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
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
Trading Resource Guide 157