Option Trading: Pricing and Volatility Strategies and Techniques

Praise for Option Trading

"In this era of unprecedented volatility, it has become imperative to understand the intricacies of options markets. This book gives an unyielding trader's perspective on options trading, from the basics of option pricing to the finer points of risk management. I highly recommend it as the best book of its kind on the market."
—Peter Carr, PhD; Head of Quantitative Financial Research, Bloomberg LP, Director of the Masters in Math Finance Program, Courant Institute, NYU

"A no-nonsense instruction manual for becoming a professional options trader. This is not a theoretical account of what the author thinks markets ought to do, nor does it promise trading ideas so good you can ignore risk management, hedging, position repair, and other basic professional skills. It merely explains how professionals turn real ideas into real money."
—Aaron Brown, Risk manager at AQR Capital Management and author of The Poker Face of Wall Street

"With the release of Option Trading, Euan Sinclair has once again set a new higher standard for options literature and provides a welcome companion to his excellent Volatility Trading. Sinclair is a professional options trader and emphasizes that making profits among intelligent competitive traders requires techniques and processes that must lead to a definable, tractable, and executable edge. His most useful contribution to a field crowded with poor treatments is his insistence on not oversimplifying or waving away the option trading process because it takes accuracy, work, and thought. Yet Sinclair's clarity and technical mastery give focus where previous authors have wallowed in obscurantism to camouflage ignorance and lack of practical experience. Sinclair's Option Trading is the finest work on the subject available and makes all previous treatments obsolete."
—James N. Ward, Professor of Finance, The American University of Paris, and European Head of High Yield Investments, AXA Investment Managers–Paris