Book description
A 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.
The idea behind Options Math for Traders + Website is to help
retail option traders understand some of the basic tenants and
enduring relationships of options, and option math, that professional
and institutional traders rely on every day. This book skillfully
highlights those strategies that are inherently superior from an
option math point of view and explains what drives that superiority
while also examining why some strategies are inherently inferior.
The material is explained without complex equations or technical
jargon. The goal is to give you a solid conceptual foundation of
options behavior so you can make more informed decisions when choosing
an option strategy for your market outlook. Topics covered include the
volatility premium, because over time, options will cost more than
they are ultimately worth; skew, wherein far out of the money put
options may seem cheap from an absolute term, but are very expensive
in relative terms; and the acceleration in option price erosion. The
book also has a companion Website, which includes links to those sites
that can scan for the best strategies discussed in the book.
- Explains, in a non-technical manner, the mathematical properties
of options so that traders can better select the right options
strategy for their market outlook
- Companion Website contains timely tools that allow you to
continue to learn in a hands-on fashion long after closing the book
- Written by top options expert Scott Nations
Most independent traders have an imperfect understanding of the math
behind options pricing. With Options Math for Traders + Website
as your guide, you'll gain valuable lessons in this area and discover
how this information can improve your trading performance.
SCOTT NATIONS is President and CIO of NationsShares, a division
of Fortress Trading, Inc. Previously, he was head trader for Sovereign
Capital, a proprietary trading firm, and a floor trader at both the
Chicago Board of Trade and the Chicago Mercantile Exchange. Nations is
also a financial engineer, creating, testing, patenting, and licensing
a number of sophisticated option-based and option-enhanced products
including the Nations Enhanced Covered Call Index; the Nations
Enhanced Collar Index; the Nations Option Levered Index; and the
Nations VolDex. He appears on CNBC several times each week and serves
as one of the regular panelists on CNBC's weekly Options Action show.
