Two of methods in this books are unique, but too hard to put to use in consistent basis for serious traders. Save money and buy a book on technical analysis on stocks for options trading.

Rare find, this book is well written and nicely organized. I now have a far greater insight on how to profit in my option trading using volitility as an additional method. I read one review that mentioned that this book is not the Holy Grail, I agree and neither is any other book I have ever read on the subject, I do not believe there is such a thing nor probably ever will be. I will say this much about Mr Augen's book, it is definitely in the top 5% of those on the market today and any serious or want to be serious trader ought to do himself or herself a favor and add this arrow to their quiver.

I agree generally with the other 5 star reviews. I would add that Augen does a great job of giving the reader a sense of the time and effort it takes to get an edge with respect to trading volatility. The statistical anaylses required take a lot of time and effort and Augen's analysis techniques, which are discussed at length in the book, I believe are invaluable. Not a book for beginners, but experienced, self-directed traders will find this book to be a gem.

The author, Augen, trades for a living but has spent more than a decade developing his own method for trading (page xii ).
In his book he shares his own personal knowledge and experience utilizing a ying and yang cast to communicate the message.
He discusses the Black - Scholes pricing model and the Cox - Ross - Rubenstein model. Then he compares the standard deviation of volitility of option prices with the standard deviation of equity prices as seen in Bollinger Bands. He explains how arbitrageurs make their money from option trading and how ordinary folk make money from option trading. He describes his option strategies as either simple or complex and finally he applies those strategies to the earnings cycle and the expiration cycle.

Overall, the book was easy and enjoyable to read.

Definitely worth the price. I have been trading options for only one year and I believe that with enough study, it is easy to understand the power of Augen's methods for trading around earnings and expiration. His analysis on standard deviation spikes alone opened up my eyes to how you can gain that edge around those two important times in an options life. He definitely opened my eyes to how volatility truly plays into options. I would highly recommend if you want that true edge in options.

A well-written book with clear explanations. Not enough to make money on a consistent basis.

This is an excellent resource for those who want to really understand more complex option positions and trade management. He explains the theory and mathematics very well. I've been able to replicate his "spike" analysis in MS Excel and have back tested many of his examples. Jeff is top notch as far as applying his background from life sciences and technology to trading financial markets. One key thing I learned was to manage the option trade itself and not the underlying or holding until expiration. Also there are several examples of market behavior that are inexplicable with Black-Scholes theory and he shows you how to spot those opportunities. You'll find good suggestions for trading the earnings and expiration cycle too. Volatility and Time are what you are trading with options. One caution, some of the trades involve short positions and he explains delta-neutral tips from professional hedgers. You just have to manage your own risk and work with what you are comfortable with. I've found this book very useful in setting up option income trades like Long Iron Condors and selling Put or Call spreads. You'll need to go through the book a few times. It makes much more sense as you apply these principles to real trades.

Certainly worth the money paid. If you trade options on a regular basis, you will appreciate the fine points that the author has tried to highlight. Although, I must say, its not an easy read; certainly not for people who do not trade options regularly or do not understand options mysterious behaviors. You will find "meeting of minds" between the author and a seasoned option traders.

One of the few trading books that instructs the reader on when, where, why, and how to place an option trade that has an excellent statistical probability of success. His Standard Deviation Spike Graphs are useful in that they can help to identify (by scanning), and capitalize (complete trading plan)on profitable opportunities. There are many more useful bits of info. The author is a professional trader using the techniques he writes about; many of which I (20+ yr option student/vet) use, and can confirm that they work. He is also correct in stating that successful options trading is darn near a full time job. For new traders beware, his advice is geared towards bloodied experienced traders, so practice for a while. Micheal Jordan telling us his secrets on how he drove the lane against Jabbar, Worthy, and Rambus is useful but be careful during practice (a pull-up perimeter jumper might be lower risk at first). As always, any advice on trading without a complete trading plan will fail to help any trader. If you are close to making it, continue to learn all that you can while knowing that this book will definitely help push you over the edge into long term trading success. This book is a must for any trading shelf, and is a steal at this price.

I have read many books on options -- from Cox/Rubinstein's mid-80s textbook treatise (now, sadly, out of print) to Bookstaber, to MacMillan, to Natenberg.

This is by far the best book on options I have read in years. A tremendous blend of the academic and practical, the mathematical and the tactical. Jeff's explanations of the various moving parts of option pricing is superb. Great graphs, tables, lucid writing.

Excellent examples of trade progressions so you can see how the value of a position alters dynamically -- whether over a single trading day such as expiration or over a number of days.

While this is aimed at a more advanced trader with a deeper understanding of both the mathematics of option pricing and descriptive statistics in general, I think even beginners should crack it open. Even if it is a bit of a struggle at first, you will be rewarded by reading it.

Highly recommended.

As someone that has been trading options for a couple of years now, I'm always looking for a new book to enhance my trading performance. This book definately is a must read for every options trader. Time and time again I see people trade options and lose money even though their opinion of the underlying is correct. This book gives the trader insight on when to enter and exit trades and why, which most options books fail to give.

The Volatility Edge also gives options traders methods on how to better graph historical volatility and underlying stock moves. These methods give the trader the ability to spot over priced and under priced options much easier.

Overall the book is great and easy to read. I hope the author continues to write on this topic.

An excellent book, with some novel ideas and concepts not covered in other books on options. Specifically useful are the following discussions:

- standard deviations and volatility charts
- discussions of liquidity and volatility swings
- hedging with VIX
- trading the earnings cycle
- trading the expiration cycle
- excellent coverage of all the main options strategies and spreads

Not a beginners book, and a year or two of decent options trading experience is recommended to get a good grasp of the concepts, but thats
great as there too many beginners book out there, all mostly the same!

A friend of mine in the trading industry suggested I read this gem of a book ... within a single weekend I did just that ... and what a gem it is!

Jeff Augen has put together a fine body of work in this book within which there are some seriously valuable nuggets of information.

The volatility spike graphs are a novelty in this business that anyone studying and trading volatility should benefit from. Essentially what he's uncovering is "differential volatility", in other words whether the volatility is being caused by buyers or sellers.

Typically, falling prices (due to selling action) will cause greater volatility, but not always. Sometimes the volatility is caused by rising prices. By understanding the direction in which the greater volatility of the underlying is occurring, the trader is able to position trades more appropriate to that skew. For example if the spikes indicate that volatility is caused by buying action then the calls may well be undervalued in advance of the next spike up. The trader can then make a double whammy trade, correct in direction and correctly in volatility.

Other nuggets include Jeff's slant on expiration date and earnings cycle trading, and the concept of stocks pinning to the strike, all of which are essential chapters in the book.

You'll be a more knowledgeable trader for reading this book and you should become a better trader for sure.