Trading Option Greeks PDF- Dan Passarelli (How Time, Volatility, and Other Pricing Factors Drive Profit) explains a new methodology for option trading and valuation. With an introduction to option basics as well as chapters on all types of spreads, put-call parity and synthetic options, trading volatility and studying volatility charts, and advanced option trading, Trading Option Greeks holds pertinent new information on how more accurate pricing can drive profit.
Author: Dan Passarelli
Free download link: At the end of the post
Veteran options trader Dan Passarelli explains a new methodology for option trading and valuation. With an introduction to option basics as well as chapters on all types of spreads, put-call parity and synthetic options, trading volatility and studying volatility charts, and advanced option trading, Trading Option Greeks holds pertinent new information on how more accurate pricing can drive profit.
Most options traders focus on strategies such as covered calls, vertical spreads, butterflies and condors, and so on. But traders often don’t know how to use the “greeks”—the five factors that influence an option’s price—to trade more effectively.
The “greeks” (Delta, Gamma, Theta, Vega, Rho) are tools to measure minute changes in an option’s price based on corresponding changes in:
- Interest rates
- Time to expiration
- Price changes in the underlying security
Using the greeks can lead to more accurate pricing information that will alert an option trader to mispriced derivatives that can be exploited for profit. In straightforward language and making use of charts and examples, Passarelli explains how to use the greeks to be a better options trader.
Table of Contents- Trading Option Greeks PDF
Foreword (William J. Brodsky).
Part I The Basics of Option Greeks.
1 The Basics.
2 Greek Philosophy.
3 Understanding Volatility.
4 Option-Specific Risk and Opportunity.
5 An Introduction to Volatility-Selling Strategies.
6 Put-Call Parity and Synthetics.
8 Dividends and Option Pricing.
Part II Spreads.
9 Vertical Spreads.
10 Wing Spreads: Condors and Butterflies.
11 Calendar and Diagonal Spreads.
Part III Volatility.
12 Delta-Neutral Trading: Trading Implied Volatility.
13 Delta-Neutral Trading: Trading Realized Volatility.
14 Studying Volatility Charts.
Part IV Advanced Option Trading.
15 Straddles and Strangles.
16 Complex Spreads.
17 The Trader’s Thought Process.
“A must-read for individuals who are serious about trading options.”
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.”
Founder, Hamzei Analytics, LLC
Perfect for getting to the next level- “After starting to trade options I got burned on some bad decisions. Typical of starting out but what really killed me was not accounting for/understanding Theta. The “intro” book I read didn’t cover this. Trading Option Greeks is perfect in that it’s easy enough to follow but comprehensive enough to cover the Greeks…integral to options. Looking back I now see how option trading without understanding these concepts was foolish. This book covers some complex concepts which sometimes meant reading sections twice. This said, it’s worth every penny. Just buy this book.”- Christopher
About the author
Dan Passarelliis the author of the book Trading Option Greeks and founder of Market Taker Mentoring LLC. Market Taker Mentoring is an options education company that provides personalized one-on-one mentoring for option traders. The company website is www.MarketTaker.com.
Dan started his option trading career on the floor of the Chicago Board Options Exchange (CBOE) as an equity options market maker. He also traded agricultural options and futures on the floor of the Chicago Board of Trade (CBOT). In 2005, Dan joined CBOE’s Options Institute and began teaching both basic and advanced option trading concepts to retail traders, brokers, institutional traders, financial planners and advisors, money managers, employees of the Federal Reserve Bank, and market makers. In addition to his work with CBOE, Dan taught option trading strategies at the Options Industry Council (OIC). Dan has written numerous articles in the financial press. Dan can be followed on Twitter at www.twitter.com/Dan_Passarelli.
He began his career as a floor trader at the Chicago Board Options Exchange (CBOE), trading equity options and later agricultural options and futures on the floor of the Chicago Board of Trade (CBOT). He currently provides options education to retail and institutional traders at a premier brokerage firm. Passarelli was an instructor at the Options Institute, which is the educational arm of the CBOE. He also worked with the Options Industry Council (OIC), educating retail traders via podcasts, webcasts, live seminars, and has written numerous published articles.
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