Option Volatility & Pricing: Advanced Trading Strategies and Techniques

by Sheldon Natenberg

Book Overview

WHAT EVERY OPTION TRADER NEEDS TO KNOW. THE ONE BOOK EVERY TRADER SHOULD OWN.The bestselling Option Volatility & Pricing has made Sheldon Natenberg a widely recognized authority in the option... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 155738486X
• ISBN13: 9781557384867
• Release Date: August 1994
• Publisher: McGraw-Hill
• Length: 470 Pages
• Weight: 1.81 lbs.
• Dimensions: 1.3" x 6.4" x 9.3"

Customer Reviews

Amazing service, not so good book

Congratulations for the delivery service! It was realy very fast, good! Book in very good conditions , like new. The only problem was the book content, I didn't like. Too simple. It's like an introduction for a begginer level student.

This book is absolutely awesome

I hesitated writing a review for this book because I didn't want people to be drawn to it and therefore increase their understanding of options trading. However it looks like alot of other people already have written there review so I'll add my two cents worth. The first time I read this book I didnt understand it and therefore I didnt like it. Fast forward a few years later with a wider understanding of options trading - I read the book again and was blown away by it. This is the best book written on options trading I have ever read. It explains more than just options strategies or the definition of different popular pricing models, it explains the basis of what goes into developing a theoritical option pricing model. It shows you the logic behind what every credible option pricing model attempts to do. I know now why I've been losing money. I've never read any other book that explains option pricing as simple and clearly as this book does and believe me, I've read alot of books. Other books I have read on option pricing are either too simplistic that many questions still linger or so complex that only someone with a heavy math background could understand it. Natenbergs book is just perfect. As I've implied earlier, you need to already have a solid knowledge of options terminology and mechanics but given that you have that, this book will take you to the next level. My hope is that most people would be too intimidated to read this book or a book like this so they never reach that next level. (Sounds mean, I know. Sorry!!!) Most of all I like books that give me new ideas and make me think. This book does just that. I've never been the type to just trust in software or blind calculations. I've always been the type to person needing to know what goes on under the hood. Because Natenberg discusses the mechanics of pricing an option in a clear and understandable way, and because probability and volatility calculators today are cheap and even free, I have been emboldend to experiment with different pricing ideas for both options and its underlying.

Another book the CBOE should force all traders to read!

If you trade options, you will quickly learn that it is essential to understand the concept of volatility. Natenberg explains the concept of volatility in great detail, and shows how this concept applies to different option positions.Natenberg not only takes great pains to explain the concept of volatility, in addition to other inputs into an option pricing model, but clearly shows that option pricing isn't the exact science many seem to believe, for the simple reason that we never know if our volatility estimate is correct. I suspect many traders just don't understand the severe limitations current models have in different situations (ie. how the Black-Scholes model underprices options near expiration). For the mathematically inclined, there are ample formulas and equations in the appendix. Read it, study it, and apply the concepts to develop your own trading system.

Great book for prospective traders

With the popularity rise in options and option strategies, I must admit this is a great book to get started with. I am a clerk at the CBOE and have studied this book thoroughly, and in my experience it's the best options tutorial out there. I have also sampled the John Hull book and the official Options Institute book. The writing is very readable and it does not bog you down with overly complex derivations of each formula (there is an appendix that does derive and explain the details of the Black and Scholes model though.)If you're serious about trading I highly recommend reading this book first - it'll be a useful tool. Working at CBOE I have seen many other clerks studying their Natenberg books during the slower times. Learning arb (hand signaling) and understanding what you are arbing are the keys for a successful options trader. This can be useful for someone just getting started in options as well or with prior experience.

The Classic, Essential Options Text

I have been a professional options trader for over 11 years. In my experience most options traders fail, and for two reasons: naive faith in mathematical models and software, and a basic misunderstanding of the concept of impled volatility.This is the one book that everyone who has worked for me has been required to read: it is ESSENTIAL. There is no other book that covers these topics in the the way that market practitioners think about them, nor does Natenberg forget to include anything that's really useful. I have to agreed with another reviewer: understand and study this book! Options trading is a zero-sum game. Professional traders have the edge and been earning a good living from the ill-prepared, arrogant, and naive for years.