Option trading trade volatility strategies and techniques by euan sinclair


This book gives an unyielding trader's perspective on options trading, from the basics of option pricing to the finer points of risk management. I highly recommend it as the best book of its kind on the market. This is not a theoretical account of what the author thinks markets ought to do, nor does it promise trading ideas so good you can ignore risk management, hedging, position repair, and other basic professional skills.

It merely explains how professionals turn real ideas into real money. Sinclair is a professional options trader and emphasizes that making profits among intelligent competitive traders requires techniques and processes that must lead to a definable, tractable, and executable edge. His most useful contribution to a field crowded with poor treatments is his insistence on not oversimplifying or waving away the option trading process because it takes accuracy, work, and thought.

Yet Sinclair's clarity and technical mastery give focus where previous authors have wallowed in obscurantism to camouflage ignorance and lack of practical experience.

Sinclair's Option Trading is the finest work on the subject available and makes all previous treatments obsolete. He specializes in the design and implementation of quantitative trading strategies. Sinclair is option trading trade volatility strategies and techniques by euan sinclair 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. The Role of Mathematics. The Structure of this Book. Chapter 2 Introduction to Options. Specifications for an Option Contract. American Options Compared to European Options. Absolute Maximum and Minimum Values.

Choice of Dependent Variables. Forecasting and Strategy Selection. Defining and Measuring Volatility. The Implied Volatility Option trading trade volatility strategies and techniques by euan sinclair. Parameterizing and Measuring the Implied Volatility Curve. Chapter 9 General Principles of Trading and Hedging. Trade Sizing and Leverage. Trading Based on Order-Book Information. Chapter 11 Volatility Trading. Exercising the Wrong Options. Irrelevance of the Greeks. Expiring at a Short Strike. Example of Position Repair.

Dividends and Buy-in Risk. The Early Exercise of Options. Pricing and Volatility Strategies and Techniques.