I bought this book based on all the high review ratings of so many other readers. Unfortunately I found this book to be disappointing. The author clearly knows what he is talking about but I feel does a poor job conveying the concepts to the reader. The basics of placing orders, commission structure,etc get glossed over and the author frequently mentions concepts and then states the will be discussed later in the book. This just needlessly muddies the waters. The presentation of numerical data is also poorly handled. The author describes in long-winded paragraphs concepts that could be more clearly illustrated in tables or graphs. At any rate I found the book disappointing and feel I have learned little about option investing. The book seems to be more of an academic study in options, not an investment oriented, "real world" way to profit from trading options. Someone with advanced knowledge can probably appreciate this but beginners and intermediates I think will find this book lacking.

One must keep in mind that book was written in early 1980s, and still one of the best works on options trading. Whether you are a beginner, intermediate or seasoned options trader, it certainly worth reading; even the seasoned options trader will learn few things and certainly help organize your thoughts. I like this book and still refer to it every now and then in my trading activities.

My favorite options trading text, bar none! I believe if you understand everything presented here you will have a huge leg up.

This book gave me the insight and confidence to take the other side of covered call writers' positions and profitably trade the out-of-the-money calls from a purely volatility standpoint.

It also put me on the path of trading volatility around events like earnings releases and FOMC meetings. Read this before embarking on any options trading ventures. Even though you may not choose to trade volatility directly, understanding its dynamics in relation to option prices will be of huge benefit.

I have read this book very quickly. Very easy, friendly and informative. A lot of useful information which can be applied practically.

I think this book is a must for those who've only ever covered Hull or Wilmott material (me at the point I read this). This book goes a step further and introduces you to practical information for someone who's considering a career trading options (or working in an option trading environment like me).

The major weakness with the book is that at times it's difficult to follow and the book is poorly set out (i.e. paragraphing and writing is too condensed on the page). A common theme throughout the book is that Natenberg will discuss the results from a graph or table in the middle of a page and to see the table/graph you have to turn the page. To make matters worse some of the tables have way too much information and/or are actually printed in landscape making it very cumbersome to view.

Despite its flaws it's a must read for anyone looking to take it a step further from Hull and/or Wilmott. The best aspect of this book is that it gives you an insight into the relationship between the greeks as well as how certain parameters influence each of the greeks.

The book has a lot of Option Trading 101's in it and is a good quick reference as you begin to learn about the wonderful world of options beyond the "risk-neutral" world.

It's a good manual for advanced trading, interesting to have it in the desk, by the time you are deciding to build up a position.

This was a gift item, specifically requested with Amazon.com suggested as a place to purchase the item. It was easy to look up the web site, find the book, order it and complete the purchase. The book arrived in the stated time period and was a much appreciated gift.

Who understands a spread anyway! a BC BP is what a spread?! Whos knows? I believe it is horizontal.

This is the greatest single book on trading options.It's really the only book you need on the subject.It's coverage of volatility is essential for any trader.

I just got the book so I can't comment on the content but the typeface (font) the publisher picked for it is hard to read, too condensed and too light. For a book that needs serious reading, that is a real handicap, at least for those of us with tired old eyes.

I heard that it's sort of understood that this book is the best well-wriiten and well-descriptive book. It would be a good choice for anyone who is interested in the Future and Option's market.

If you are interested in Options you cannot miss this one. Once you've read that book, everything else you could read about options will look simple and too obvious. You'll also keep that book close to you and review some of its chapters on a regular basis.

I have many option and derivative books. This book concentrates on trading and not the calculus behind the models. I found it an easier book to follow.

Excellent reference book for all serious traders who intend to invest in a deep conscious ways with options.

If you want to learn about volatility, this is the book for you. This is more advanced than a basic volatility book, so beginners and advanced students of volatility will benefit.

Also, if you are actively trading options, this book is often quoted, so you may want to get it just so that you could follow what people are saying.

great book. Discusses topics that normally do not show up in a classroom textbook. Gives one more insight in how options work.

The reason to read this book is because of it's extremely well written and useful explanation of the way volatility affects options pricing, and also by far the best description of the "Greeks".

I had already read Guy Cohen's 2 books on options. I think Guy's explanation of the actual option strategies was better. But was weak on the explanation of volatility compared with this book.

This book isn't for novice option traders, but a must read if you're intermediate level options trader. I learned a lot from this book, and it's changed the way I trade. I now look for undervalued options to buy, and overvalued options to sell. This book describes how to determine if an option is over or under valued.

If you are new to options then I don't suggest reading this book. While the book is filled with a LOT of information about the theoretical aspects of trading options and strategies and every aspect of options in detail, I think it will turn off a lot of your newbies to option trading. There is definetely a huge learning curve when it comes to option trading, but I think there are better, more practical ways to learn how to trade them. This book should only be used merely as a reference guide to terminology and various strategies. If you want to learn options, do a course like Optionetics. But a book like this if you are trying to learn them will most probably turn you off due to the length and theoretical approach taken by the author.

This book was recommended by the trainers at Think or Swim. It was a great in depth overview of option trading.

Some people think this book is too complex. Its not if you just follow it methodically and take your time to learn the material. Its the best, most comprehensive learning tool for options that I have found.

I hesitated writing a review for this book because I didn't want people to be drawn to it and therefore increase their understanding of options trading. However it looks like alot of other people already have written there review so I'll add my two cents worth.

The first time I read this book I didnt understand it and therefore I didnt like it. Fast forward a few years later with a wider understanding of options trading - I read the book again and was blown away by it. This is the best book written on options trading I have ever read. It explains more than just options strategies or the definition of different popular pricing models, it explains the basis of what goes into developing a theoritical option pricing model. It shows you the logic behind what every credible option pricing model attempts to do. I know now why I've been losing money. I've never read any other book that explains option pricing as simple and clearly as this book does and believe me, I've read alot of books. Other books I have read on option pricing are either too simplistic that many questions still linger or so complex that only someone with a heavy math background could understand it. Natenbergs book is just perfect. As I've implied earlier, you need to already have a solid knowledge of options terminology and mechanics but given that you have that, this book will take you to the next level. My hope is that most people would be too intimidated to read this book or a book like this so they never reach that next level. (Sounds mean, I know. Sorry!!!)

Most of all I like books that give me new ideas and make me think. This book does just that. I've never been the type to just trust in software or blind calculations. I've always been the type to person needing to know what goes on under the hood. Because Natenberg discusses the mechanics of pricing an option in a clear and understandable way, and because probability and volatility calculators today are cheap and even free, I have been emboldend to experiment with different pricing ideas for both options and its underlying.

This is the essential book for aspiring options traders. It is written in easy to understand language from a practitioner's perspective, as opposed to an academic's perspective. Nevertheless, a run down of the mathematics for the theoretical models is provided in the appendix.

Provides a clear and thorough explanation of options. The writing style is superb. One of the top books on options on my bookshelf.

A very, comprehensive textbook which covers most aspects from a basic to intermediary level, although slightly out-dated in its more advanced emphases; and thus may be slightly inadequate for the contemporary exotic derivatives structurer. However, it worries me that after reading this book, the "11-yr options trader" below would still regard options as a zero-sum game!

If I could only have one options book, I would choose this one. Those who find this book difficult to comprehend are not ready to trade options.

This is unfortunately the way to NOT write a book. If you want to reach people you need to keep it interesting. This book was tough to stay into. It has lots of good information but it took about 2-3 months to read.

It's comparable to college texts and probably needs to be taken a section at a time. Good information none-the-less. Buy it if you really hope to master options trading.

As a floor clerk for a professional options trading group, I beleive this book gives an excellent non-techincal overview of options trading.
Before you buy this book you should know;
The book is geared toward professionals and floor traders, but that doesn't mean that a non-professional wouldn't learn a ton about option trading (things that one could apply to trading from off the floor).
The book is not very technical. If you are looking for a technical book, buy "Options, Futures, and Other Derivatives" by John C. Hull.

I read this book after reading other more basic stuff an I really have to say that it took me to the next level. After reading this book I was able to do alot of the advanced strategies without a problem. Of course I read more advanced books then this to help me apply this stuff.
Dont listen to these idiots reviews who say there is software out there that can do all the work for you. You need to know why the software does what it does and this book will explain it. The best software in the world cannot help the losing trader.

This book is a must read for professional option floor traders and clerks at CBOE. If your interest lies in how options are actually priced and want information on the effect of volatility
on options pricing , it is the book to read.
If you are an individual investor trying to use simple option strategies to enhance your stock profits and recover your losses , this book will be too detailed and theoretical. In this case I would recommend "Generate thousands on your stocks without selling them" Sept 2003 second edition ,where the author focuses more on practical simple strategies to recover losses and enhance stock profits using options combined with timing techniques to trade stocks. Also "Rule the Freakin markets" where you can get the trading savvy and psychological edge .

Perhaps the most amazing success story in the markets and investing in the last 10 or 15 years is the growth of the options market, and the advent of inexpensive trading for derivatives such as options, allowing even the small and amateur investor to use these vehicles if he or she wants. I've read that the options market has grown more than ten-fold since the 80s, even more so than the stock market. This book will help you advance your knowledge of this important area of the market.

This is one of the few really high-level options books that are understandable without advanced math. I have a couple of other books on options and derivatives, and they require advanced calculus. It's still geared toward the professional, but as an amateur I still found it interesting and worthwhile reading. Be advised you'll probably still need to read an introductory book or two on options before tackling this volume, which is what I did. But after absorbing those two books, I found I had the background to read and appreciate Natenberg's book. Natenberg discusses all the advanced concepts so you learn such things as how to do butterfly option spreads, synthetic puts and calls, volatility spreads, how to remain delta and gamma neutral, and other such advanced concepts. Overall a great book and essential reading for anyone who wants a better understanding of this important area.

Natenberg has done an excellent job in presenting this book on options. He has very successfully combined theory with practical ideas and examples in the most important area for users of options to get their head around, volatility. Natenberg does well explaining the differences between the different modelling techniques. An excellent book.

This is a good book if you are just starting out and don't want a lot of mathematics. Gives strong high level understanding of how options work. Especially good descriptions of greeks and their behaviors.

There is a reason why almost all of the reviews of this book are in the Excellent range. It simply is a must read for anyone who wants to be serious about trading options and making intelligent trades. While the book is designed for those on the technical side of trading, it is also a gold mine for those of us simply trading options to make money! Natenberg explains concepts that are essential for the layman to be aware of in order to understand the market. The book is well worth the price just for his discussion of the normal distribution and of how it relates to volatility and investing in options. College statistics teachers could learn how to present this important concept in a meaningful way just by reading this chapter! It is easy to take the information from this book and use Excel to write a program to figure the expected price swings for any stock option based upon its volatiltiy. While the average options trader will not need to master much of the detail in the book, the simple awareness presented here will make you a better and more confident trader. By combining the ideas from this book with those from Max Ansbacher's The New Options Market, you can be in a powerful position to deal effectively in the options market.

Anyone who is serious about trading options needs a firm grasp of the greeks. Natenberg is a master at taking a very complex subject and making it as clear as possible. If you aren't dedicated to actually learning options seriously, then this probably isn't for you. But if you plan on learning options strategies, this book needs to be part of your liberary!

This bok was written by a trader for professional traders. Not only is very difficult to understand but the strategies are only useful if you are a professional trader. Only market makers can make money trading this way! Beginners should save their money and not buy this book!

Natenberg is the Bible of option floor traders, every local has read it and every new clerk who wants to trade one day should know it in and out.

While sometimes dry, this book is absolutely essential for options traders. It was the only textbook for my firm's option market-maker training. Put it this way, most of the guys taking the other side of your trade have read Natenberg, and it's not a coincidence.

This book is a must read for anyone in the options traders. it'll be a useful tool
If you are trading options & risk managing for a firm this book is like the textbook. However,not for begginners It is very difficult to understand the concept of volatility. & Pricing
but Natenberg explains the concept of volatility in great detail. (very simply)
I read a lot of books on options, but this is by far the best written, lucidly presented books on the topic that I've seen. It's intended for anyone interested in options, from absolute novices to options professions. Highly recommended. If you're serious about trading ,I highly recommend reading this book first

If you trade options, you will quickly learn that it is essential to understand the concept of volatility. Natenberg explains the concept of volatility in great detail, and shows how this concept applies to different option positions.

Natenberg not only takes great pains to explain the concept of volatility, in addition to other inputs into an option pricing model, but clearly shows that option pricing isn't the exact science many seem to believe, for the simple reason that we never know if our volatility estimate is correct. I suspect many traders just don't understand the severe limitations current models have in different situations (ie. how the Black-Scholes model underprices options near expiration).

For the mathematically inclined, there are ample formulas and equations in the appendix.

Read it, study it, and apply the concepts to develop your own trading system.

Absolutly amazing work ,a must for option traders,But not for begginners .

I have read many books on the topic, but none came close to applying the science and analyzing different synthetic positions and alternative ways of arriving at them. I'm totally impressed; this is a must read.

I am now working in Merrill Lynch Global Equity Products Group.

This is an excellent book, with simple wordings to explain the complex structured notes. I read many books on options, but couldn't find one to cover that much with such a simple way. This book is not just for the traders, but for those who have experience on options. You need to have some general idea about options before you open this book, and I highly recommend people who work in the derivatives area to read it!

With the popularity rise in options and option strategies, I must admit this is a great book to get started with. I am a clerk at the CBOE and have studied this book thoroughly, and in my experience it's the best options tutorial out there. I have also sampled the John Hull book and the official Options Institute book. The writing is very readable and it does not bog you down with overly complex derivations of each formula (there is an appendix that does derive and explain the details of the Black and Scholes model though.)

If you're serious about trading I highly recommend reading this book first - it'll be a useful tool. Working at CBOE I have seen many other clerks studying their Natenberg books during the slower times. Learning arb (hand signaling) and understanding what you are arbing are the keys for a successful options trader. This can be useful for someone just getting started in options as well or with prior experience.

I have been a professional options trader for over 11 years. In my experience most options traders fail, and for two reasons: naive faith in mathematical models and software, and a basic misunderstanding of the concept of impled volatility.

This is the one book that everyone who has worked for me has been required to read: it is ESSENTIAL. There is no other book that covers these topics in the the way that market practitioners think about them, nor does Natenberg forget to include anything that's really useful.

I have to agreed with another reviewer: understand and study this book! Options trading is a zero-sum game. Professional traders have the edge and been earning a good living from the ill-prepared, arrogant, and naive for years.

Rather simplistic and ordinariry treatment of subject for someone who wants a shallow understanding of the subject, or who is unwilling to do the math.

Hull's book is a better first course in this subject.

I went to business school and work with derivatives, so I read a lot of books on options, but this is by far the best written, lucidly presented books on the topic that I've seen. It's intended for anyone interested in options, from absolute novices to options professions. Highly recommended.

This should not be your first book on options, but it should be your first book before you trade options. This is the real-deal, the tuff-stuff, the holy grail. If you can't understand Ratio Backspreads as explained don't trade options because the players understand perfectly. This is a book to buy and read and study, and read and study, and read and study, It's not easy but it's the facts. If this sounds to tough I suggest a Wade Cook book if you want something an idiot could understand. But that won't make you any money, with this one you have a shot

Either you'll love it or you won't understand it. If you're starting in options, choose other books than this one. If you already have an options background then THIS is the book you want. It is the most complete options book I've read.

Great stuff for floor traders. You can buy any software package that does automatically what the author takes 300 pages to explain.

Reality is you need a basic understanding of the contents of this book that you can get better from other authors. This is not a practical book on how to get started and apply the theory. It is a floor traders impression of what they have to know. Do they use it or are they required to learn it?

As a full time option trader I have been successful without worrying in depth about the mathematical values of the greeks. My software does that for me. Leaving me to trade.

The book stops my other books falling over as it is heavy and looks impressive to my trader visitors who pick it up. Grunt and then put it down. They don't understand it either.

We just make money trading options so what do we know.

Thanks for the bookend.

This book is a MUST read for anyone in the options business. If you are planning on trading options for a firm or on the floor this book is like the bible (just ask anyone else). However, a word of caution, this is NOT a book for someone who wants to get an introduction to options (pick up Thomsett's book instead). In my opinion, this book is geared towards readers who want to know more about the details of how options are priced (something that every clerk or runner aspiring to be an options trader should know). In that aspect, it is one of a kind. An excellent read.