Option Volatility and Pricing (Sheldon Natenberg)

“Option Volatility and Pricing” by Sheldon Natenberg discusses how the value of options—contracts giving the right to buy or sell an asset—depends heavily on volatility, or how much the asset's price fluctuates. Higher volatility increases option prices because it raises the chance of significant price moves, making options more valuable. The book explores mathematical models, like the Black-Scholes model, used to estimate fair prices, and how factors like time, interest rates, and market behavior influence option pricing. Overall, it provides a professional understanding of managing risk and pricing strategies in options trading.