Options Trading Strategies for Expiration Day
Special thank you to Christopher Aiello for his insight into the market yesterday. His analysis was well thought out and very correct.
Today I’m going to refer you to a new trading book which is original in thought and covers in-depth an area that I’ve only seen a small amount of information.
The book is Trading Options at Expiration by Jeff Augen. What Augen does is teach options strategies, some backed by quantitative analysis, to trade options on options expiration day. As he states in the book, successful options expiration day traders can make between 30% to 300% for the day using some fairly simple concepts that occur when options expire.
What intrigues me most about the book is :
1. It’s original.
2. I saw nothing in the book that wasn’t logical.
3. I worked with a trader at DLJ back in the early 90’s who used to make substantial profits many options expiration days (he also lost a lot too but, as far as I could tell his pluses far outweighed his losses).
4. Also, is it possible to apply our high probability strategies which coincide on the options expiration day and overlay them onto Augen’s work? It’s something I’ll be looking at in the near future.
I’ll have our editor-in-chief David Penn reach out to Jeff Augen and see if he can spend some time with us being interviewed by TradingMarkets. It’s nice to see original work and I’m sure most of us can learn from him. Also you can order his book through Amazon.com.
This is from Larry Connors Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.