Option Volatility and Pricing

Advanced Trading Strategies and Techniques · 2nd Edition
By Sheldon Natenberg

Option Volatility and Pricing is the definitive professional guide to understanding options markets, volatility behavior, and risk management. Used globally by market makers, hedge funds, and professional traders, this book explains how options actually behave in real markets — not just how they are priced in theory.

The second edition expands on volatility modeling, option pricing theory, and hedging mechanics with practical examples drawn from modern derivatives trading. The emphasis is on execution, intuition, and risk control rather than abstract mathematics.

Product Details

• Title: Option Volatility and Pricing
• Subtitle: Advanced Trading Strategies and Techniques
• Edition: 2nd Edition
• Author: Sheldon Natenberg
• ISBN-13: 9780071818773
• Format: Paperback
• Pages: 592
• Availability: In Stock | Free Shipping

What This Book Covers

• Implied vs historical volatility, skew, and term structure
• Option pricing models including Black–Scholes and binomial trees
• The Greeks and their real-world behavior
• Volatility-based strategies such as spreads and combinations
• Dynamic hedging and position risk management
• Market psychology and volatility cycles

Why Traders Trust This Book

• Industry standard used by professional options traders
• Explains complex theory using intuitive market logic
• Balances quantitative rigor with practical execution insight
• Strong focus on volatility surfaces and risk control
• Bridges retail and institutional trading knowledge

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Overview

A professional-grade options trading reference focused on volatility, pricing behavior, and risk management. Designed for traders who want to understand how options move in real market conditions.

Who Should Use This Book?

• Options traders seeking mastery of volatility and the Greeks
• Portfolio managers and risk analysts
• Derivatives and quantitative finance students
• Professional traders advancing to complex strategies
• Serious retail traders aiming for institutional-level understanding

Why Buy from BooksGoat?

• Free Shipping on all orders
• Lowest Price: $49.99
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FAQs

• Do I need a strong math background to use this book?
  Basic algebra and probability are helpful, but the book emphasizes trader intuition and real-market behavior rather than heavy mathematics.
• Is this book suitable for retail traders?
  Yes. It is widely used by retail traders seeking to elevate their understanding to professional-level volatility and risk management.
• Does the book cover volatility-based trading strategies?
  Yes. It includes straddles, spreads, combinations, and volatility-driven approaches used by professional traders.
• Is this book theoretical or practical?
  It balances theory with execution-focused insights, emphasizing how options behave in live markets rather than formulas alone.

Master volatility to master options trading.