its innovative approaches and simplifying methods.
We must reemphasize several caveats that we mentioned in the front of this book. First, there is risk of loss in all trading, no matter how attractive these strategies may seem. We have tried to emphasize the best positions to use and most opportune times to trade; however, even in these situations there is no assurance that trading will be successful or profitable.
Second, the statement, “Past performance is not indicative of future results,” suggests that although a particular strategy may have worked in the past, circumstances change, and there are no assurances of similar results in the future. Finally, as you will see in this book, there are significant benefits when selling options, and therefore many of our strategies will involve selling puts and calls. However, anytime a trader has a short position in an option, there is unlimited risk of loss. Although we present our methods for taming this, this potential still exists and must be taken into account by the trader with both psychological and monetary considerations.
Contents:
- Trading Plan and Special Circumstances
- The Option Secret – Using Option Volatility to Take Advantage of Trading Opportunities
- Step No. 1 — Formulating Your Option Trading Plan
- Money Management When Trading Options
- Using Special Circumstances to Improve Your Odds of Success in Trading
- Special Circumstances by Way of Option Skewing; What it is, Why it Exists, and How to Use it.
- Analyzing Your Option Trading Opportunities
- How Option Volatility Determines Which Option Strategy to Use
- Using The Neutral Option Trading Strategy to Trade Like a “Bookie”
- Using “The Free Trade” to Construct a Large Position
- “The Ratio Option Spread” How it Works and Why It’s One of Our Favorite Trades.
- Using “In-The-Money Options” to Take Advantage of Option Price Disparities
- The “Calendar Spread”
- “No-Cost Option Strategy”
- Monitoring Your Positions and Follow-up Strategies
- An Options Overview
- Types of Volatility
- Technical Explanation of the Use of Vega, Delta, and Theta
- Trading Gems and Tidbits
- Special Articles
- Trading Rules and Articles
The New Option Secret - Volatility: The Weapon of the Professional Trader and the Most Important Indicator in Option Trading By David L. Caplan pdf
Reviews
Clear filtersThere are no reviews yet.