That is a "book" that is often given away free by many websites. It's mainly a vehicle for promoting the Essex Trading Company software. At about 50 pages long, large print and small form factor, it contains nothing revolutionary and also makes some assertions that are highly debatable. As mentioned earlier, published authors are not necessarily any better or more knowledgeable. Indeed, some information in print on this topic is dangerously misleading IMO. MoMoney.
This author is also a staff writer for Optionetics. Jay Kaeppel Staff Writer and Trading Strategist Optionetics.com ~ Your Options Education Site Here is his latest article on that site: http://www.optionetics.com/articles/article_full.asp?idNo=15370
Hi MM, Are there any good sites/ books for plotting charts of the underlying's price/index vs the option's implied volatility? Your (or anyone's) feedback would be appreciated. TIA.
IV has more to do with potential for movement than actual resultant movement. So if you don't want to experience a drop in IV, don't buy options right before earnings unless you've absolutely considered you'll have a drop in premium after the results, even if the stock doesn't move. Rather than a numerical perspective, its important to consider the psychological view. Wouldn't you as an options seller want more return for your bet in the even of higher risk that your sale will result in losses? This is purely what runs the show.
TOS has a new program that charges .95/no.. tkt chg (20contracts min) and no cancellation fees. Love the platform..ex Harris/Brownco/E-trade (for 10 minutes) user
I've heard you can call or email them and ask for better rates (like no ticket charge on 10 or more contracts), but I haven't tried. BTW they only charge one ticket for multileg trades.
you mean, 'whatchu talking about willis?' maybe my language isn't clear. I'm only saying IV often dissipates with news just coming out, regardless of the underlying's response (up, neutral, or down). Of course, IV sharply rises often following sharp moves, but thats a whole different issue. And the last paragraph just explains justification for premiums going up from the point of view of options sellers (as their risk is higher if known big news is pending at a soon date).