The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets
by Jeff Augen
A Guide for Readers
This book introduces a charting technique that is designed to help option traders visualize price change behavior. Although the form is new, the underlying mathematics are that of standard option-pricing theory. Many of the charts presented in this book contain a series of bars that measure individual price changes in standard deviations against a sliding window of predetermined length. The exact method for creating these charts is described in the "Profiling Price Change Behavior" section of Chapter 3. All the charts presented were created using standard Microsoft desktop tools and readily available data sources. If you subscribe to a data service and you want to create charts of the same form, you will find that Excel's ...
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