Tuesday, March 4, 2014

Trading Options At Expiration

Read the book "Trading Options At Expiration" by Jeff Augen.  In this book,  Jeff discussed the three major forces that happens during Expiration day:

  • Implied Volatility collapse
  • Strike Price pinning effects
  • Rapidly accelerating Time Decay
This is a totally new concept for me as it involves trading option on that single day.  That is a Day Trading options.  I am not ready to day trading options.  Making a note here to revisit at later time.

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