Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames

“As a veteran reader of some 500+ trading and investing books and having interviewed hundreds of authors, I never take the approach that you can believe what you read or hear about how to make money in the market, so I try their theory, system, or ideas. Jeff Augen’s book lays down clear guidelines to his intraday options strategy that I can report were profitable in the style I trade.”
--Vincent M. Rowe, President, Online Trading Academy, Texas

“Augen’s book breaks new ground with an indispensable and unique approach to evaluating option prices in different time frames. It also presents a new charting technique for evaluating very short-term trends lasting just a few minutes–a valuable technique for anyone who follows intraday markets. The statistical analysis and associated discussions around high-frequency trading are especially relevant in the modern financial world, which has come to be dominated by supercomputers and algorithmic trading. No serious stock or option trader should be without this book.”
--Sean Sztern, Alternative Strategies Group, Desjardins Securities, Montreal, Quebec

“Jeff Augen’s work on day trading options pulls the curtain back and reveals insights from the world of very short-term options trading. In doing so, he reveals insights beneficial even for the longer-term option trader. Specifically, Chapter 3 on trading volatility distortions introduces the idea of 3-D implied volatility surfaces. Far from being too advanced, this chapter addresses complex volatility issues in plain English that every option trader can understand. I wholly recommend this book.”
--Steve Lentz, DiscoverOptions


Minimize Your Exposure to Market Risk and Increase Profits by Trading in Very Brief Time Frames

In today’s turbulent markets, traditional trading strategies have failed to provide protection from the rapid and violent changes that have swung the Dow down 330 points one day, up 280 points the next, and down 250 points at the open on the next. Fundamental analysis based on company performance and financial predictions has proven meaningless. Technical traders must now compete with institutional trading programs utilizing supercomputers that analyze and execute trades in millisecond time frames. So, how can a private investor compete in this environment?

In Day Trading Options, expert option trader Jeff Augen shows you how to continue to profit even in these chaotic times. You’ll learn to structure short-term trades that exploit well characterized price distortions and anomalies. You’ll discover a breakthrough technique for utilizing volatility to identify the beginning and end of short-lived trends. And, you’ll gain the knowledge to use this innovative technique to take advantage of financial news and planned events, rather than being at their mercy.

Abandon outdated trading strategies and conventional “wisdom”
Minimize your exposure to market risk and increase your profits by trading in very brief time frames and structuring positions that are direction neutral
Understand why your once-reliable technical analysis and charting techniques are failing
Explore new statistical evidence to discern how new advances in institutional program trading affect the private investor
Discover new models for analyzing volatility in different time frames
Learn to evaluate option prices by comparing overnight, intraday, and traditional measures of volatility
Learn to identify and exploit short-lived volatility changes
Use a newly defined charting technique to correctly time trades by identifying the beginning and end of short-term trends

MODEL FACE. the only thing that bugs me about this picture is that damn hair-tie around my wrist. my day is packed, i don't have time for much besides a simple shot by the window. good lighting :) it was chilly, you can see the hair standing up on my wrist because i had goosebumps. i would trade anything to just have the sun back :( cold weather honestly depresses me. i hope you all have the best saturday of your LIVES. the most stressful week of my life is coming up and today i'm trying to just forget about everything for a bit and enjoy myself.

Yup....offically the best mail day ever! A Petite Wanderling and a Euto Trash Helmet.....not sure it gets much better. Thank you to Jenny and Jen for the awesome trades....I am so lucky to have met so many wonderful blythe friends I don't think I will be able to pry the ET helmet off Pippa's head though...I think since they arrived together she has staked a claim to it. And...she needed a proper Brittish name, being from London and all....so Pippa it is :-) ok....off to dance shamelessly about the house some more!

Electronic trading has exploded into the investment world. This text features interviews with active traders, starting with a chapter detailing the success and interest in electronic trading. The authors own insights on into how to be successful are also discussed.

The literati of the day-trader universe, George West and Mark Friedfertig helped to popularize day trading with their bestseller, The Electronic Day Trader. Their second book, Electronic Day Trader's Secrets, written with Jonathan Burton, is a collection of interviews with 13 successful day traders. Whereas their previous book looked at the mechanics of day trading, this book considers the people who trade. And what's most striking about the traders interviewed is not their various trading philosophies, but what they have in common: male gender (young men--half under 30); similar backgrounds (most were either brokers or floor traders before they became day traders); the stocks they trade (NASDAQ high flyers: Intel, Cisco, Amazon.com, Yahoo, Dell); the money they lost when they started (lots--Eric Fromen is typical: he lost $53,000 in his first six months of trading); and their current success (why else would they be interviewed?).
With chestnuts such as "Flexibility is a key to successful day trading" and "Controlling your losses is key to not digging yourself into a hole," the book may ring hollow to those seasoned in the art of speculation (consider Edwin Lefevre's classic Reminiscences of a Stock Operator, instead). But if you're looking for a major course correction to your current day-trading tack, you should find useful guidance here.
However, those uninitiated to day trading should watch for sandbars. This book dangles the possibility of lucrative careers for successful day traders, which for many is simply an oxymoron: matching wits with Wall Street's best (not to mention these guys) can be the quickest way to the poorhouse. But if you fit the profile above, have money to burn, want a fast and exciting career, or are just simply curious, Electronic Day Trader's Secrets is a tantalizing glimpse into what interviewee Jim Shaw describes as "the church of what's happening now." --Harry C. Edwards