The Mathematics of Options [electronic resource] : Quantifying Derivative Price, Payoff, Probability, and Risk /
Thomsett, Michael C.author.
This book is written for the experienced portfolio manager and professional options traders. It is a practical guide offering how to apply options math in a trading world that demands mathematical measurement.  Every options trader deals with an array of calculations: beginners learn to identify risks and opportunities using a short list of strategies, while researchers and academics turn to advanced technical manuals. However, almost no books exist for the experienced portfolio managers and professional options traders who fall between these extremes. Michael C. Thomsett addresses this glaring gap with The Mathematics of Options, a practical guide with actionable tools for the practical application of options math in a world that demands quantification. It serves as a valuable reference for advanced methods of evaluating issues of pricing, payoff, probability, and risk. In his characteristic approachable style, Thomsett simplifies complex hot button issues-such as strategic payoffs, return calculations, and hedging options-that may be mentioned in introductory texts but are often underserved. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.
Includes bibliographical references and index.
Introduction: The Variability of Derivatives Trading Chapter1 Trading Goals and Objectives -- Chapter2 The Role of Fundamental and Technical Analysis -- Chapter3 Pricing of the Option -- Chapter 4 The Dividend Effect -- Chapter5 Return Calculations -- Chapter6 Strategic Payoff: The Conservative Hedge -- Chapter7 Strategic Payoff: Spreads -- Chapter8 Strategic Payoff: Saddles -- Chapter9 Probability and Risk -- Chapter10 Option Pricing Models -- Chapter11 Alternatives to Pricing Models.-.
This book is written for the experienced portfolio manager and professional options traders. It is a practical guide offering how to apply options math in a trading world that demands mathematical measurement.  Every options trader deals with an array of calculations: beginners learn to identify risks and opportunities using a short list of strategies, while researchers and academics turn to advanced technical manuals. However, almost no books exist for the experienced portfolio managers and professional options traders who fall between these extremes. Michael C. Thomsett addresses this glaring gap with The Mathematics of Options, a practical guide with actionable tools for the practical application of options math in a world that demands quantification. It serves as a valuable reference for advanced methods of evaluating issues of pricing, payoff, probability, and risk. In his characteristic approachable style, Thomsett simplifies complex hot button issues-such as strategic payoffs, return calculations, and hedging options-that may be mentioned in introductory texts but are often underserved. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.
Risk management.
Financial engineering.
Risk Management.
Financial Engineering.