{"product_id":"trading-options-greeks-isbn-9781118133163","title":"Trading Options Greeks","description":"\u003cb\u003eA top options trader details a practical approach for pricing and trading options in any market condition\u003c\/b\u003e  \u003cp\u003eThe options market is always changing, and in order to keep up with it you need the greeks—delta, gamma, theta, vega, and rho—which are the best techniques for valuing options and executing trades regardless of market conditions. In the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eTrading Options Greeks\u003c\/i\u003e, veteran options trader Dan Pasarelli puts these tools in perspective by offering fresh insights on option trading and valuation.\u003c\/p\u003e \u003cp\u003eAn essential guide for both professional and aspiring traders, this book explains the greeks in a straightforward and accessible style. It skillfully shows how they can be used to facilitate trading strategies that seek to profit from volatility, time decay, or changes in interest rates. Along the way, it makes use of new charts and examples, and discusses how the proper application of the greeks can lead to more accurate pricing and trading as well as alert you to a range of other opportunities.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eCompletely updated with new material\u003c\/li\u003e \u003cli\u003eInformation on spreads, put-call parity and synthetic options, trading volatility, and advanced option trading is also included\u003c\/li\u003e \u003cli\u003eExplores how to exploit the dynamics of option pricing to improve your trading\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eHaving a comprehensive understanding of the greeks is essential to long-term options trading success. \u003ci\u003eTrading Options Greeks, Second Edition\u003c\/i\u003e shows you how to use the greeks to find better trades, effectively manage them, and ultimately, become more profitable.\u003c\/p\u003e \u003cp\u003eForeword xiii\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I: The Basics of Option Greeks\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Basics 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContractual Rights and Obligations 3\u003c\/p\u003e \u003cp\u003eETFs, Indexes, and HOLDRs 9\u003c\/p\u003e \u003cp\u003eStrategies and At-Expiration Diagrams 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Greek Philosophy 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice vs. Value: How Traders Use Option-Pricing Models 24\u003c\/p\u003e \u003cp\u003eDelta 25\u003c\/p\u003e \u003cp\u003eGamma 32\u003c\/p\u003e \u003cp\u003eTheta 38\u003c\/p\u003e \u003cp\u003eVega 42\u003c\/p\u003e \u003cp\u003eRho 46\u003c\/p\u003e \u003cp\u003eWhere to Find Option Greeks 51\u003c\/p\u003e \u003cp\u003eCaveats with Regard to Online Greeks 52\u003c\/p\u003e \u003cp\u003eThinking Greek 53\u003c\/p\u003e \u003cp\u003eNotes 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Understanding Volatility 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistorical Volatility 55\u003c\/p\u003e \u003cp\u003eImplied Volatility 58\u003c\/p\u003e \u003cp\u003eExpected Volatility 61\u003c\/p\u003e \u003cp\u003eImplied Volatility and Direction 67\u003c\/p\u003e \u003cp\u003eCalculating Volatility Data 68\u003c\/p\u003e \u003cp\u003eVolatility Skew 69\u003c\/p\u003e \u003cp\u003eNote 72\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Option-Specific Risk and Opportunity 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong ATM Call 73\u003c\/p\u003e \u003cp\u003eLong OTM Call 79\u003c\/p\u003e \u003cp\u003eLong ITM Call 83\u003c\/p\u003e \u003cp\u003eLong ATM Put 84\u003c\/p\u003e \u003cp\u003eFinding the Right Risk 89\u003c\/p\u003e \u003cp\u003eIt’s All About Volatility 89\u003c\/p\u003e \u003cp\u003eOptions and the Fair Game 93\u003c\/p\u003e \u003cp\u003eNote 94\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 An Introduction to Volatility-Selling Strategies 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProfit Potential 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Put-Call Parity and Synthetics 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePut-Call Parity Essentials 113\u003c\/p\u003e \u003cp\u003eAmerican-Exercise Options 119\u003c\/p\u003e \u003cp\u003eSynthetic Stock 120\u003c\/p\u003e \u003cp\u003eSynthetic Stock Strategies 124\u003c\/p\u003e \u003cp\u003eTheoretical Value and the Interest Rate 132\u003c\/p\u003e \u003cp\u003eA Call Is a Put 133\u003c\/p\u003e \u003cp\u003eNote 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Rho 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRho and Interest Rates 135\u003c\/p\u003e \u003cp\u003eRho and Time 137\u003c\/p\u003e \u003cp\u003eConsidering Rho When Planning Trades 138\u003c\/p\u003e \u003cp\u003eTrading Rho 142\u003c\/p\u003e \u003cp\u003eNotes 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Dividends and Option Pricing 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDividend Basics 145\u003c\/p\u003e \u003cp\u003eDividends and Option Pricing 147\u003c\/p\u003e \u003cp\u003eDividends and Early Exercise 148\u003c\/p\u003e \u003cp\u003eInputting Dividend Data into the Pricing Model 152\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II: Spreads\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Vertical Spreads 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVertical Spreads 164\u003c\/p\u003e \u003cp\u003eVerticals and Volatility 178\u003c\/p\u003e \u003cp\u003eThe Interrelations of Credit Spreads and Debit Spreads 180\u003c\/p\u003e \u003cp\u003eBuilding a Box 181\u003c\/p\u003e \u003cp\u003eVerticals and Beyond 183\u003c\/p\u003e \u003cp\u003eNote 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Wing Spreads 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCondors and Butterflies 185\u003c\/p\u003e \u003cp\u003eTaking Flight 185\u003c\/p\u003e \u003cp\u003eKeys to Success 194\u003c\/p\u003e \u003cp\u003eGreeks and Wing Spreads 195\u003c\/p\u003e \u003cp\u003eDirectional Butterflies 195\u003c\/p\u003e \u003cp\u003eConstructing Trades to Maximize Profit 198\u003c\/p\u003e \u003cp\u003eThe Retail Trader versus the Pro 205\u003c\/p\u003e \u003cp\u003eNotes 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Calendar and Diagonal Spreads 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCalendar Spreads 209\u003c\/p\u003e \u003cp\u003eTrading Volatility Term Structure 218\u003c\/p\u003e \u003cp\u003eDiagonals 228\u003c\/p\u003e \u003cp\u003eThe Strength of the Calendar 233\u003c\/p\u003e \u003cp\u003eNote 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III: Volatility\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Delta-Neutral Trading: Trading Implied Volatility 237\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDirection Neutral versus Direction Indifferent 237\u003c\/p\u003e \u003cp\u003eDelta Neutral 238\u003c\/p\u003e \u003cp\u003eTrading Implied Volatility 241\u003c\/p\u003e \u003cp\u003eConclusions 247\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Delta-Neutral Trading: Trading Realized Volatility 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGamma Scalping 254\u003c\/p\u003e \u003cp\u003eArt and Science 258\u003c\/p\u003e \u003cp\u003eGamma, Theta, and Volatility 259\u003c\/p\u003e \u003cp\u003eGamma Hedging 259\u003c\/p\u003e \u003cp\u003eSmileys and Frowns 265\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Studying Volatility Charts 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNine Volatility Chart Patterns 269\u003c\/p\u003e \u003cp\u003eNote 282\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV: Advanced Option Trading\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Straddles and Strangles 285\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong Straddle 285\u003c\/p\u003e \u003cp\u003eShort Straddle 293\u003c\/p\u003e \u003cp\u003eSynthetic Straddles 298\u003c\/p\u003e \u003cp\u003eLong Strangle 299\u003c\/p\u003e \u003cp\u003eShort Strangle 302\u003c\/p\u003e \u003cp\u003eNote 306\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Ratio Spreads and Complex Spreads 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRatio Spreads 307\u003c\/p\u003e \u003cp\u003eHow Market Makers Manage Delta-Neutral Positions 316\u003c\/p\u003e \u003cp\u003eTrading Skew 321\u003c\/p\u003e \u003cp\u003eWhen Delta Neutral Isn’t Direction Indifferent 322\u003c\/p\u003e \u003cp\u003eManaging Multiple-Class Risk 323\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Putting the Greeks into Action 325\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTrading Option Greeks 326\u003c\/p\u003e \u003cp\u003eChoosing between Strategies 326\u003c\/p\u003e \u003cp\u003eManaging Trades 329\u003c\/p\u003e \u003cp\u003eThe HAPI: The Hope and Pray Index 329\u003c\/p\u003e \u003cp\u003eAdjusting 330\u003c\/p\u003e \u003cp\u003eAbout the Author 333\u003c\/p\u003e \u003cp\u003eIndex 335\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eDAN PASSARELLI\u003c\/b\u003e \u003cb\u003eis the founder and CEO of Market Taker Mentoring, a leading options education firm that provides personalized, one-on-one mentoring for option traders and online classes. He began his trading career on the floor of the Chicago Board Options Exchange (CBOE) as an equity options market maker and also traded agricultural options and futures on the floor of the Chicago Board of Trade (now part of the CME Group). In 2005, Passarelli joined CBOE's Options Institute and began teaching both basic and advanced trading concepts to retail traders, brokers, institutional traders, financial planners and advisors, money managers, and market makers. He has appeared on FOX Business News and other business television programs and contributes to financial publications such as TheStreet.com, SFO.com, and the CBOE's blog. Passarelli is the author of the first edition of\u003c\/b\u003e \u003cb\u003e\u003ci\u003eTrading Option Greeks\u003c\/i\u003e\u003c\/b\u003e \u003cb\u003eand\u003c\/b\u003e \u003cb\u003e\u003ci\u003eThe Market Taker's Edge\u003c\/i\u003e\u003c\/b\u003e\u003cb\u003e.\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eThe financial markets are dynamic,\u003c\/b\u003e and in order to keep up with them, you need the greeks—delta, gamma, theta, vega, and rho—the best techniques for valuing options and executing trades regardless of market conditions.\u003c\/p\u003e \u003cp\u003eWith extensive experience as a market maker, retail trader, and instructor in this field, nobody understands options better than author Dan Passarelli. And now, with the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eTrading Option Greeks\u003c\/i\u003e, he provides you with the tools you'll need to succeed in the high-speed, highly technical arena that the options market has become.\u003c\/p\u003e \u003cp\u003eWritten to reflect current market conditions, this reliable guide will put you in a better position to effectively navigate today's options market, which includes a host of new products, strategies, and rules. Along the way, it skillfully discusses option Greeks from both a theoretical and practical perspective, and explains how and when to use them.\u003c\/p\u003e \u003cp\u003eDivided into four comprehensive parts, this updated edition outlines a practical approach to the greeks—which measure changes in an option's value—and reinforces a trader's understanding of option pricing, volatility, market terminology, and strategy in a way that few other books can. Topics covered include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eOption-specific risk and opportunity, put-call parity and synthetics, and dividends and option pricing\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eVertical spreads, wing spreads, and calendar and diagonal spreads\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eDelta-neutral trading—including the trading of implied and realized volatility\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eAdvanced option trading issues from straddles and strangles to ratio and complex spreads\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eAnd much more\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWhether you're a professional trader or active individual trader, comprehensive knowledge of the greeks can help you avoid common pitfalls, limit risk, and increase profit potential. Putting the insights found here into practice will put you in a better position to excel at this challenging endeavor.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eTrading Option Greeks\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSecond Edition\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIn option trading, there are an\u003c\/b\u003e infinite number of uses for the \"greeks\" (delta, gamma, theta, vega, and rho), which measure changes in an option's value. From finding trades to managing and adjusting them, the greeks are truly a trader's best resource—but only if you know how to properly apply them.\u003c\/p\u003e \u003cp\u003eNobody understands option greeks better than author Dan Passarelli. And now, with the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eTrading Option Greeks\u003c\/i\u003e, this seasoned options expert provides you with the tools you'll need to effectively implement them in your everyday trading endeavors.\u003c\/p\u003e \u003cp\u003eWritten from Passarelli's unique perspective, traders of all levels can benefit from this reliable guide. Page by page, it skillfully covers some of the most essential elements of this discipline, including various types of spreads, put-call parity and synthetic options, trading volatility, and advanced option trading issues. Along the way, it makes use of new charts and examples, and discusses how the proper application of the greeks can lead to more accurate pricing and trading as well as alert you to a range of other opportunities.\u003c\/p\u003e \u003cp\u003eHaving a comprehensive understanding of the greeks is essential to long-term trading success. This updated edition of \u003ci\u003eTrading Option Greeks\u003c\/i\u003e illustrates how you can apply the concepts contained here to real-world trading scenarios and get the most out of your time in today's dynamic market.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47990402449637,"sku":"NP9781118133163","price":94.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118133163.jpg?v=1761787685","url":"https:\/\/k12savings.com\/products\/trading-options-greeks-isbn-9781118133163","provider":"K12savings","version":"1.0","type":"link"}