The Volatility Effect: Trade Options Like a Professional by Harnessing the Forces That Determine Option Prices

One of the industry's top options educators shares his insights on volatility The Volatility Effect thoroughly explains how the volatility of a stock influences the price of an option and how you can take advantage of volatility to make better trades. In this book, veteran options trader and educator Ron Ianieri explains various concepts in volatility, including: the four types of volatility; methods to calculate and forecast volatility; volatility "smiles" and "tilts"; and how volatility impacts other mathematical components of options. Ianieri also takes the time to show how applying knowledge about volatility can help your option trading ability. * Focuses on the single most misunderstood aspect of options-the effect of volatility on prices * Shows how you can take advantage of volatility to make better trades * Explains the impact of volatility on basic puts and calls and on more advanced options spread strategies Armed with the information in this book, you'll be able to exploit fluctuations in volatility and make more profitable trading decisions.