Option Trading: Pricing and Volatility Strategies and Techniques

Option Trading: Pricing and Volatility Strategies and Techniques is a comprehensive guide for traders who want to master the art and science of options trading. Written by professional trader and volatility specialist Euan Sinclair, this book bridges the gap between theory and practical application, offering an in-depth look at how to trade options profitably by understanding pricing models, volatility dynamics, and market behavior.

Sinclair covers the fundamentals of option valuation, including the Black-Scholes model and alternative pricing approaches, before moving into advanced strategies that exploit volatility and market inefficiencies. He emphasizes risk management and position sizing, showing how successful traders approach the markets as a business.

The book also provides actionable guidance on constructing, executing, and managing option positions in real-world conditions. From directional trades to market-neutral strategies, readers will learn how to adapt to changing volatility regimes and optimize their trading edge.

With its balance of quantitative rigor and trader-friendly explanations, Option Trading is suitable for both aspiring and experienced option traders who want to elevate their skills and results.

✅ What You’ll Learn:

• Core principles of option pricing and valuation.
• How implied and historical volatility affect option prices.
• Strategies for trading volatility directly and indirectly.
• How to construct market-neutral and directional option trades.
• Risk management techniques for long-term success.

💡 Key Benefits:

• Written by a professional trader with real-world experience.
• Integrates theory with practical, actionable strategies.
• Covers both basic concepts and advanced volatility trading.
• Emphasizes risk control and business-like trading discipline.

👤 Who This Book Is For:

• Traders seeking to understand and exploit option pricing.
• Volatility traders looking for advanced strategies.
• Portfolio managers wanting to incorporate options for hedging or income.
• Intermediate and advanced traders aiming to refine their skills.

📚 Table of Contents:

1. Introduction to Options and Volatility
2. Fundamentals of Option Pricing
3. The Black-Scholes Model and Beyond
4. Implied vs. Historical Volatility
5. Directional Option Strategies
6. Market-Neutral Option Strategies
7. Position Sizing and Risk Management
8. Trading Psychology and Discipline
9. Adapting to Market Conditions
10. Running an Options Trading Business