Sheldon Natenberg - Basic Option Volatility Strategies

Table of Contents

Copyright 2007 by Sheldon Natenberg

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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PUBLISHERS PREFACE

What you have in your hands is more than just a book. A map is simply a picture of a journey, but the value of this book extends well beyond its pages. The beauty of todays technology is that when you own a book like this one, you own a full educational experience. Along with this books author and all of our partners, we are constantly seeking new information on how to apply these techniques to the real world. The fruit of this labor is what you have in this educational package; usable information for todays markets. Watch the video, take the tests, and access the chartsFREE. Use this book with the online resources to take full advantage of what you have before you.

If you are serious about learning the ins and outs of trading, youve probably spent a lot of money attending lectures and trade shows. After all the travel, effort, expense, and jet lag, you then have to assimilate a host of often complex theories and strategies. After thinking back on what you heard at your last lecture, perhaps you find yourself wishing you had the opportunity to ask a question about some terminology, or dig deeper into a concept.

Youre not alone. Most attendees get bits and pieces out of a long and expensive lineage of lectures, with critical details hopefully sketched out in pages of scribbled notes. For those gifted with photographic memories, the visual lecture may be fine; but for most of us, the combination of the written word and a visual demonstration that can be accessed at will is the golden ticket to the mastery of any subject.

Marketplace Books wants to give you that golden ticket. For over 15 years, our ultimate goal has been to present traders with the most straightforward, practical information they can use for success in the marketplace.

Lets face it, mastering trading takes time and dedication. Learning to read charts, pick out indicators, and recognize patterns is just the beginning. The truth is, the depth of your skills and your comprehension of this profession will determine the outcome of your financial future in the marketplace.

This interactive educational package is specifically designed to give you the edge you need to master this particular strategy and, ultimately, to create the financial future you desire.

To discover more profitable strategies and tools presented in this series, visit www.traderslibrary.com/TLEcorner .

As always, we wish you the greatest success.

President and Owner

Marketplace Books

HOW TO USE THIS BOOK

The material presented in this guide book and online video presentation will teach you profitable trading strategies personally presented by Sheldon Natenberg. The whole, in this case, is truly much greater than the sum of the parts. You will reap the most benefit from this multimedia learning experience if you do the following.

The online video at www.traderslibary.com/TLEcorner brings you right into Natenbergs session, which has helped traders all over the world apply his powerful information to their portfolios. Accessing the video is easy; just log on to www.traderslibrary.com/TLEcorner , click Basic Option Volatility Strategies by Sheldon Natenberg under the video header, and click to watch. If this is your first time at the Education Corner, you may be asked to create a username and password. But, it is all free and will be used when you take the self-tests at the end of each chapter. The great thing about the online video is that you can log on and watch the instructor again and again to absorb his every concept.

Dig deeper into Natenbergs tactics and tools as this guide book expands upon Natenbergs video session. Self-test questions, a glossary, and key points help ground you in this knowledge for real-world application.

After watching the video and reading the book, test your knowledge with FREE online exams. Track your exam results and access supplemental materials for this and other guide books at www.traderslibrary.com/TLEcorner .

Now that you have identified the concepts and strategies that work best with your trading style, your personality, and your current portfolio, you know what to dogo make money!

MEET SHELDON NATENBERG

As you will learn later in this book, volatility is the most nebulous factor in determining what the value, and therefore the price, of an option actually should beand no one is more adept at assessing volatility than Sheldon Natenberg.

As Director of Education for Chicago Trading Company and a highly sought-after lecturer at professional training seminars both here and abroad, Sheldon has helped many of the worlds top institutional investors, mutual fund managers, and brokerage analysts better understand volatility and utilize it in valuing and pricing options of all types.

However, his greatest claim to fame came as the result of his authorship of Option Volatility and Pricing: Advanced Trading Strategies and Techniques (McGraw Hill, 1994)considered by many to be the finest book ever written on the subject. First published in 1988 (revised in 1994), the book established Sheldon as one of the worlds most acclaimed authorities on volatility and its impact on option pricing and trading strategiesa reputation he has continued to build ever since. His ongoing success at evaluating and applying option trading strategies ultimately earned him induction into the Traders Library Traders Hall of Fame.