“Option Volatility & Pricing” but what’s next!

[rosy2]

with natenberg you have the basics down. you probably won't find more in any book so look at the latest research papers floating around and talk to other traders (that are profitable); ET isn't the place.

 

[IV_Trader]

Quote from rosy2:

with natenberg you have the basics down. you probably won't find more in any book so look at the latest research papers floating around and talk to other traders (that are profitable); ET isn't the place.

some of the old Mav's options posts are probably better that any famous books out there. Same goes for Riskarb's ( in you can understand it) and few others.
Anyway , I personally learned a lot here.

 

[Grant]

FT79,

“open an account and see how things work in reality”. Buy before you try. If you were a broker in the UK and advised a client thus, the FSA will be on you like a ton of bricks.

Learning to trade with your hard-earned cash is not quite the same as learning to ride a bike. You may be able to endure a few minor scrapes but – stretching the metaphor – by your own admission, you are making decisions based on incomplete knowledge of the road ahead. Are you confident in your approach? If so, fine.

Will big losses inspire you to study further? Invest the money in time to study. The markets will wait for you. Why not paper trade supported by options software? There’s loads on the web, some free. Here’s one I found by accident. For $60, it seems quite impressive: http://visual-stock-options.olsoft.qarchive.org/

Likewise, reading material. Again, on the web there is so much – you don’t need to buy another book.

It isn’t about trading index options per se. Options on any instrument share the same characteristics, and are based on the same assumptions and underlying principles (no doubt someone will provide an example that contradicts this).

Grant.

 

[FT79]

Dear Grant,

I appreciate your concern but don't be. I'm not new to the world of trading derivatives. I have been lucky to talk to someone who sells premium for 6-8 years now and is very profitable. My strategy is almost a copy of his. He was very friendly to tell how he approached the market and how he setup his positions.

2nd, I don't believe in paper trading, imho the emotions are not the same. When I started trading futures I have learned that the big way.

 

[FT79]

Quote from IV_Trader:

some of the old Mav's options posts are probably better that any famous books out there. Same goes for Riskarb's ( in you can understand it) and few others.
Anyway , I personally learned a lot here.

Thanks IV_Trader, I will search ET for there posts/threads

 

[spreadn00b]

I do believe in paper trading. I think it should be thought of like back testing. If you can't make money w/ a back tested system, you probably want to try something else. Same with paper trading. If you paper trade a strategy and can't make money, might want to try something else. But just because a system makes money from a back test, or you make money paper trading is certainly NO guarantee that it's going to be true in real trading.

Quote from FT79:


2nd, I don't believe in paper trading, imho the emotions are not the same. When I started trading futures I have learned that the big way.

 

[smilingsynic]

Quote from FT79:

After reading Option Volatility & Pricing of Natenberg (great book btw) I want my knowledge level brought to the next level. Does anyone knows a good book??

I’m especially interested in books about selling premium and managing (adjusting) your position when the underlying moves. I ‘m looking for a book that I can use in real life and not a book simply explaining the strategies. (perhaps with MS excelsheets examples where I can calculate the Delta, Gamma, etc)

I’m thinking of buying “Options, Futures and other derivatives, 6th Edition” of John C. Hull.

Thanks,
FT79

I have the Hull book, which is not particularly helpful about selling vol.

Charles Cottle has a (I think, still) free book online called something like Coulda, Woulda, Shoulda. There is a lot here, including some good war stories.

I'll think of others, providing others haven't already thought of them.

 

[smilingsynic]

Quote from IV_Trader:

some of the old Mav's options posts are probably better that any famous books out there. Same goes for Riskarb's ( in you can understand it) and few others.
Anyway , I personally learned a lot here.

Amen. Riskarb has also in the past contributed to Google's thread on options.

 

[kinggyppo]

Quote from IV_Trader:

some of the old Mav's options posts are probably better that any famous books out there. Same goes for Riskarb's ( in you can understand it) and few others.
Anyway , I personally learned a lot here.

Agreed, amazing stuff!!

 

[yip1997]

Quote from FT79:

After reading Option Volatility & Pricing of Natenberg (great book btw) I want my knowledge level brought to the next level. Does anyone knows a good book??

I’m especially interested in books about selling premium and managing (adjusting) your position when the underlying moves. I ‘m looking for a book that I can use in real life and not a book simply explaining the strategies. (perhaps with MS excelsheets examples where I can calculate the Delta, Gamma, etc)

I’m thinking of buying “Options, Futures and other derivatives, 6th Edition” of John C. Hull.

Thanks,
FT79

I started from Hull's book, and then Natenberg's. Is Hull's book useful? Yes, It helps me a lot. I was also looking for a book for my next level. However, the best one esp for selling premium is Coach's thread.

If you can write programs, write a position simulator and see how the greeks interacts with price, time, etc.

You can also look at www.888options.com for the calculator, and a position simulator.

Mav and Risk are very good but their strategies are not for premium sellers.