Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits (Bloomberg Financial Book 159)

brilliant book, excellent, why the 4 stars ??? i read like 5 books about options, not a single one of them has a chapter about liquidity, not one, yes i know volume and open interest that's it, no, that's not it, how about more information from such a knowledgeable trader, what to expect in so many different scenarios, news announcements, earnings and a long etccc. Liquidity is critical to options trading.

I am still reading this book and I find this a very useful book. This book is for intermediate level to advanced level option students and professionals. CBOE website has lot of info on option greeks (all free in webcasts section, where one can download presentation and also go through the webinar). This is the book that shows the details of option strategies and brings it together. Author gives examples of what one is buying or selling based on option greeks (selling theta, buying vega). This book complements with other books and texts that I have. In order to implement and/or see what author is suggesting one certainly needs an option calculator or website (most brokers give this).The following resources will help (no particular order or preference). Bottom line, need a option calculator with greeks, list of options strategies and adjustments one can make and see the P/L.1. Jabbour (option trading handbook), great book, that gives details of all adjustments without greeks. I have the first edition. Second edition is out, I do not have it.2. Most important spreadsheet is from optiontradingtips.com (awesome to see the plot of profit / loss and play with it) to make new trades or adjustments. Easy to play with. This along with CBOE webinar's explaining expiry profit/loss table that you can hand calculate in 5 minutes will show the exact strategy. Or use the spreadsheet and see all the greeks and P/L. One can add a stock (short or long) in the spreadsheet and what happens. The author of this spreadsheet is generous to give this free spreadsheet.3. John Hull's book on Options for MBA/Finance and CFA students (textbook, I have an old edition that is good enough), chapter 14 (and solutions are free) on Option sensitivities and Option hedging is excellent. This chapter is pretty much what Trading Option Greeks author (Dan Passarelli) is talking or alluding to. Author Dan's approach is good with lots of examples and practical from a professional trader point of view.4. Finally get both books from Dr Samir Elias (Generate Thousands and explosive stock trading) to see how to blend technical analysis with Option strategies.(note: I am not a related party to any of these folks)I feel the author could add lot more examples in future editions.

Great book!! I graduated with a degree in Mechanical Engineering. All those math classes: calculus I, II & II and Differential Equations really helped me understand the material. This is not an easy book to read, this requires time, effort and patience. I treated this like a text book, which it really is. Some parts you are going to have to re-read several times to understand what is going on. This is for the serious investor who wants to up their game to the next level. I love it. This helps separates the women from the girls.

Learning to trade options has definitely been a challenge. When I first started, I would get panicky because I could not tell why I was losing money. Dan Passarelli's book on the option greeks helped take the mystery out of it for me as well as helped me learn how to better manage my trades. My first trading coach would have us measure our risk based only on absolute risk, ie if the value of our trade went to zero. But think about it: how many trades have you lost money on because the value of your call, put, or spread went to zero? Probably very few. Nearly all of my losses have been because of day-to-day, incremental risk, and this is what the greeks help us measure. Learning about the greeks is helping me improve my results immensely, and this book has been a huge part of that. Here is a snap shot of some of the things I've learned that have helped me use the greeks to better manage my trades:- Why I make or lose money because of delta and how to use delta to determine when to take profits or cut bait- How to calculate a new delta based on gamma- How to use vega to predict if my trade will make or lose money based on a rise or fall in volatility- Why sometimes it's important to impose a time stop due to theta eroding the value of a long position- The importance of measuring your entire position in regards to each of the greeks (because the greeks are cumulative)As a former market maker, Passarelli used the greeks every day in his trading, and while he takes the time to explain concepts as advanced as gamma scalping, he also breaks things down in simple terms with real-life examples, especially at the beginning. So while there is plenty in here for the advanced trader, novice traders will also find value and have an excellent guide they can use as they grow as traders.This book has a prominent place in my trading library. Passarelli's other book Market Taker's Edge is also a great book and may be easier to digest for those who are brand new to trading. I highly recommend both.

IMHO, this book is really suitable for inexperience investor, who is new to the world of options. I place this book between "hello world" and "3 months after trading for money from your account". Definitely, it is not really an ABC, but gives good and detailed view on one of the most important aspects of option trading.On top of that, author shares bits of his personal experience, and THAT is valuable. His insight from market maker perspective is worth of buying the entire book, to my mind.Overall, the book has captured a place in my library and I strongly recommend to have this as a reference text and nice reading.Congrats to the author on beautiful piece of work he delivered.

Livro excelente. Com pouquíssimo uso de equações matemáticas complexas, o autor consegue passar um bom nível de conhecimento sobre as gregas e operações com opções. Vale muita a pena.

Ich als fortgeschrittener Optionstrader habe mir aus diesem Buch weiterführende Infos erhofft. Leider stellte ich fest, dass ich alles, was in diesem Buch steht, schon irgendwo mal hier, mal dort gelesen habe. Aus diesem Grund ist dieses Buch in erster Linie für Anfänger interessant oder für Anfänger, welche die ersten Schritte hinter sich gelassen haben. Diese dürften jedoch vollends auf ihre Kosten kommen, daher gebe ich dem Buch 5 Sterne.

informative

tells a lot about optios

中級～上級者向け。プション取引の基礎知識がない初心者にとっては読み進めるのが難しい本。ギリシャ指標と損益の関係について詳細に解説している本は稀有なので重宝すべき1冊。株式投資の買い持ち（Long）ポジションの代替として「Call買い」を仕掛けるオプション取引の初心者は多い。しかし、問題は、どの権利行使価格（OTM, ATM, ITM）を選択するかである。異なるギリシャ指標を示して、それぞれのメリット＆ディメリットを解説してくれる（CHAPTER4）。実際の取引において、ストップオーダー（ロスカットポイント）を置くべき「株価」を算出するための計算式（Change in option price ÷ Greeks = Change in stock price）を「プレミアム（オプション価格）」と「ギリシャ指標」を用いて説明してくれる箇所は必読ポイント。実際のトレーディングで役立つことだろう（CHAPTER5）。割高なIVのときに、オプションを売るチャンスが生まれるが、問題となるのは、どのくらい離れたOTMの権利行使価格を選択するかである。現在の株価、IV水準、残存日数の関係から、1標準偏差（68%の確率）で収まるターゲットとなる権利行使価格を導き出す方法を説明してくれる（CHAPTER10）。IVが割高なのか、割安なのか、を判断するには、ボラティリティ・チャートを読み解く必要があるのだが、IVとHVとの9つの関係をチャート（具体例）を示して解説してくれる。ボラティリティ・チャートを読み解く方法を教えてくれる書籍はほとんどないので、参考にしたい（CHAPTER14）。その他のCHAPTERでは、様々なオプション戦略において、ギリシャ指標が損益にどう関係するかが詳細に解説されている。取引を時系列で追いながら、ギリシャ指標の変化と損益の変化が理解できる流れである。書籍のタイトルの通り、オプションを取引するとは、ギリシャ指標を取引することである。ギリシャ指標について学ばずに、オプション取引の成功はありえない。