Trading Option Greeks How Time Volatility and Other Pricing Factors Drive Profit

Trading Option Greeks How Time Volatility and Other Pricing Factors Drive Profit

“A must-read for individuals who are serious about trading options” — James Bittman, author, Trading Options as a Professional

“Dan’s book is a primer for options aficionados. Without bogging you down with super-heavy math, he walks you through the key principles and shows you what matters the most to your trading portfolio.” — Fari Hamzei, founder, Hamzei Analytics, LLC

User Ratings and Reviews

3 Stars Where’s the beef?
I had hoped for a better guide for investing with options. Some of the basics are covered and many of the more complex option positions are also covered.

The alpha and beta Greeks for the underlying stock aren’t covered although they are important to an options price.

Although the bid-ask spread is mentioned in the introduction, there is no mention of how to get the best price for an option. And, if one goes to more complex option positions the problem becomes compounded.

There isn’t any mention on how to calculate the option Greeks accurately and without that many of the strategies won’t work.

5 Stars Approach to Options
A fantastic book to add to your library of options analysis. Not for beginners, but if you want to understand why option prices change, this is your book. If you want to understand the implications of various positions, this is your book. If you want to understand how to trade volatility, this is your book. The last part sold me on the book. I have become more confident after reading this book.

4 Stars Mostly Readable
Written with the clarity of a practioner with minimal math density though a little excessive use of tabular data (some charts would have been better). My introduction to options was in a very math dense way which leaves you comfortable with geometric brownian motion but unable to act when faced with real time quotes and a rapidly moving market.

Overall a good effort and worth a read for anyone getting serious with trading options. Would highly recommend changing the font and line spacing to avoid eye fatigue in next editions.

5 Stars great book
well written easy to understand for anyone who is interested in options

Author provides with a logical way of looking at options.

Book which every trader should have

3 Stars Its alright
When I bought this book, I was expecting really in-depth analysis of various Greeks and their effects on basic option positions as well as complex spreads. However, I was bit disappointed.

If you have read any decent preliminary option trading books (Natenberg, McMillan et al) or if you have been trading option spreads for say 1+ year, this book would be useless. In aggregate there would be about 10-12 page material which may useful for such people. Last chapter on relationships between implied and realized volatility is OK.

For some reason the author has morbid fear for graphs of positions and greeks. He ends up giving tables after tables to illustrate effect of various greeks on option position.

If you are at a stage where you think I buy call option when I am bullish and I buy put option when I am bearish, this book will help you understand the effects of other equally important variables in pricing and trading, but then there are so many other which give this information in a better fashion in my opinion.

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