Foreword
The past several years have brought about a resurgence in market volatility and options volume unlike anything that has been seen since the close of the twentieth century. As markets have become more interdependent, interrelated, and international, the U.S. listed option markets have solidified their place as the most liquid and transparent venue for risk management and hedging activities of the world’s largest economy. Technology, competition, innovation, and reliability have become the hallmarks of the industry, and our customer base has benefited tremendously from this ongoing evolution.
However, these advances can be properly tapped only when the users of the product continue to expand their knowledge of the options product and its unique features. Education has always been the driver of growth in our business, and it will be the steward of the next generation of options traders. Dan Passarelli’s new and updated book
Trading Option Greeks
is a necessity for customers and traders alike to ensure that they possess the knowledge to succeed and attain their objectives in the high-speed, highly technical arena that the options market has become.
The retail trader of the past has given way to a new retail trader of the present—one with an increased level of technology, support, capital treatment, and product selection. The impact of the staggering growth in such products as the CBOE Holdings’ VIX options and futures, and the literally dozens of other products tied to it, have made the volatility asset class a new, unique, and permanent pillar of today’s option markets.
Dan’s updated book continues his mission of supporting, preparing, and reinforcing the trader’s understanding of pricing, volatility, market terminology, and strategy, in a way that few other books have been able. Using a perspective forged from years as an options market maker, professional trader, and customer, Dan has once again provided a resource for those who wish to know best how the option markets behave today, and how they are likely to continue to behave in the future. It is important to understand not only what happens in the options space, but also
why
it happens. This book is intended to provide those answers. I wish you all the best in your trading!
William J. Brodsky
Chairman and CEO Chicago Board Options Exchange