Top customer reviews
Beats the learned treatise among the crowd of professional options traders, Natenberg’s ‘Options Volatility and Pricing’, and establishes a new precedent for the definitive text on professional options pricing and trading.
A must-read for all options traders, new and old.
My friends and I were really surprised reading his first book.. “Hey, wait, this trading book doesn’t suck. The author actually has a clue.” He repeats here, but at a more accessible level for most people.
If I were running an options desk, this would be the intro course for every new member. Even it’s asides on non-options markets are better than almost any other book you’ll find.
This is a case where I would have liked to leave a blank rating: I simply don’t know enough to grade competently. My problem with this book is that, with a few exceptions (hedging bands of chapter 11; range-based vol estimation), it could have been written twenty-plus years ago, when Black, Scholes, Merton and Rubinstein had published their papers, and the volatility smile was known but not yet addressed by academics. Academics moved on – have practitioners followed?
If yes, I would penalize the book for being out-of-date and not ‘fessing up to it. I would have been quite receptive to an argument that the main ideas can be demonstrated in the oldest, fundamental model, but the more recent stuff really needs to be in the book as well.
If not, no complaints, apart from insisting on more substantial chapters 9 and 11. Once we emerge from textbook options stuff after chapter 8 – including the titular “strategies”, in chapter 6 – there are only four chapters left, and one is taken up by textbook-again discussion of market-making. Less of familiar material, more of your thoughts, please.