Sheldon Natenberg – Mastering Option Trading Volatility Strategies

Run time 89 minutes. The key concept affecting option pricing is volatility. The world’s most acclaimed volatility expert and ”Trader’s Hall of Fame” award winner provides a step-by-step workshop for understanding why and how volatility plays a critical role in options trading. The option models have strengths and weaknesses. Estimating option prices involves vital part probability plays. There is a difference between historical volatility, future volatility and implied volatility. The function of each. Understand why the perception of volatility is more important than market direction in option pricing. By mastering key volatility techniques, you can become acquainted with the steps needed to analyze and trade options.

Natenberg thoroughly explains.

• The basis of implied volatility and how it is calculated.
• The importance of dynamic hedging through delta neutral positions.
• The assumptions driving an options pricing model.
• How to compare price to value.
• How option-trading decisions begin by comparing implied volatility to future volatility.

This presentation is the perfect companion to Natenberg’s book. There is option, volatility and pricing. This important trading principle can be mastered with a stand-alone primer.