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.


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.

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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.

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