New York Traders Workshop bundle with Bonus

Trading Options at Expiration Strategies and Models for Winning the Endgame By Jeff Augen

Trading Options at Expiration: Strategies and Models for Winning the Endgame By Jeff Augen
Publisher: FT Press 2009 | 176 Pages | ISBN: 0135058724 | PDF | 1 MB

 

“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

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, 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.

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.

Why traditional option pricing calculations always break down in the final days before expiration
Three powerful end-of-cycle effects not comprehended by contemporary pricing models
Reducing your risk by reducing your market exposure
Trading only one or two days each month and avoiding overnight exposure
Structuring trades that reflect true expiration-day behavior
Leveraging the surprising power of expiration-day pricing dynamics

About 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.

 

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The Value and Momentum Trader Dynamic Stock Selection Models to Beat the Market

 

 

Grant Henning, "The Value and Momentum Trader: Dynamic Stock Selection Models to Beat the Market"
Wiley | 2009 | ISBN: 0470481730 | 241 pages | PDF | 1,2 MB

A winning approach to stock trading based on proprietary statistical research in Excel

In The Value and Momentum Trader, Grant Henning presents a comprehensive approach to stock trading, which centers around Excel-based research methods he has developed. In this book, Henning presents the trading tools he has used to become a successful trader, and discusses some of the greatest challenges facing active market participants. This reliable resource presents both winning trading systems and all the skills necessary to perform as a trader as market conditions change. It also demonstrates how you can turn the successes and failures of any trading system into an interactive feedback loop to discover one's true trading skills.
Provides a solid understanding of the author's statistical trading system
Explores how to execute optimal trades under different market conditions
Outlines a very affordable Excel-based stock analysis method that is easy to implement
Dr. Henning has proven to be a trusted author with other academic publications in the areas of measurement and statistics.

The Value and Momentum Trader is an essential guide to trading today's dynamic markets.


Summary: Posttives of this book are many but there are puzzles too
Rating: 5

Congratulations are due Grant Henning for clearly explaining his stock selection system and even providing a CD in excel with the formulas in the book. It's not often that any successful trader will show their methodology, with explanations, so clearly. I liked the fact that the final universe of stocks was selected not only for technical but fundamental values too. However, I am puzzled by two tables in the book, 4.1 and 6.4. in table 4.1, three stocks are stated as buy or strong buy. Yet their subsequent three month performance beyond 12/31/2008 was poor. TWRT changed its symbol to BWEN; I could not find a chart for QSC; and DGLY was a better sell than a buy through 3/31/2008. In addition I was puzzled that so many of the other stocks in this table appear to be small cap to the point of being really obscure. (I looked at the three month time frame since the writer states that his usual holding period is a few days to three months.) Maybe he dumped these three stocks quickly? In table 6.4, I followed all stocks and found no significant correlation between buy or strong buy, sell or strong sell, and the subsequent three month performance from mid August 2008 to mid November 2008. The IKN symbol was not found; STAA and ALTH did as predicted but AFAM did not. PARL would have been a strong sell, not strong buy. I would be interested in seeing a better correlation between the extensive mechanics of the ranking system and the subsequent performance. At least looking at these two tables, there does not seem to be a good correlation of prediction to performance. I am interested in the two market timing indicators and would be interested to see if other researchers have confirmed the correlation between the VIX and the put call ratio, to the subsequent performance of the S&P 500.

 

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Technical Analysis of Stock Trends 9th Edition

 

 

Review

“With a focus on pragmatic portfolio theory, editor Charles Bassetti significantly contributes t the technical analysis body of knowledge especially related to tactics, and has created a book worth a space on every technican’s bookshelf.”

-Technically Speaking (Market Technicians Association monthly newsletter)

 

"...worth a space on every technican’s bookshelf.”

-Technically Speaking (Market Technicians Association monthly newsletter), May 2007

 

Product Description

Technical Analysis of Stock Trends was the first book to produce a methodology for interpreting the predictable behavior of investors and markets. It revolutionized technical investment approaches and showed traders and investors how to make money regardless of what the market is doing. Now in its ninth edition, the book remains the benchmark by which all other investment methodologies are measured. An indispensable reference for technical traders, investors, and finance professionals, the ninth edition features:

* Expanded treatment of Magee’s "basing points" procedure
* In-depth discussion and dissection of Dow Theory
* Extensive new material on commodity trading
* Much-needed perspective on short-term and futures trading

The newest incarnation of one of the true classics of market analysis, this book will be a crucial resource for both seasoned veterans and the new generation alike.