{"product_id":"positional-option-trading-9781119583516","title":"Positional Option Trading","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003e\u003cb\u003eIntroduction xi\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTrading as a Process xiii\u003c\/p\u003e \u003cp\u003eSummary xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Options: A Summary 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOption Pricing Models 1\u003c\/p\u003e \u003cp\u003eOption Trading Theory 4\u003c\/p\u003e \u003cp\u003eConclusion 10\u003c\/p\u003e \u003cp\u003eSummary 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Efficient Market Hypothesis and Its Limitations 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Efficient Market Hypothesis 11\u003c\/p\u003e \u003cp\u003eAside: Alpha Decay 15\u003c\/p\u003e \u003cp\u003eBehavioral Finance 16\u003c\/p\u003e \u003cp\u003eHigh-Level Approaches: Technical Analysis and Fundamental Analysis 21\u003c\/p\u003e \u003cp\u003eConclusion 27\u003c\/p\u003e \u003cp\u003eSummary 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Forecasting Volatility 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModel-Driven Forecasting and Situational Forecasting 30\u003c\/p\u003e \u003cp\u003eThe GARCH Family and Trading 33\u003c\/p\u003e \u003cp\u003eImplied Volatility as a Predictor 36\u003c\/p\u003e \u003cp\u003eEnsemble Predictions 36\u003c\/p\u003e \u003cp\u003eConclusion 38\u003c\/p\u003e \u003cp\u003eSummary 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Variance Premium 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAside: The Implied Variance Premium 40\u003c\/p\u003e \u003cp\u003eVariance Premium in Equity Indices 42\u003c\/p\u003e \u003cp\u003eThe Implied Skewness Premium 46\u003c\/p\u003e \u003cp\u003eThe Implied Correlation Premium 47\u003c\/p\u003e \u003cp\u003eCommodities 47\u003c\/p\u003e \u003cp\u003eBonds 49\u003c\/p\u003e \u003cp\u003eThe VIX 50\u003c\/p\u003e \u003cp\u003eCurrencies 50\u003c\/p\u003e \u003cp\u003eEquities 50\u003c\/p\u003e \u003cp\u003eReasons for the Variance Premium 51\u003c\/p\u003e \u003cp\u003eInsurance 52\u003c\/p\u003e \u003cp\u003eJump Risk 52\u003c\/p\u003e \u003cp\u003eTrading Restrictions 52\u003c\/p\u003e \u003cp\u003eMarket-Maker Inventory Risk 52\u003c\/p\u003e \u003cp\u003ePath Dependency of Returns 53\u003c\/p\u003e \u003cp\u003eThe Problem of the Peso Problem 55\u003c\/p\u003e \u003cp\u003eConclusion 56\u003c\/p\u003e \u003cp\u003eSummary 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Finding Trades with Positive Expected Value 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAside: Crowding 57\u003c\/p\u003e \u003cp\u003eTrading Strategies 61\u003c\/p\u003e \u003cp\u003eOptions and Fundamental Factors 63\u003c\/p\u003e \u003cp\u003ePost-Earnings Announcement Drift (PEAD) 68\u003c\/p\u003e \u003cp\u003eConfidence Level Two 71\u003c\/p\u003e \u003cp\u003eThe Overnight Effect 75\u003c\/p\u003e \u003cp\u003eFOMC and Volatility 75\u003c\/p\u003e \u003cp\u003eThe Weekend Effect 77\u003c\/p\u003e \u003cp\u003eVolatility of Volatility Risk Premia 78\u003c\/p\u003e \u003cp\u003eConfidence Level One 80\u003c\/p\u003e \u003cp\u003eEarnings-Induced Reversals 80\u003c\/p\u003e \u003cp\u003ePre-Earnings Announcement Drift 81\u003c\/p\u003e \u003cp\u003eConclusion 82\u003c\/p\u003e \u003cp\u003eSummary 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Volatility Positions 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAside: Adjustment and Position ‘‘Repair’’ 86\u003c\/p\u003e \u003cp\u003eStraddles and Strangles 86\u003c\/p\u003e \u003cp\u003eAside: Delta-Hedged Positions 93\u003c\/p\u003e \u003cp\u003eButterflies and Condors 95\u003c\/p\u003e \u003cp\u003eAside: Broken Wing Butterflies and Condors 99\u003c\/p\u003e \u003cp\u003eCalendar Spread 100\u003c\/p\u003e \u003cp\u003eIncluding Implied Volatility Skew 102\u003c\/p\u003e \u003cp\u003eStrike Choice 104\u003c\/p\u003e \u003cp\u003eChoosing a Hedging Strike 107\u003c\/p\u003e \u003cp\u003eExpiration Choice 109\u003c\/p\u003e \u003cp\u003eConclusion 111\u003c\/p\u003e \u003cp\u003eSummary 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Directional Option Trading 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSubjective Option Pricing 113\u003c\/p\u003e \u003cp\u003eA Theory of Subjective Option Pricing 115\u003c\/p\u003e \u003cp\u003eDistribution of Option Returns: Summary Statistics 118\u003c\/p\u003e \u003cp\u003eStrike Choice 120\u003c\/p\u003e \u003cp\u003eFundamental Considerations 124\u003c\/p\u003e \u003cp\u003eConclusion 124\u003c\/p\u003e \u003cp\u003eSummary 125\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Directional Option Strategy Selection 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong Stock 128\u003c\/p\u003e \u003cp\u003eLong Call 129\u003c\/p\u003e \u003cp\u003eLong Call Spread 130\u003c\/p\u003e \u003cp\u003eShort Put 131\u003c\/p\u003e \u003cp\u003eCovered Calls 131\u003c\/p\u003e \u003cp\u003eComponents of Covered Call Profits 134\u003c\/p\u003e \u003cp\u003eCovered Calls and Fundamentals 136\u003c\/p\u003e \u003cp\u003eShort Put Spread 137\u003c\/p\u003e \u003cp\u003eRisk Reversal 138\u003c\/p\u003e \u003cp\u003eAside: The Risk Reversal as a Skew Trade 141\u003c\/p\u003e \u003cp\u003eRatio Spreads 142\u003c\/p\u003e \u003cp\u003eConclusion 145\u003c\/p\u003e \u003cp\u003eSummary 145\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Trade Sizing 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Kelly Criterion 147\u003c\/p\u003e \u003cp\u003eNon-normal Discrete Outcomes 149\u003c\/p\u003e \u003cp\u003eNon-normal Continuous Outcomes 151\u003c\/p\u003e \u003cp\u003eUncertain Parameters 154\u003c\/p\u003e \u003cp\u003eKelly and Drawdown Control 158\u003c\/p\u003e \u003cp\u003eThe Effect of Stops 161\u003c\/p\u003e \u003cp\u003eConclusion 170\u003c\/p\u003e \u003cp\u003eSummary 170\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Meta Risks 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCurrency Risk 171\u003c\/p\u003e \u003cp\u003eTheft and Fraud 173\u003c\/p\u003e \u003cp\u003eExample One: Baring’s Bank 174\u003c\/p\u003e \u003cp\u003eExample Two: Yasumo Hamanaka, aka ‘‘Mr. Copper’’ 175\u003c\/p\u003e \u003cp\u003eExample Three: Bernie Madoff 176\u003c\/p\u003e \u003cp\u003eIndex Restructuring 177\u003c\/p\u003e \u003cp\u003eArbitrage Counterparty Risk 178\u003c\/p\u003e \u003cp\u003eConclusion 179\u003c\/p\u003e \u003cp\u003eSummary 179\u003c\/p\u003e \u003cp\u003eConclusion 181\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix 1 Traders’ Adjustments to the BSM Assumptions 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Existence of a Single, Constant Interest Rate 183\u003c\/p\u003e \u003cp\u003eThe Stock Pays No Dividends 186\u003c\/p\u003e \u003cp\u003eAbsence of Taxes 186\u003c\/p\u003e \u003cp\u003eThe Ability to Trade and Short the Underlying 187\u003c\/p\u003e \u003cp\u003eNonconstant Volatility 190\u003c\/p\u003e \u003cp\u003eConclusion 192\u003c\/p\u003e \u003cp\u003eSummary 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix 2 Statistical Rules of Thumb 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConverting Range Estimates to Option Pricing Inputs 195\u003c\/p\u003e \u003cp\u003eRule of Five 196\u003c\/p\u003e \u003cp\u003eRule of Three 197\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix 3 Execution 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExample 204\u003c\/p\u003e \u003cp\u003eReferences 207\u003c\/p\u003e \u003cp\u003eIndex 219\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":48866403975511,"sku":"9781119583516","price":45.75,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781119583516.jpg?v=1722278482","url":"https:\/\/bookcurl.com\/products\/positional-option-trading-9781119583516","provider":"Book 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