Professional development

This book has taught me about the option market and the different factors which impact volatility and pricing.

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Topics covered

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The Language of Options

Elementary Strategies

Introduction to Theoretical Pricing Models

Volatility

Using an Options Theoretical Value

Option Values and Market Conditions

Introduction to Spreading

Volatility Spreads

Risk Considerations

Bull and Bear Spreads

Option Arbitrage

Early Exercise of American Options

Hedging with Options

Volatility Revisited

Stock Index Futures and Options

Intermarket Spreading

Position Analysis

Models and the Real world

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I enjoyed learning about all the considerations traders must make when trading in the options market and understanding strategies used to minimise risk. I was particularly interested in pricing models such as the Black-Scholes models which takes different parameters and uses an equation to price European options. This links to my interests in data analysis and I plan on implementing this model in a future program I create to analyse Option contracts.

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This book taught me about how different markets would trade with different considerations. A stock trader is mostly trying to predict the direction of a market whereas an options trader is doing that but also has to consider the speed of the market such that they can profit before the option expires. I learnt about external factors with trading such as fees from brokers and the speed of which trades can be done which makes certain theoretical strategies implausible in real life.