Trading Options at Expiration: Strategies and Models for Winning the Endgame (paperback)

Overview

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 ...

See more details below
Other sellers (Paperback)
  • All (6) from $21.12   
  • New (5) from $20.88   
  • Used (1) from $34.98   
Trading Options at Expiration: Strategies and Models for Winning the Endgame

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK 7.0
  • Samsung Galaxy Tab 4 NOOK 10.1
  • NOOK HD Tablet
  • NOOK HD+ Tablet
  • NOOK eReaders
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac

Want a NOOK? Explore Now

NOOK Book (eBook)
$19.49
BN.com price
(Save 44%)$34.99 List Price

Overview

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

Read More Show Less

Product Details

  • ISBN-13: 9780133409031
  • Publisher: FT Press
  • Publication date: 2/22/2013
  • Edition number: 1
  • Pages: 176
  • Sales rank: 955,043
  • Product dimensions: 5.40 (w) x 7.90 (h) x 0.50 (d)

Meet the Author

Jeff Augen, currently a private investor and writer, has spent over a decade building a unique intellectual property portfolio of databases, algorithms, and associated software for technical analysis of derivatives prices. His work, which includes more than a million lines of computer code, is particularly focused on the identification of subtle anomalies and price distortions.

Augen has a 25-year history in information technology. As a cofounding executive of IBM’s Life Sciences Computing business, he defined a growth strategy that resulted in $1.2 billion of new revenue and managed a large portfolio of venture capital investments. From 2002 to 2005, Augen was President and CEO of TurboWorx Inc., a technical computing software company founded by the chairman of the Department of Computer Science at Yale University. He is the author of three previous books: The Option Trader’s Workbook (FT Press 2008), The Volatility Edge in Options Trading (FT Press 2008) and Bioinformatics in the Post-Genomic Era (Addison-Wesley 2005).

Much of his current work on option pricing is built around algorithms for predicting molecular structures that he developed many years ago as a graduate student in biochemistry.

Read More Show Less

Table of Contents

Introduction and Explanatory Notes 1

Chapter 1: Expiration Pricing Dynamics 13

Chapter 2: Working with Statistical Models 55

Chapter 3: Day Trading Strategies 105

Appendix 1: Excel VBA Program for Counting Strike Price Crosses 143

Index 149

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously
Sort by: Showing 1 – 20 of 13 Customer Reviews
  • Posted June 8, 2010

    more from this reviewer

    Expert analysis of option trading

    Investors commonly use pricing models and formulas to determine the fair value of call options to buy stock and put options to sell stock. But formulaic fair value does not account for all the pricing dynamics that affect options near their expiration dates. That is why the price of an expiring option often diverges from its fair value. This pattern of distorted pricing creates trading opportunities in the options market that are less risky and potentially more rewarding than holding the underlying stock over the long term. Jeff Augen's compact, focused book details strategies for trading options on the third Thursday and Friday of each month, before the options expire that Saturday. He cautions that investors must be aware of collateral funding needs, regulatory requirements, investment minimums and other sophisticated details. Because Augen assumes that the reader has substantial background knowledge, professional traders may have the most to gain from his mathematically rigorous insights. getAbstract, which recommends books, but not investments (the opinions in the summary are those of the author), also suggests this book to amateur investors who are familiar with options and seek the next level of professional information.

    To learn more about this book, check out the following web page: https://www.getabstract.com/summary/12241/trading-options-at-expiration.html

    2 out of 3 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted January 15, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 3, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 12, 2010

    No text was provided for this review.

  • Anonymous

    Posted November 14, 2009

    No text was provided for this review.

  • Anonymous

    Posted December 5, 2009

    No text was provided for this review.

  • Anonymous

    Posted February 24, 2011

    No text was provided for this review.

  • Anonymous

    Posted December 17, 2009

    No text was provided for this review.

  • Anonymous

    Posted December 28, 2009

    No text was provided for this review.

  • Anonymous

    Posted January 2, 2010

    No text was provided for this review.

  • Anonymous

    Posted April 17, 2010

    No text was provided for this review.

  • Anonymous

    Posted December 11, 2009

    No text was provided for this review.

  • Anonymous

    Posted October 18, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 20, 2010

    No text was provided for this review.

  • Anonymous

    Posted October 7, 2010

    No text was provided for this review.

  • Anonymous

    Posted April 8, 2011

    No text was provided for this review.

  • Anonymous

    Posted December 31, 2009

    No text was provided for this review.

  • Anonymous

    Posted January 10, 2010

    No text was provided for this review.

  • Anonymous

    Posted February 5, 2011

    No text was provided for this review.

  • Anonymous

    Posted January 22, 2010

    No text was provided for this review.

Sort by: Showing 1 – 20 of 13 Customer Reviews

If you find inappropriate content, please report it to Barnes & Noble
Why is this product inappropriate?
Comments (optional)