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.
- 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 options
- Strategies for stock index futures and options
- A broader, more in-depth discussion of volatility
- Analysis of volatility skews
- Inter-market spreading with options
This updated new edition also tells you how to identify mispriced options and construct volatility and "delta neutral" spreads used by the pros. Although their forecasts are not guarantees, implied volatility and the Greeks may provide experienced traders a way to estimate option changes due to market factors. Using a non-technical trading approach, Natenberg leads the reader into the real world of option trading and applies his well-developed pricing and volatility theories into practical, tradable strategies.Option strategies entail risk and are not appropriate for everyone. Before trading options, you should review Characteristics and Risks of Standardized Options. Some option strategies involve multiple positions simultaneously. These multi-leg strategies incur additional commissions and may invoke special treatment when preparing your taxes. If you are unsure about how a particular strategy may impact your financial picture, please consult a tax professional before trading.