Book Review - Option volatility and pricing by Sheldon Natenberg

One of the most crucial books before starting your journey in options trading is this particular book by Sheldon Natenberg. If you are working as a quant trader or quant researcher, you may be required to go through this book in order to understand the pricing and other relevant details about options.

This is a very good book in case you are a beginner and want to understand the basics of options, futures and how they are priced and how can you exploit any mispricing in the market to your advantage. It talks about black scholes model which is a crucial method for option pricing that various quant firms rely upon.

The book explains the basics of futures, calls and puts and gradually moves up to other interesting things that can be built by using various combinations of calls and puts. Even someone who is going through all these concepts for the first time will find it easy to understand. It then explains the basic Greeks which are used for risk management of the options profile.

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