Keene on the Market: Trade to Win Using Unusual Options Activity, Volatility, and Earnings

CHAPTER 1

Introduction

My name is Andrew Keene. I'm an experienced options trader and consider myself to be an expert at reading unusual options activity and using it to structure winning trades. Ninety-five percent of all the trading calculations I do I perform in my head. When I was trading on the floor, I had equity options and stock positions in over 120 classes, and I always felt very comfortable with that.

I've always said that everyone in this world has at least one thing they are good at, even though they might spend their whole life finding that thing. Fortunately, I found mine early in my career: It turned out to be trading. I am skilled in talking about trading and teaching about equity options and equity options trading. During my career I have traded over 1 million equity options contracts and 50 million shares of stock and made over $7 million. None of this trading was ever done on a firm's position or firm's account; all of the trades have been from my own account and at my own risk.

■ I Love to Trade

To put it simply, I love to trade—the rush, the thrill of winning—but more than that, I love the competition of being better than someone else. I'm an extremely competitive person and have competed in every sport from a Brazilian jiu-jitsu tournament to a triathlon. How could I not want to get up every morning knowing that when I am at work there is no one I can blame for making or losing money but myself? At work, trading options, I am my own boss. When I'm trading ...