Option market making trading and risk analysis
Ihr Warenkorb ist leer. A guide to the intricacies of professional option market-making and its role in option trading, speculation and risk management. Covey Kartonierter Einband K Beschreibung A guide to the intricacies of professional option market-making and its role in option trading, speculation and risk management.
The author covers option pricing and volatility, risk analysis and the strategies and tactics of the option trader. Klappentext Insightful look at options market makers; how they view the markets, spot opportunities, control risks. Zusammenfassung Approaches trading from the viewpoint of market makers and the part they play in pricing, valuing and placing positions.
Covers option volatility and pricing, risk analysis, spreads, strategies and tactics for the options trader, focusing on how to work successfully with market makers. Inhalt Economics of Option Market Making.
Synthetic Option Market Making. Observations from the Floor. References and Suggested Reading. Option Market Making Untertitel: The Billion greenback Mistake is an up-close account of the career-defining error that many of the world's so much remarkable billionaire traders have made, and a revealing examine what we will be able to study from them.
Extra resources for Option Market Making: In assuming long-term risk exposure in the option market, market makers must be careful to understand exactly what these risks are. Options are highly leveraged instruments that do not always move in value dollar for dollar exactly corresponding to a futures or cash asset price change. The values of options characteristically shrink or explode at rapidly changing and sometimes greater rates than the underlying instrument. Options tend to decline in value over time all else being equal , but option prices can also increase dramatically even without any time passing or change in futures price at all.
A market maker is a trader of options or any other liquid financial asset who is willing and ready at any time to buy at a bid price or sell at an offer price whatever is being traded. Market makers may also be known as dealers, especially in the securities, bond and currency over-the-counter markets, and sometimes as scalpers, when both the buy and sell sides of the trade are expected to be completed within a very short time.
In being forced to hold long-term carryover positions in options, and thereby in being exposed to some long-term complex investment risks, market makers may lose in carryover positions what they make in liquidity function profits. By Allen Jan Baird Methods buying and selling from the perspective of industry makers and the half they play in pricing, valuing and putting positions.
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