Natenberg - Option Volatility Amp Pricing Advanced Trading Strategies And Techniques Sheldon

Natenberg immediately flips this on its head. He argues that for a skilled trader, The real game is volatility.

If you have ever bought a call option that went in-the-money but still lost value, or sold a put that expired worthless but kept you up at night, you need to understand Natenberg’s world. Natenberg immediately flips this on its head

He teaches you that an option is not a bet. It is a . You can assemble risk piece by piece. You can strip out the volatility, hedge the direction, sell the time, and buy the crash. He teaches you that an option is not a bet

Next time you look at an option chain, don't ask, "Will it go up?" Ask Natenberg's question: "Is the implied volatility cheap or expensive relative to the statistical truth?" You can strip out the volatility, hedge the

That shift in perspective is the difference between the gambler and the house.