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"Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition" by Sheldon Natenberg is a comprehensive guide to understanding options trading with a focus on volatility, pricing models, and risk management. It explains key concepts such as implied volatility, historical volatility, and volatility skew, and their crucial impact on option pricing.
The book breaks down complex theories using clear illustrations and graphs. Natenberg teaches readers how to analyze and hedge option positions to manage risk effectively. It also covers advanced pricing models like Black-Scholes and emphasizes understanding market behavior for better trading strategies.
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