Vertical Option Spreads

Beschreibung

Praise for Vertical Option Spreads "An interesting read and practical how-to manual on harnessing the power of probability trading." -Jerry Kensok, CFP(r), President/Portfolio Manager, Lewis & Clark Fund Advisers, LLC "Conrick and Hanson break new ground in applying Monte Carlo simulation techniques to the field of options trading. We're thrilled that Crystal Ball is featured prominently throughout the book as a way for traders to make sound decisions based solely on probability and without regard to market direction. I trust that the ideas and methods put forth in this book will become part of your good fortune." -Eric Wainwright, Chief Architect, Crystal Ball Software Division, Oracle "As a CPA and informed investor, I, like the authors, attempted a few investing techniques including use of technical indicators and fundamental financial analysis. My preferred approach was that of an intermediate term investor (weeks to months), and my results were inconsistent. The alternative approach detailed in this book offers a possible solution. The reliance on probabilities helps compensate for the various personal biases investors confront. Combining the rich data analysis with short (weekly) exposure windows presents an intriguing opportunity to manage risk. The power of this approach is further unlocked for each trader by allowing customization of risk tolerance for each trade as the situation merits." -Joe Hanson, commercial banking officer
Make trades on vertical options spreads with the precision of a laser beam Vertical Options Spreads is a combination of a bona-fide academic research-based study and a complete method to trade credit and debit spreads, along with other complex option combination trades such as iron condors and butterflies. Here, the author has accumulated five years of daily data on the ETF, SPY and provided historical evidence of actual win rates at specific multiples of entry points, both in time and price level. For example, traders will be able to use the weekly options, pick a level of risk and return desired, learn how to place the trade, and then discover the actual percent return that the trade would have yielded. This must-have resource includes the basics of option trading and contains references to many excellent works by other authors that explore more about the intricacies of option mechanics and trading. It is far more than an analysis of one specific asset, SPY, featuring a study of probability theory and how it has applied to trading over the past five years, including the highly volatile 2007 to 2009 time frame and the more "normal" 2010 to 2012 time period. The book offer a thorough understanding of how price movement, actual volatility, and implied volatility all provide a complex but workable web in which the informed trader can generate excellent returns. However, the trader must have the discipline to act within the confines of probability and the "law" of large numbers refusing to place trades based on gut feelings or hunches. * Offers high-probability based trading that uses the new weekly options * Contains handy interactive worksheets that allow traders to select their own risk/return with precision * Includes a website with daily and weekly information on the estimate of the actual standard deviation points on the price spectrum Vertical Options Spreads offers traders a research-based guide for trading Standard & Poors 500 ETF, SPY using historic and estimated probabilities and returns that will give them an edge in the marketplace.

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Charles Conrick

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