Option pricing and volatility advanced trading strategies and techniques
I graduated from University in with a masters in finance. I later started work at the trading desk at an investment bank in London.
My manager told me that option trading is not just knowing your models and understanding the math. He said he started trading just after Sheldon Naternberg published the first edition of this book, and it had been an invaluable resource for him.
The book was now part of the training course that my manager developed for the bank. The book sets the stage in the preface. Sheldon Natenberg states that the text bridges the gap between theoretical pricing models and real world trading, with the needs of the professional trader in mind.
The 2nd edition of the book has 18 chapters plus a few appendices. There are lots of explanatory diagrams, like the one below.
Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition (Professional Finance & Investment): Sheldon Natenberg: qyzofolawory.web.fc2.com: Books
Many of the chapters contain practical advice on buying, selling, shorting and hedging, given a specific set of market conditions and parameters. Chapter 6 offers a particularly satisfying explanation of the Greeks, delta, vega and kappa and how they influence trading decisions. Natenberg lists the most common assumptions in options pricing models, and, in some detail, discusses why those assumptions are wrong.
However, he concludes by remarking that experienced traders, while being fully aware of their deficiencies, still need to understand theoretical models, and use them as appropriate. I would recommend this book to any graduate starting a career in option trading, or to those with more experience under their belts. These are Amazon referral links, but, as always, this has not influenced this review.
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Business Analysis Portfolio Analysis Option Pricing Technical Trading Buy Spreadsheets Commentary. This review was contributed by a professional option trader, and a close friend.
Advanced Trading Strategies and Techniques Many of the chapters contain practical advice on buying, selling, shorting and hedging, given a specific set of market conditions and parameters. Excerpt from Chapter 6 of Option Pricing: Leave a Reply Cancel reply Your email address will not be published.
Option Volatility & Pricing: Advanced Trading Strategies and Techniques - Sheldon Natenberg - Google Livres
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