Product Information
For any trader who truly wants to understand the incredible nuances and possibilities of options and options trading, the mathematics cannot be avoided. Many of the better options books assume too much knowledge of the underlying math, while the introductory options books tend to shy away from the math in favor of simple introductory concepts. The Mathematics of Options Trading equips traders with the math skills necessary to understand all the technical aspects of options trading. Strongly focused on the mathematics of options, the book gives traders the know-how to analyze the profit/loss profile of intended trades and to determine the expected results of any potential trade before committing any capital. There are four major attributes of any option trade: expected results, mathematical advantage, return per trade, and probability of profit. The Mathematics of Options Trading follows a process to discover these attributes for any given option trade. First, the author teaches the math needed to understand options and how they work. This math is then applied in a new way to determine expected results based on statistics and probability (i.e., what are the odds? ). The author provides specific formulas and step-by-step instructions to determine these expected results. Finally, the author shows how to monitor and manage the trade once it is made. The book provides specific and detailed step-by-step information on how the key calculations are made. Through these calculations, the author shows how to combine trade result possibilities with the probabilities of each possible result: - how to calculate expected results of many option strategies, thus giving the trader a better than even chance to have winning trades - how to calculate historical and implied volatility - how to determine the optimal size for one or multiple outcomes A CD accompanying the book contains computer programs for analyzing opportunities for trading options using numerous different strategies. This software will help the trader screen out unprofitable trades while focusing on trades with the greatest chance of success. The software also enables the reader to customize his or her own programs or spreadsheets. By concentrating on the math and combining probability with possible outcomes to obtain expected results, traders now have significant opportunities for reducing risk and taking advantage of favorable odds.Product Identifiers
PublisherMcgraw-Hill Education
ISBN-139780071445283
eBay Product ID (ePID)88433182
Product Key Features
Number of Pages416 Pages
Publication NameThe Mathematics of Options Trading
LanguageEnglish
SubjectFinance
Publication Year2005
TypeTextbook
AuthorC.B. Reehl
FormatHardcover
Dimensions
Item Height236 mm
Item Weight680 g
Additional Product Features
Country/Region of ManufactureUnited States
Title_AuthorC.B. Reehl