Volatility Trading – Euan Sinclair

Volatility Trading by Euan Sinclair Description

Sinclair gives a mathematical technique for assessing volatility in order to get an advantage in everyday option trading activities in this second edition of this best-selling book. He walks traders through the fundamentals of option pricing, volatility measurement, hedging, money management, and trade assessment in an easy-to-understand manner. This revised version includes additional chapters on the dynamics of realized and implied volatility, trading the variance premium, and trading unique scenarios in stock markets using options.

• Volatility models abound, as do entirely new option trades for quant traders.
• Euan Sinclair, an options trader, specializes in the development and execution of quantitative trading methods.

Sinclair has expanded his focus in this Second Edition to include treatment of the numerous new options available in VIX futures, ETNs, and leveraged ETFs, in response to key developments in the markets since the first edition. In addition, he:

• Examines the advantages and disadvantages of a variety of historical volatility metrics.
• Clearly demonstrates how volatility operates in the real world and how it connects to underlying asset performance.
• Outlines ways for projecting volatility during the life of a transaction; provides proven procedures for deciding when and how much to hedge; and provides tactics for aggregating holdings to lessen the need to hedge.
• Shares invaluable advice on how to increase profits through trade size, including tactics derived from futures trading and professional gambling.
• Gives you strong tools for assessing the ongoing performance of your trading activities.
• Updates you on the most recent research on cognitive and emotional biases that impact trading choices, as well as how to use them to your advantage.
• Outlines time-tested trading tactics for VIX futures, ETNs, and leveraged ETFs.
• Access to a companion website with useful spreadsheets, models for estimating volatility cones across various time periods, and simulation engines.