Tuesday, May 12, 2009

Another Winner from Jeff Augen

While I never got around to a formal review, I did give Jeff Augen’s The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets a Best New Volatility Book award in the VIX and More 2008 Volatility Awards. I thought that book did an excellent job in providing new insights in how to trade the earnings cycle and the options expiration cycle.

I recently had the chance to read Augen’s latest book, Trading Options at Expiration: Strategies and Models for Winning the Endgame and once again had a very favorable reaction. This time around Augen focuses almost entirely on the last two days of the options expiration cycle and offers up some interesting ideas and trading strategies to take advantage of anomalies in time decay and implied volatility.

Augen’s new book does not have the heft of the original, but the focus is one of the book’s strengths.

If you are like me, you probably find the last two days of the options expiration cycle to be among the most difficult periods to trade. After reading Trading Options at Expiration, I guarantee (and how many guarantees are there in the investing world?) that you will look at the end of options expiration week differently and see more opportunities than pitfalls.

With three days until the end of the current options expiration cycle, now is as good a time as any to start evaluating some new strategic approaches.

6 comments:

Doug said...

I read the book a couple of weeks ago, have pages and pages of notes.

Tonight's homework is to break those notes down to a trading plan for later in the week.

Anonymous said...

Is it your view that you should read Volatility Edge before reading his Expiration book? Obviously Volatility Edge covers most of the Expiration material but in a less focused way.

Anonymous said...

Hello. Facebook takes a [url=http://www.onlinecasinos.gd]online craps[/url] take a chance on 888 casino grapple with: Facebook is expanding its efforts to oneself understood speed up real-money gaming to millions of British users after announcing a order with the online gambling found search for 888 Holdings.And Bye.

Anonymous said...

Hello. Facebook takes a [url=http://www.freecasinogames.gd]slots[/url] wager invest in on 888 casino transport: Facebook is expanding its efforts to institute real-money gaming to millions of British users after announcing a act with the online gambling hard 888 Holdings.And Bye.

Anonymous said...

In a recent webinar, Augen stated he no longer trades those strategy (read: they don't work). This makes me wonder what else he publishes that does not work. Caveat emptor!

Anonymous said...

Yes. Especially the trading options at expiration he has said numerous times that they do not work anymore. However, he still does similar using ratio spreads instead of backspread ratios. The Options Volatility Book still work IMO and re-read it every so often.

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2013 Bill Luby. All rights reserved.
 
Web Analytics