Synopses & Reviews
Sheldon Natenberg is one of the most sought after speakers on the topic of option trading and volatility strategies. This book takes Sheldon’s non-technical, carefully crafted presentation style and applies it to a book—one that you’ll study and carry around for years as your personal consultant.
Learn about the most vital concepts that define options trading, concepts you’ll need to analyze and trade with confidence. In this volume, Sheldon explains the difference between historical volatility, future volatility, and implied volatility. He provides real inspiration and wisdom gleaned from years of trading experience.
Th is book captures the energy of the spoken message direct from the source.
- Learn about implied volatility and how it is calculated
- Gain insight into the assumptions driving an options pricing model
- Master the techniques of comparing price to value
- Realize the important part that probability plays in estimating
option prices
Synopsis
In a call to all traders, one of the world's most renowned experts on option trading and volatility has put his advice into a book and finally -- made it simple You'll feel as if the master of trading, Sheldon Natenberg, is right next to you, guiding you through this potentially complex world of options. Unlike price and time, volatility is the one element of the market that is virtually invisible to a trader. Thus, having accurate methods to assess this elusive aspect is critical to successful options trading. With advances in technology, options have swelled in popularity and traders have risked their fortunes without an easy-to-understand explanation of the important factors in separating profit from loss. Now, presented with clear and understandable insight are option-trading strategies, formulas, and definitions including: * Volatility * Pricing Formulas * Valuation * Fundamentals * Self-tests
Synopsis
Sheldon Natenberg is one of the most sought-after speakers on the topic of option trading and volatility strategies. This book takes Sheldon's non-technical, carefully crafted presentation style and applies it to a bookone that you'll study and carry around for years as your personal consultant.
Learn about the most vital concepts that define options trading, concepts you'll need to analyze and trade with confidence. In this volume, Sheldon explains the difference between historical volatility, future volatility, and implied volatility. He provides real inspiration and wisdom gleaned from years of trading experience.
This book captures the energy of the spoken message direct from the source.
- Learn about implied volatility and how it is calculated
- Gain insight into the assumptions driving an options pricing model
- Master the techniques of comparing price to value
- Realize the important part that probability plays in estimatingoption prices
Synopsis
This print rendition of Sheldon Natenberg's highly successful
Mastering Option Trading Volatility Strategies presentation is a must-have. It outlines his personal approach for analyzing and trading options the way the pros do: using option models, estimating option prices, and using key volatility techniques.
From the basis of implied volatility and how it's calculated, to the importance of dynamic hedging through delta and neutral positions, Natenberg delivers a five-star presentation in print that explains critical concepts simply and concisely. Here he proves once again that he's the foremost expert on volatility.
Arming yourself with this book can enhance your trading success in every type of market and allow you to reap considerable rewards by mastering the most effective volatility techniques from an absolute master of the game.
About the Author
Sheldon Natenberg is one of the most sought-after speakers on the topic of option trading and volatility strategies. As a speaker and Co-Director of Education for Chicago Trading Company, Natenberg has helped many of the world's top institutional investors, mutual fund managers, and brokerage analysts better understand volatility and utilize it in valuing and pricing options of all types. He is the author of Option Volatility and Pricing: Advanced Trading Strategies and Techniques, widely considered to be the finest book ever written on the subject. First published in 1988, and revised in 1994, the book established Sheldon as one of the world's most acclaimed authorities on volatility and its impact on pricing and tracing strategiesa reputation he has continued to build ever since.
Table of Contents
Meet Sheldon Natenberg vii
Chapter 1 : Th e Most Important Tool for any Options Trader 1
Chapter 2 : Probability and Its Role in Valuing Options 9
Chapter 3 : Using Standard Deviation to Assess Levels of Volatility 35
Chapter 4 : Making Your Pricing Model More Accurate 55
Chapter 5 : Th e Four Types of Volatility and How to Evaluate Them 67
Chapter 6 : Volatility Trading Strategies 81
Chapter 7 : Th eoretical Models vs the Real World 107
Appendix A : Option Fundamentals 115
Appendix B : A Basic Look at Black-Scholes 129
Appendix C : Calendar Spread 133
Appendix D : Greeks of Option Valuation 137
Appendix E : Key Terms 141
Index 149
Trading Resource Guide 157