Book description
Veteran options trader Dan Passarelli explains a new methodology for
option trading and valuation. With an introduction to option basics as
well as chapters on all types of spreads, put-call parity and synthetic
options, trading volatility and studying volatility charts, and advanced
option trading,
Trading Option Greeks
holds pertinent new information on how more accurate pricing can drive
profit.
Most options traders focus on strategies such as covered
calls, vertical spreads, butterflies and condors, and so on. But
traders often don't know how to use the "greeks"-the five
factors that influence an option's price-to trade more effectively.
The "greeks" (Delta, Gamma, Theta, Vega, Rho) are tools to
measure minute changes in an option's price based on corresponding
changes in:
- Interest rates
- Time to expiration
- Price changes in the underlying security
- Volatility
- Dividends
Using the greeks can lead to more accurate pricing information that
will alert an option trader to mispriced derivatives that can be
exploited for profit. In straightforward language and making use of
charts and examples, Passarelli explains how to use the greeks to be a
better options trader.
Dan Passarelli began his career as a floor trader
at the Chicago Board Options Exchange (CBOE), trading equity options
and later agricultural options and futures on the floor of the Chicago
Board of Trade (CBOT). He currently provides options education to
retail and institutional traders at a premier brokerage firm.
Passarelli was an instructor at the Options Institute, which is the
educational arm of the CBOE. He also worked with the Options Industry
Council (OIC), educating retail traders via podcasts, webcasts, live
seminars, and has written numerous published articles.
