Increasing Alpha with Options
Trading Strategies Using Technical Analysis and Market Indicators
Published on 7. September 2010
Book
Hardback
216 pages
978-1-57660-365-9 (ISBN)
Description
Innovative trading strategies, which combine the use of technical analysis, market indicators, and options
In the new world of investing, money managers must deal with a variety of dynamics, products, analyses, and risk controls. They are also expected to achieve above-benchmark performance and profits, also known as alpha, as well as protect capital in the process. This can be difficult to achieve in today's turbulent market environment, but with Increasing Alpha with Options, author Scott Fullman, the Director of Derivative Investment Strategy for WJB Capital Group, offers some solid solutions.
Written in a straightforward and accessible style, this reliable resource outlines various trading strategies using a combination of technical analysis, market indicators, and options. Along the way, it skillfully details how these analytical techniques can help you capture profits while also protecting positions from adverse market conditions.
* Details the varying elements of technical analysis, from chart type and analysis period to time itself
* Highlights how to build strategies around reversal and continuation patterns, oscillators, and exchange-traded funds
* Reveals how you can exploit small inefficiencies in the options marketplace
Filled with in-depth insights and expert advice, Increasing Alpha with Options will quickly familiarize you with everything from the various elements of technical analysis to leveraging the power of options, and show you how applying these tools and techniques to your trading or investing endeavors can improve overall performance.
In the new world of investing, money managers must deal with a variety of dynamics, products, analyses, and risk controls. They are also expected to achieve above-benchmark performance and profits, also known as alpha, as well as protect capital in the process. This can be difficult to achieve in today's turbulent market environment, but with Increasing Alpha with Options, author Scott Fullman, the Director of Derivative Investment Strategy for WJB Capital Group, offers some solid solutions.
Written in a straightforward and accessible style, this reliable resource outlines various trading strategies using a combination of technical analysis, market indicators, and options. Along the way, it skillfully details how these analytical techniques can help you capture profits while also protecting positions from adverse market conditions.
* Details the varying elements of technical analysis, from chart type and analysis period to time itself
* Highlights how to build strategies around reversal and continuation patterns, oscillators, and exchange-traded funds
* Reveals how you can exploit small inefficiencies in the options marketplace
Filled with in-depth insights and expert advice, Increasing Alpha with Options will quickly familiarize you with everything from the various elements of technical analysis to leveraging the power of options, and show you how applying these tools and techniques to your trading or investing endeavors can improve overall performance.
More details
Person
SCOTT H. FULLMAN is Director, Derivative Investment Strategy, for WJB Capital Group. During his thirty-plus years in financial services, he has created tools and platforms for several firms. He has also served on various exchange and industry committees that have led to improvements and new products. Fullman is a member of the Market Technicians Association, a chartered market technician, and holds numerous FINRA licenses. He has written many articles for industry journals, is quoted frequently in media, and speaks at professional conferences across the United States.
Content
Acknowledgments.
Introduction.
1 Why Technical Analysis?
Bases.
Fundamentals vs. Technicals.
Tops.
2 The Basics of Technical Analysis.
Understanding Chart Types.
Trend Properties.
The Trend Is Your Friend.
Volatile or Negative Markets.
Primary and Secondary Trends.
First Strategy.
Put Hedges.
Implied Volatility.
Seasonal Trends.
Cyclical Trends.
Moves within Moves.
Nontrends.
Understanding the Properties of Trends.
3 Trends and Their Ends.
Elliott Waves and Common Trend Analysis.
Nesting Patterns.
Continuation Patterns.
Continuation or Reversal?
Opposing Reversal Patterns.
4 Building Strategies around Reversal and Continuation Patterns.
Spotting Reversal and Continuation Patterns.
Confi rming Patterns Using Different Time Frames.
Building Pattern-Based Strategies.
More Complex Patterns: The Double Top.
Continuation Patterns.
An Amazon.Com Example.
5 Oscillators.
Oscillator Types.
Stochastic Oscillator.
Commodity Channel Index.
Bollinger Bands.
6 Oscillators and Strategies.
Technical Indicators.
Relative Performance.
Finding the Strongest or Weakest Stocks.
Money Flow and On-Balance Volume.
7 Relative Performance.
Look at the Board.
8 ETF Strategies.
Pairs.
9 Effi cient Pricing--Mostly.
Exploiting Small Pricing Inefficiencies.
10 The Subprime Mortgage Crisis and Options.
Managing Delta.
Delta Relationships of Stocks and Options.
11 The Other Greeks.
Other Products.
Ex-Dividend Trades.
Getting Information from the Exchange Floor.
12 When Conditions Change.
Routine Changes.
The Extremes.
Meet the New Rules.
13 The Changing Environment.
Controlling Risk, Fixing Problems.
Using Global Markets.
14 Using Options to Protect Capital.
What Doesn't Work.
Single Security Hedges.
Collar Hedges for Long Stock Positions.
Other Hedges for Offsetting High Volatility Levels.
Stock Replacement Therapy.
15 Hedging the Broad Portfolio.
Reducing Hedge Costs.
Pairing Up.
Hedging Short Portfolios.
Other Hedge Types.
16 When to Invest, When to Trade.
Investors and Investment Markets.
Trading an Investment Trend.
The Trading Market.
Japanese Candlesticks.
Other Investment and Trading Opportunities.
Upcoming Events.
Mergers and Acquisitions.
17 All About Resources.
Abundance of Resources.
Bloomberg Professional Service.
MetaStock Professional Service.
SuperCharts, Worden Brothers, and Others.
Chart Books.
Scanning Techniques.
Options Resources.
Other Helpful Resources from Bloomberg.
iVolatility.
Resources for Smaller Funds.
Risk and Position Monitoring.
Different Funds, Different Vendors.
Other Information Sources.
Appendix: Information Sources.
Index.
Introduction.
1 Why Technical Analysis?
Bases.
Fundamentals vs. Technicals.
Tops.
2 The Basics of Technical Analysis.
Understanding Chart Types.
Trend Properties.
The Trend Is Your Friend.
Volatile or Negative Markets.
Primary and Secondary Trends.
First Strategy.
Put Hedges.
Implied Volatility.
Seasonal Trends.
Cyclical Trends.
Moves within Moves.
Nontrends.
Understanding the Properties of Trends.
3 Trends and Their Ends.
Elliott Waves and Common Trend Analysis.
Nesting Patterns.
Continuation Patterns.
Continuation or Reversal?
Opposing Reversal Patterns.
4 Building Strategies around Reversal and Continuation Patterns.
Spotting Reversal and Continuation Patterns.
Confi rming Patterns Using Different Time Frames.
Building Pattern-Based Strategies.
More Complex Patterns: The Double Top.
Continuation Patterns.
An Amazon.Com Example.
5 Oscillators.
Oscillator Types.
Stochastic Oscillator.
Commodity Channel Index.
Bollinger Bands.
6 Oscillators and Strategies.
Technical Indicators.
Relative Performance.
Finding the Strongest or Weakest Stocks.
Money Flow and On-Balance Volume.
7 Relative Performance.
Look at the Board.
8 ETF Strategies.
Pairs.
9 Effi cient Pricing--Mostly.
Exploiting Small Pricing Inefficiencies.
10 The Subprime Mortgage Crisis and Options.
Managing Delta.
Delta Relationships of Stocks and Options.
11 The Other Greeks.
Other Products.
Ex-Dividend Trades.
Getting Information from the Exchange Floor.
12 When Conditions Change.
Routine Changes.
The Extremes.
Meet the New Rules.
13 The Changing Environment.
Controlling Risk, Fixing Problems.
Using Global Markets.
14 Using Options to Protect Capital.
What Doesn't Work.
Single Security Hedges.
Collar Hedges for Long Stock Positions.
Other Hedges for Offsetting High Volatility Levels.
Stock Replacement Therapy.
15 Hedging the Broad Portfolio.
Reducing Hedge Costs.
Pairing Up.
Hedging Short Portfolios.
Other Hedge Types.
16 When to Invest, When to Trade.
Investors and Investment Markets.
Trading an Investment Trend.
The Trading Market.
Japanese Candlesticks.
Other Investment and Trading Opportunities.
Upcoming Events.
Mergers and Acquisitions.
17 All About Resources.
Abundance of Resources.
Bloomberg Professional Service.
MetaStock Professional Service.
SuperCharts, Worden Brothers, and Others.
Chart Books.
Scanning Techniques.
Options Resources.
Other Helpful Resources from Bloomberg.
iVolatility.
Resources for Smaller Funds.
Risk and Position Monitoring.
Different Funds, Different Vendors.
Other Information Sources.
Appendix: Information Sources.
Index.