Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames (Hardcover)

by Jeff Augen (Author)

Stock prices have lost all relationship to the underlying performance of the companies they represent: investors who relied on traditional "buy and hold" strategies have been savaged by the greatest destruction of wealth in the history of the world. But some options traders are earning immense profits right now, even in this generation's worst market and they'll keep profiting no matter how the market moves. How? They trade at very specific times and structure trades to capitalize on well-characterized pricing anomalies and distortions. By doing so, they can generate more profit in one day than most experienced investors realize in a month, sometimes even a year. What's more, they systematically minimize exposure to market risk, including potentially disastrous after-hour market moves. In Day Trading Options, top options trader Jeff Augen shows exactly how you can use these strategies, too. You'll learn why day trading options is more practical than ever, and understand trends in the options market that have leveled the playing field between large institutions and private traders. Augen reveals how to choose candidates for day trading; use new technical indicators that work; spot mispriced options; exploit rapid changes in implied volatility, and much more. Above all, you'll learn how to structure positions that close profitably before the end of trading, so end the day wealthier and more secure than you were in the morning.

From the Back Cover
Today's equity markets have become a gambling casino where stock prices are often unrelated to the underlying performance of the companies they represent. The result has been the greatest destruction of wealth in history, and long-term investors have been the victims. At the same time, the environment for short-term technical trading has come to be dominated by computerized algorithmic trading systems. Technical traders must now compete with supercomputers that process millions of data items each second and make investment decisions at the individual "tick" level. These systems have completely invalidated many approaches to technical analysis and charting that worked well just a couple of years ago. But many options traders continue to profit in this environment. They enter and exit the market at very specific times with trades that are structured to capitalize on well-characterized pricing anomalies and distortions. Many of these approaches generate more profit in a single month than most investors achieve in an entire year. In Day Trading Options, top options trader Jeff Augen shows exactly how you can use these strategies to generate outstanding profits with minimal risk. You'll learn new approaches to evaluating option prices by comparing overnight, intraday, and traditional measures of volatility. At the same time, Augen introduces a new charting technique that can be used to spot the beginning and end of a short term trend--often as brief as a few minutes. You'll discover how this approach can be used to trade planned events and financial news. These new strategies and approaches will help you adapt to the new investing world and allow you to trade profitably regardless of the market's direction.