The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets
$20.15
The Volatility Edge in Options Trading presents a mathematically grounded framework for analyzing and trading options in unstable and highly dynamic market conditions. Jeff Augen combines option pricing theory, volatility analysis, market structure behavior, and statistical modeling into a practical methodology designed for experienced traders seeking a systematic edge in derivatives markets.
The book focuses heavily on the relationship between implied volatility, historical volatility, market instability, and option pricing inefficiencies. Rather than relying on directional prediction alone, Augen emphasizes identifying statistical distortions, volatility mispricing, put-call parity irregularities, and recurring behavioral patterns associated with earnings cycles, expiration cycles, and liquidity conditions. The framework is built around understanding how options markets behave under stress and how professional traders can structure positions around those dynamics.
A major strength of the work is its integration of quantitative analysis with practical execution. The book explains the Black-Scholes framework, volatility modeling, standard deviation analysis, dynamic position management, and structured option combinations while simultaneously addressing real-world trading frictions such as bid-ask spreads, liquidity shifts, and volatility expansion. Augen repeatedly stresses adaptive trade management and statistical discipline over speculative forecasting.
The later sections expand beyond classical options theory into advanced volatility trading methodologies, earnings-cycle trading, expiration-cycle behavior, hedging structures, and custom analytical infrastructure. The result is a sophisticated institutional-style guide for traders interested in volatility-driven opportunities and quantitatively informed options trading systems.
✅ What You’ll Learn:
- How implied and historical volatility influence option pricing
- The practical application of Black-Scholes and alternative pricing models
- How to identify volatility distortions and pricing inefficiencies
- Techniques for managing complex option positions dynamically
- Methods for trading earnings volatility and expiration cycles
- How to structure spreads, straddles, strangles, and synthetic positions
- The relationship between volatility, liquidity, and market instability
- How put-call parity violations create trading opportunities
- Statistical approaches to evaluating price-change behavior
- How to build analytical and database-driven trading infrastructure
💡 Key Benefits:
- Provides a quantitative framework for professional-level options trading
- Connects pricing theory with real-world market execution
- Enhances understanding of volatility-based trade construction
- Introduces institutional-style analytical methodologies
- Helps traders evaluate and manage risk more systematically
- Offers advanced insights into earnings and expiration-driven market behavior
👤 Who This Book Is For:
- Intermediate to advanced options traders
- Volatility-focused traders and derivatives specialists
- Quantitatively oriented investors and market analysts
- Traders seeking systematic and statistically grounded methodologies
📚 Table of Contents:
- Fundamentals of Option Pricing
- Volatility
- General Considerations
- Managing Basic Option Positions
- Managing Complex Positions
- Trading the Earnings Cycle
- Trading the Expiration Cycle
- Building a Toolset
The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets By Jeff Augen
| Author(s) | |
|---|---|
| Product Type | Ebook |
| Format | |
| Skill Level | Intermediate to Advanced |
| Pages | 299 |
| Publication Year | 2008 |
| Delivery | Instant Download |
12 reviews for The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets
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Emmaline Cross (verified owner) –
Excellent book. Goes really in-depth on options trading. Good insight and relevant examples are common. Definitely a good book for intermediate traders.
Nicholas McPherson (verified owner) –
I was looking for something more in-depth than the introductory text on options. Augen covers the basics of options and shares some of thoughts. None of those insights are anything you could easily incorporate into a model. His last chapter on data mining and infrastructure is useless. For instance, he offers that you should make sure you clean your data. Thanks! He says data mining is important but hardly gives any advice on what to be on the look out for nor particular data mining techniques. He doesn’t even give any recommendations based on the software he uses.
Preston Ross (verified owner) –
Defiantly a unique read that throws up interesting ideas which I will continue to explore. Too many novice books on options, pleased to see a book with some meat.
Fabian Townsend (verified owner) –
Overall I would say that the book is very good, taking a quantitative approach to trading volatility and moreover a data driven approach. On this front, I would say the book excelled. Where I found the book to be very vague was in the data and infrastructure section. I felt the topic was covered very superficially while omitting the detail I was looking for. Having said that, I completely enjoyed the book and feel that it has enhanced my understanding of the this style of trading options.
Kayden Martin (verified owner) –
Good book if you want to go deeper into understanding how options work. However this book is in no way for the beginner options trader
Kristian Sheppard (verified owner) –
An ok book. I should mention one of the strategies doesn’t work. Capturing profit from the rise in options volatility as a stock comes close to earnings announcements is not a workable strategy. I tracked option prices on 20 stocks that demonstrated significant increases in volatility historically when nearing earnings announcements. Not one increased in price as implied volatility predictably rose. Capturing the collapse of options after the announcement by writing strangles does work more times than not, however as the author correctly pointed out…a loss can be catastrophic.
Khloe Foster (verified owner) –
I like the charts and illustrations. This is certainly written for options professionals and not beginner option traders. If you are experience I certainly recommend.
Mila McIntosh (verified owner) –
very very technical, have traded options for years but was still difficult for me to clearly understand. I think only the advanced option trader should tread here
Charley Matthews (verified owner) –
I own everything Jeff Augen ever wrote. The markets never change; yet they are constantly changing. They always come back around, yet they never come back around the same way. If you want to be able to see through, you read Jeff Augen’s stuff. Over and over and over again. It will be valuable a hundred years from now.
Azalea Davenport (verified owner) –
this book should be priced by it’s weight In diamonds, the author is pretty much showing you how to make 100% a month or more, he is mouth feeding you, I read it like 5 times and every time I find another hidden gem, but you need to have a solid basic understanding of options trading, I wonder if I would ever have the pleasure of talking to Mr. AUGEN. This man is putting in your hands years of trial and error for the price of a steak in your average restaurant.
Veda Gray (verified owner) –
Excellent information. Though a little dated now, it still provides enough insight to be useful to intermediate and advanced options traders
Dariel Yates (verified owner) –
Most stock and options books are completely useless, even the classics increasingly don’t apply to the modern algo-driven market. For options students that have moved beyond the basics, this book is packed with great information on volatility and it is definitely worth reading. Yes we all know what a straddle is, but how is it actually used by professional daytraders in the modern market? Unlike the vast majority of option books out there, Mr. Augen actually details a handful of excellent, real-life strategies for volatility trading.
Perfect example of why this book is superior. Holding long options until expiration is often a terrible plan, so why do 95% of option books just assume that’s what you’ll do? However, day/swing traders will appreciate that Mr. Augen is breaking down some complicated multi-leg trades on a day by day basis.
You don’t have to get mired in all the black-scholes discussion if you don’t want to. The book is complicated but well written, readers should have a firm grasp of options basics. All of Mr. Augen’s books make a similar argument, this one is the best, but I’d also recommend his Workbook for those looking to challenge themselves.
For ThinkOrSwim fans, googling “Jeff Augen thinkscript” will turn up code that accurately recreates the volatility studies he uses in the book, so you too can get your strangle on without a math degree.
Strongly recommended.