Option Volatility & Pricing: Advanced Trading Strategies and Techniques

Option Volatility & Pricing: Advanced Trading Strategies and Techniques | Sheldon Natenberg | Very highly recommended

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Option Volatility ...

	Option Volatility & Pricing: Advanced Trading Strategies and Techniques Sheldon Natenberg McGraw-Hill, 1994 - 470 pages average customer review:based on 61 reviews view larger image
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highly recommended

One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to reflect the most current developments and trends in option products and trading strategies.

Featuring:

Pricing models Volatility considerations Basic and advanced trading strategies Risk management techniques And more!

Written in a clear, easy-to-understand fashion, Option Volatility & Pricing points out the key concepts essential to successful trading. Drawing on his experience as a professional trader, author Sheldon Natenberg examines both the theory and reality of option trading. He presents the foundations of option theory explaining how this theory can be used to identify and exploit trading opportunities. Option Volatility & Pricing teaches you to use a wide variety of trading strategies and shows you how to select the strategy that best fits your view of market conditions and individual risk tolerance.

New sections include:

Expanded coverage of stock option Strategies for stock index futures and options A broader, more in-depth discussion volatility Analysis of volatility skews Intermarket spreading with options

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Extremely useful book.

I have read this book very quickly. Very easy, friendly and informative. A lot of useful information which can be applied practically.

Very highly recommended

My favorite options trading text, bar none! I believe if you understand everything presented here you will have a huge leg up.

This book gave me the insight and confidence to take the other side of covered call writers' positions and profitably trade the out-of-the-money calls from a purely volatility standpoint.

It also put me on the path of trading volatility around events like earnings releases and FOMC meetings. Read this before embarking on any options trading ventures. Even though you may not choose to trade volatility directly, understanding its dynamics in relation to option prices will be of huge benefit.

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Must read for any options trader, beginner, intermediate or advanced. Must have in personal library.

One must keep in mind that book was written in early 1980s, and still one of the best works on options trading. Whether you are a beginner, intermediate or seasoned options trader, it certainly worth reading; even the seasoned options trader will learn few things and certainly help organize your thoughts. I like this book and still refer to it every now and then in my trading activities.

Required Reading But A Little Dry

I think this book is a must for those who've only ever covered Hull or Wilmott material (me at the point I read this). This book goes a step further and introduces you to practical information for someone who's considering a career trading options (or working in an option trading environment like me).

The major weakness with the book is that at times it's difficult to follow and the book is poorly set out (i.e. paragraphing and writing is too condensed on the page). A common theme throughout the book is that Natenberg will discuss the results from a graph or table in the middle of a page and to see the table/graph you have to turn the page. To make matters worse some of the tables have way too much information and/or are actually printed in landscape making it very cumbersome to view.

Despite its flaws it's a must read for anyone looking to take it a step further from Hull and/or Wilmott. The best aspect of this book is that it gives you an insight into the relationship between the greeks as well as how certain parameters influence each of the greeks.

The book has a lot of Option Trading 101's in it and is a good quick reference as you begin to learn about the wonderful world of options beyond the "risk-neutral" world.

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