One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to reflect the most current developments and trends in option products and trading strategies. Featuring: Pricing models Volatility considerations Basic and advanced trading strategies Risk management techniques And more! Written in a clear, easy-to-understand fashion, Option Volatility & Pricing points out the key concepts essential to successful trading. Drawing on his experience as a professional trader, author Sheldon Natenberg examines both the theory and reality of option trading. He presents the foundations of option theory explaining how this theory can be used to identify and exploit trading opportunities. Option Volatility & Pricing teaches you to use a wide variety of trading strategies and shows you how to select the strategy that best fits your view of market conditions and individual risk tolerance. New s (more…)

As serious and sophisticated investors know, options are a viable and increasingly popular way to enhance their portfolios. Yet even the most savvy investors need instruction.Now in its third edition, The Options Workbook has been updated and reformatted in a larger, more convenient, and user-friendly design. Three all-new chapters explain key trading concepts-volatility, the collar, and the covered call-and show how these can be applied to mitigate risk and increase profits. What’s more, this fresh edition incorporates additional interactive content-exercises, hands-on tools, and lessons that complement the in-depth curriculum on ITI’s Web site, www.itichicago.com.

From the Publisher

“ITI is the reason for our success. We would never let anybody trade for us without the ITI education.” —Patrick Enblad Executive Director, Head of Trading Hagstromer & Gviberg Fondkommission AB Stockhold, Sweden As serious and savvy investors know, o (more…)

Review

“An excellent guide for learning how to trade option spreads. Saliba offers in-depth discussions on how and when to employ these advanced strategies and to manage the risk of each position.” Peter LipskyTrader, Pan Capital

Review

Hands down the definitive guide on spread trading. Must reading for any professional who wants to learn directly from one of the top leaders in the options industry.” —Larry Connors, CEO TradingMarkets.com “An excellent guide for learning how to trade option spreads. Saliba offers in-depth discussions on how and when to employ these advanced strategies and how to manage the risk of each position.” —Peter Lipski, trader Pan Capital “Option Spread Strategies: Trading Up, Down, and Sideways Markets is an invaluable addition to any market resource collection. The book concisely walks through the dynamics of spread strategies and guides the reader though the return and risk metrics of the t (more…)

Most businesses will face commodity risk in some form. It is how the company manages this risk that will help to determine the success of the firm. In this highly practical book, John J. Stephens explains in a clear concise manner the best techniques for managing such risks. Aimed at the ordinary businessperson, this book is a practical primer for those who wish to manage and minimise the risk to their industry, through instruments such as commodity futures, without wishing to have the technical knowledge of professional financiers. This book provides the ideal starting point for the good manager not only to minimise commodity risk but to gain benefit also.

From the Inside Flap

Commodity risk and commodity futures are not merely used by financial traders, they can also be an invaluable tool for the everyday business manager. This book examines, in a balanaced and objective fashion, the extent to which the commodity futures markets can be used to the (more…)

A groundbreaking collection on currency derivatives, including pricing theory and hedging applications. “David DeRosa has assembled an outstanding collection of works on foreign exchange derivatives. It surely will become required reading for both students and option traders.”—Mark B. Garman President, Financial Engineering Associates, Inc. Emeritus Professor, University of California, Berkeley. “A comprehensive selection of the major references in currency option pricing.”—Nassim Taleb. Senior trading advisor, Paribas Author, Dynamic Hedging: Managing Vanilla and Exotic Options. “A useful compilation of articles on currency derivatives, going from the essential to the esoteric.”—Philippe Jorion Professor of Finance, University of California, Irvine Author, Value at Risk: The New Benchmark for Controlling Market Risk. Every investment practitioner knows of the enormous impact that the Black-Scholes option pricing model has had on investment an (more…)

This is a comprehensive guide to the world’s largest financial market. Foreign exchange is the world’s largest financial market and continues to grow at a rapid pace. As economies intertwine and currencies fluctuate there is hardly a corporate entity that doesn’t need to use options on foreign exchange to hedge risk or increase returns. Moreover, currency options, both vanilla and exotic, are part of standard toolkit of professional portfolio managers and hedge funds. Written by a practitioner with real-world experience in this field, “The Third Edition of Options on Foreign Exchange” opens with a substantive discussion of the spot and forward foreign exchange market and the mechanics of trading currency options. The Black-Scholes-Merton option-pricing model as applied to currency options is also covered, along with an examination of currency futures options. Throughout the book, author David DeRosa addresses the essential elements of this discipline and prepares you f (more…)

Dynamic Hedging is the definitive source on derivatives risk. It provides a real-world methodology for managing portfolios containing any nonlinear security. It presents risks from the vantage point of the option market maker and arbitrage operator. The only book about derivatives risk written by an experienced trader with theoretical training, it remolds option theory to fit the practitioner’s environment. As a larger share of market exposure cannot be properly captured by mathematical models, noted option arbitrageur Nassim Taleb uniquely covers both on-model and off-model derivatives risks. The author discusses, in plain English, vital issues, including: The generalized option, which encompasses all instruments with convex payoff, including a trader’s potential bonus. The techniques for trading exotic options, including binary, barrier, multiasset, and Asian options, as well as methods to take into account the wrinkles of actual, non-bellshaped distributions. M (more…)