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Option Trading: Pricing and Volatility Strategies and Techniques: 445 Hardcover – 28 May 2010
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An A to Z options trading guide for the new millennium and the new economy
Written by professional trader and quantitative analyst Euan Sinclair, Option Trading is a comprehensive guide to this discipline covering everything from historical background, contract types, and market structure to volatility measurement, forecasting, and hedging techniques.
This comprehensive guide presents the detail and practical information that professional option traders need, whether they're using options to hedge, manage money, arbitrage, or engage in structured finance deals. It contains information essential to anyone in this field, including option pricing and price forecasting, the Greeks, implied volatility, volatility measurement and forecasting, and specific option strategies.
- Explains how to break down a typical position, and repair positions
- Other titles by Sinclair: Volatility Trading
- Addresses the various concerns of the professional options trader
Option trading will continue to be an important part of the financial landscape. This book will show you how to make the most of these profitable products, no matter what the market does.
- Print length320 pages
- LanguageEnglish
- PublisherWiley
- Publication date28 May 2010
- Dimensions15.24 x 2.31 x 22.86 cm
- ISBN-100470497106
- ISBN-13978-0470497104
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From the Inside Flap
Successful trading, in general, is difficult and options specifically can be complicated. In most cases, those who do well have an ability to focus on good processes and let the results take care of themselves.
Nobody is more familiar with this situation than professional trader and quantitative analyst Euan Sinclair. In Option Trading, he's broken down the process into the parts you need to thrive an understanding of market structure, knowledge of the instruments you trade, a way to capture an edge, and a methodology for managing risk.
Written with the serious trader in mind, this comprehensive guide opens by exploring options, both historically and conceptually, and then uses the no-arbitrage principle to introduce option pricing examining both static arbitrage relationships and the dynamic hedging approach. With this critical background in hand, the largest and most substantial part of the book addresses how to actually trade options.
Along the way, you'll gain an in-depth understanding of:
- The various option strategies that can be implemented, from puts and calls to strangles, straddles, and butterflies
- How to measure and forecast realized volatility, the nature and behavior of implied volatility, and what it takes to successfully trade the two
- The concept of expected value, the general idea of hedging, and the importance of trade sizing
- The strategies behind market making
- The essential aspects of risk management in option trading
- And much more
Option trading is an important part of the financial landscape. This book will show you how to make the most of these profitable products, no matter what the market does.
From the Back Cover
Successful trading, in general, is difficult and options specifically can be complicated. In most cases, those who do well have an ability to focus on good processes and let the results take care of themselves.
Nobody is more familiar with this situation than professional trader and quantitative analyst Euan Sinclair. In Option Trading, he's broken down the process into the parts you need to thrive an understanding of market structure, knowledge of the instruments you trade, a way to capture an edge, and a methodology for managing risk.
Written with the serious trader in mind, this comprehensive guide opens by exploring options, both historically and conceptually, and then uses the no-arbitrage principle to introduce option pricing examining both static arbitrage relationships and the dynamic hedging approach. With this critical background in hand, the largest and most substantial part of the book addresses how to actually trade options.
Along the way, you'll gain an in-depth understanding of:
- The various option strategies that can be implemented, from puts and calls to strangles, straddles, and butterflies
- How to measure and forecast realized volatility, the nature and behavior of implied volatility, and what it takes to successfully trade the two
- The concept of expected value, the general idea of hedging, and the importance of trade sizing
- The strategies behind market making
- The essential aspects of risk management in option trading
- And much more
Option trading is an important part of the financial landscape. This book will show you how to make the most of these profitable products, no matter what the market does.
About the Author
EUAN SINCLAIR is an option trader with fifteen years of professional trading experience. He specializes in the design and implementation of quantitative trading strategies. Sinclair is currently a proprietary option trader for Bluefin Trading, where he trades based on quantitative models of his own design. He holds a PhD in theoretical physics from the University of Bristol. Sinclair is also the author of the Wiley title Volatility Trading.
Product details
- Publisher : Wiley; 1st edition (28 May 2010)
- Language : English
- Hardcover : 320 pages
- ISBN-10 : 0470497106
- ISBN-13 : 978-0470497104
- Dimensions : 15.24 x 2.31 x 22.86 cm
- Best Sellers Rank: 109,152 in Books (See Top 100 in Books)
- 68 in Options Trading
- 128 in Business Planning & Forecasting (Books)
- 1,252 in Finance (Books)
- Customer Reviews:
About the author

Euan Sinclair is an option trader with twenty five years of professional trading experience and holds a PhD in theoretical physics from the University of Bristol
Originally from New Zealand, Euan now lives in Chicago with his wife, dog and a large and variable number of cats.
Customer reviews
Top reviews from other countries

Is not directly a set of recipes to deal Option trading. But Option trading is very complex and if you can't ready such a book you better avoid it.
A very good reference book by a guy who know enough the matter to shed light and truths on some myths about Options Trading
The one to read before going on web to complete your training with all recipe like Iron Condor etc ...



If I were running an options desk, this would be the intro course for every new member. Even it's asides on non-options markets are better than almost any other book you'll find.