Description
Book SynopsisA practical guide to the math behind options and how that knowledge can improve your trading performance No book on options can guarantee success, but if a trader understands and utilizes option math effectively, good things are going to happen.
Trade Review"Options Math for Traders + Website: How to Pick the Best Option Strategies for Your Market Outlook by Scott Nations is an excellent educational tool for the investor wishing to utilize options in their investment strategies. Options Math for Traders guides you and helps you understand the thought process when evaluating and analyzing risk and reward on an options trade". —
Dax Rodriguez,
President, Livevol, Inc.Table of ContentsPreface ix
Acknowledgments xvii
Part One The Basics
Chapter 1 The Basics 3
Chapter 2 Direction, Magnitude, and Time 17
Chapter 3 Volatility 25
Chapter 4 Option Pricing Models and Implied Volatility 37
Part Two The Phenomena
Chapter 5 The Volatility Risk Premium 51
Chapter 6 Implied Volatility and Skew 63
Chapter 7 Time Value and Decay 77
Chapter 8 The Bid/Ask Spread 87
Chapter 9 Volatility Slope 105
Part Three The Trades
Chapter 10 Covered Calls 115
Chapter 11 Selling Puts 151
Chapter 12 Calendar Spreads 171
Chapter 13 Risk Reversal 197
Chapter 14 Vertical Spreads 217
Appendix 235
Index 243
