O'Reilly logo

Volatile Markets Made Easy: Trading Stocks and Options for Increased Profits by Guy Cohen

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 8The Science of Volatility

I always try to keep things simple and explain things with pictures where possible. The aim of this chapter is to explain more about the mechanisms behind option pricing and how they might affect you as a trader. Frankly it would take an entire book to explain all the different methodologies, which are evolving all the time, but we certainly cover the essentials here.

The overall goal is to improve your trading performance, not make you a math egghead.

Options play a significant role in the financial markets, particularly during times of instability and increased market volatility. This is because they can be used by investors to hedge their positions in a highly leveraged fashion. Hedging risk is another way ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required