Given the success of the first edition of this book, the author updated its content, confirming the consistency of some strategies presented, and added a new strategy developed during the past year.Trading is hard! Volatility trading is even harder! The goal of this book is to deliver a profitable and actionable trade plan to trade in volatility, applying options techniques and proven strategies using VXX ETN due to its high liquidity. This book also intends to pay tribute to first VXX, former volatility ETN, which the author has been trading exclusively in the last few years. The book won't teach you the basics of options trading strategies (verticals or iron condors spreads to name a few). This book will explain in detail and, in a concise language, the author's Trade Plan and how he uses options to trade that ETN. It was written by a trader and is meant to target traders interested in stock options, and the way risk management applies to volatility trading. Nevertheless, you don't need to be an expert in stock options trading and need to possess only basic knowledge.The book starts with key learnings from the author's bad experiences, which are a good starting point. It goes through the understanding of volatility instruments-from VIX futures structure and how they impact strategies to use-the selection of ETNs Exchange-Traded Notes (ETNs), and then move to an actionable options trading plan. There are some strategies to be applied for every market environment (or volatility level) with clear descriptions of how to apply them as well as its management through adjustments and hedging strategies, also using options.Volatility is clearly a new asset class with its own unique specifics that put it in a different level of common equities, equity ETFs, indexes or commodities. Using options to manage risk, the author explains in detail their portfolio of volatility options strategies and how he uses them, with entry, exit points, adjustments, etc., but always with the overall risk portfolio management in mind.This book will focus on trading options on VXX, the most liquid volatility ETN and the first to be launched in the market. This book provides you with proven, precise, and fundamental rules to trade effectively volatility with options. It supports its options strategies with years of backtesting and author experience as a trader. All strategies presented can be applied in conjunction or individually. The usage of each options strategy will depend on market conditions, either with low volatility (under contango) or high volatility (in backwardation).To sum up, the author discloses the options strategies he uses to trade volatility with options on VXX, minimizing trading subjectivity (purely mechanical with clear entry, exit and adjustment points). But before going into detail, he gives you all the background needed to understand what this new asset class is - Volatility.Add this book to your library if you are looking to increase knowledge on volatility trading and/or options trading and how to trade effectively with a clear Trade Plan that is successfully being applied.

This publication aims to fill the void between books providing an introduction to derivatives, and advanced books whose target audience are members of quantitative modelling community. In order to appeal to the widest audience, this publication tries to assume the least amount of prior knowledge. The content quickly moves onto more advanced subjects in order to concentrate on more practical and advanced topics. "A master piece to learn in a nutshell all the essentials about volatility with a practical and lively approach. A must read!" Carole Bernard, Equity Derivatives Specialist at Bloomberg "This book could be seen as the 'volatility bible'!" Markus-Alexander Flesch, Head of Sales & Marketing at Eurex "I highly recommend this book both for those new to the equity derivatives business, and for more advanced readers. The balance between theory and practice is struck At-The-Money" Paul Stephens, Head of Institutional Marketing at CBOE "One of the best resources out there for the volatility community" Paul Britton, CEO and Founder of Capstone Investment Advisors "Colin has managed to convey often complex derivative and volatility concepts with an admirable simplicity, a welcome change from the all-too-dense tomes one usually finds on the subject" Edmund Shing PhD, former Proprietary Trader at BNP Paribas "In a crowded space, Colin has supplied a useful and concise guide" Gary Delany, Director Europe at the Options Industry Council

A leading expert unveils his unique methodology for options trading Options provide a high leverage approach to trading that can significantly limit the overall risk of a trade or provide additional income. Yet, many people fail to capitalize on this potentially lucrative opportunity because they mistakenly believe that options are risky. Now options expert Andrew Keene helps aspiring investors to enter this sector by explaining the principles of the options market and showing readers how to utilize calls and puts successfully. Leading options expert Andrew Keene demystifies the basics of options trading Debunks the myth that call purchases are synonymous with being bullish and that put purchases are bearish Lays out in detail two distinct proprietary trading plans readers can follow Explains how to trade using market maker techniques and tricks from the trading floor to help with his probabilities in options trading Andrew Keene is best known for reading unusual options activity and seeing what others don't. Now he shares what he knows in a book that opens the opportunities of options trading to any investor.

Markets are more volatile than ever. That terrifies many investors, but it shouldn’t terrify you. Smart investors know how to feast on volatility. That’s because they’ve learned proven trading strategies designed specifically to profit from rapid market shifts. In Volatile Markets Made Easy: Trading Stocks and Options for Increased Profits, investing expert Guy Cohen teaches you how to earn big returns by systematically cherry picking the best trades while minimizing risk, and execute a simple trading plan that leverages your profits in volatile markets. "Volatile Markets Made Easy is not just a book; it is a full course of instruction. This is an incredible piece of work." —Ned W. Bennett, CEO/Cofounder, optionsXpress, Inc. "I highly recommend Guy Cohen’s Volatile Markets Made Easy, which introduces to the world his simple approach utilizing flag chart patterns to capitalize on trending stocks. Guy’s combination of clear explanations and lavishly detailed follow-throughs of trade examples cogently demonstrates how to deploy several simple, option-based strategies to make consistent money with one of the most reliable stock chart patterns—while strictly limiting risk with sound money management techniques. Add this one to your shelf." —John Brasher, CallWriter.com

Russell Rhoads is one of America’s leading experts on VIX, the Volatility Index. In The VIX Trader’s Handbook he takes a deep dive into all things associated with volatility indexes and related trading vehicles. The handbook begins with an explanation of what VIX is, how it is calculated, and why it behaves the way it does in various market environments. It also explains the various methods of getting exposure to volatility through listed markets. The focus then moves on to demonstrate how traders take advantage of various scenarios using futures, options, or ETPs linked to the performance of VIX. Finally, a comprehensive review is presented of volatility events that shook the markets, including the 1987 crash, Great Financial Crisis, 2010 flash crash, and the 2020 pandemic. By understanding how VIX behaved leading up to these market shocks, and reacted afterwards, traders can better equip themselves ahead of future events. A wide variety of strategies that are implemented in both bearish and bullish equity markets are introduced and covered extensively throughout. The VIX Trader’s Handbook is essential reading for all those who are intending to trade volatility—from those who wish to gain an understanding of how VIX and the related trading products behave, to those intending to hedge equity exposure or take advantage of the persistent overpricing of option volatility. You won’t want to trade volatility without it.

Equity and index options expire on the third Friday of each month. As that moment approaches, unusual market forces create option price distortions, rarely understood by most investors. These distortions give rise to outstanding trading opportunities with enormous profit potential. In Trading Options at Expiration: Strategies and Models for Winning the Endgame, leading options trader Jeff Augen explores this extraordinary opportunity with never-before published statistical models, minute-by-minute pricing analysis, and optimized trading strategies that regularly deliver returns of 40%-300% per trade. You’ll learn how to structure positions that profit from end-of-contract price distortions with remarkably low risk. These strategies don’t rely on your ability to pick stocks or predict market direction and they only require one or two days of market exposure per month. Augen also discusses: · Three powerful end-of-cycle effects not comprehended by contemporary pricing models · Trading only one or two days each month and avoiding overnight exposure · Leveraging the surprising power of expiration-day pricing dynamics If you’re looking for an innovative new way to reignite your returns no matter where the markets move, you’ve found it in Trading Options at Expiration. “Learn and profit from Jeff Augen’s book: It clearly explains how to take advantage of market inefficiencies in collapsing implied volatility, effects of strike price, and time decay. A must-read for individuals who are options oriented.” --Ralph J. Acampora, CMT, Director of Technical Analysis Studies, New York Institute of Finance “A fantastic, insightful book full of meticulously compiled statistics about anomalies that surround option expiration. Not only does Augen present a set of effective trading strategies to capitalize on these anomalies, he walks through the performance of each across several expirations. His advice is practical and readily applicable: He outlines common pitfalls, gives guidance on timing your executions, and even includes code that can be used to perform the same calculations he does in the text. A thoroughly enjoyable read that will give you a true edge in your option trading.” --Alexis Goldstein, Vice President, Equity Derivatives Business Analyst “Mr. Augen makes a careful and systematic study of option prices at expiration. His translation of price behavior into trading strategy is intriguing work, and the level of detail is impressive.” --Dr. Robert Jennings, Professor of Finance, Indiana University Kelly School of Business “This book fills a gap in the vast amount of literature on derivatives trading and stands out for being extremely well written, clear, concise, and very low on jargon--perfect for traders looking to evolve their equity option strategies.” --Nazzaro Angelini, Principal, Spearpoint Capital “Instead of considering macro-time strategies that take weeks to unfold, Jeff Augen is thinking micro here--hours or days--specifically the days or hours right before expiration, and harnessing grinding, remorseless options decay for profit. He builds a compelling case for the strategy here. The concept of using ratio spreads plus risk management for as brief a period as one day--open to close--to capture expiring premium is worth the price of admission alone. A superb follow-up to his first book. Must-read for the serious options student.” --John A. Sarkett, Option Wizard software

Raise your options investing game to a new level through smart, focused practiceFor decades, Sheldon Natenberg’s Option Volatility & Pricing has been helping investors better understand the complexities of the option market with his clear and comprehensive explanation of trading strategies and risk management.Now, you can raise your performance to a higher level by practicing Natenberg’s methods before you enter the market. Filled with hands-on exercises designed to dramatically increase your knowledge and build your confidence, The Option Volatility and Pricing Workbook provides the necessary tools from which to build a successful options portfolio. Each exercise is preceded by clear description of the principle at hand, and each concludes with in-depth explanations of the correct answers. Hundreds of exercises cover such topics as:•Contract Settlement and Cash Flow•Expiration Profit & Loss•Theoretical Pricing•Volatility•Dynamics of Risk•Synthetic Pricing and Arbitrage•Hedging Strategies•Models and the Real WorldSuccess in option markets requires the ability to adapt to constantly changing market conditions. This ability can only be achieved through a full and intimate understanding of the principles of option evaluation, strategy selection, risk management, and market dynamics. Whether you’re a professional or novice trader, a market maker or training manager—The Option Volatility and Pricing Workbook is an invaluable tool for achieving success in this famously tough market.