Thursday, May 26, 2011

Expiring Monthly May 2011 Issue Recap

A quick reminder that the May edition of Expiring Monthly: The Option Traders Journal was published earlier this week and is available for subscribers to download.

This month’s feature article, Understanding Order Flow, Part One: Reading It, is authored by Mark Sebastian and delves into subjects such as the impact of large trades on implied volatility and skew. Mark will be back with part two of this illuminating feature in the June edition.

Another article that breaks new ground and offers more than a few surprises is Jared Woodard’s Why Black-Scholes Is Better Than We Think, which evaluates how robust the Black-Scholes model is in the context of delta hedging.

One of my favorite parts of the magazine is the interview segment. This month Mark Sebastian interviews TradeKing Chairman and CEO Donald Montanaro. Their conversation traces the history of the discount brokerage industry, the role of options in the discount brokerage world, and the evolution from bricks and mortar to online options trading.

In this month’s issue I am responsible for three articles. The one I enjoyed the most I call Cheating with Partial Hedges, which explores the subject of creating custom portfolio hedges which minimizing cost and risk, while maximizing coverage where it matters most. I also was responsible for the monthly Follow That Trade column. This month I follow a silver and gold pairs trade that combines some bottom-fishing characteristics with a short implied volatility flavor. Last but not least, in the Wolf Against the World column I square off with Mark Wolfinger (whose New Options Trader column is a great resource for those who are new to trading options) to debate the merits of using technical analysis in trading options. My argument relies heavily on the use of TA for position management and exits.

In keeping with tradition, I have reproduced a copy of the Table of Contents for the May issue below for those who may be interested in learning more about the magazine. Thanks to all who have already subscribed. For those who are interested in subscription information and additional details about the magazine, you can find all that and more at (the newly redesigned) http://www.expiringmonthly.com/.
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[source: Expiring Monthly]

Disclosure(s):
I am one of the founders and owners of Expiring Monthly
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