Hull, Taleb, Natenberg - What order?
I have: 1. "Options, Futures and Other Derivatives", Hull 2. "Dynamic Hedging", Taleb 3. "Option Volatility & Pricing", Natenberg
Any suggestions on what order to tackle these books, or which one would be most useful for interview questions/early days on the job at a trading desk?
I personally like Hull because it has review questions and work book to gain proficiency, but my favorite to gain "rule world desk practical knowledge" is Exotic Options Trading by De Weert. Read some of the chapters in Hull to get a better understanding of exactly how options and forwards are prices, then move on the De Weert to learn more about the greeks.
You would not get much out of 2 without having first read #3. It depends on what the desk is trading... if it is not options trading than 2 and 3 would both be pretty worthless. 1 would give you a broader exposure to things like futures and forwards; 3 would give you more practical options knowledge.
For options trading though, I would go 3 first, maybe 1, and save 2 for when you have a good grasp of options.
Natenberg's book is pretty easy to digest. Hull is the standard book; however, be aware that it is a hardcore book. Also, make sure you buy the US version if you go with Hull. I accidentally bought the Euro version and it screws up the math because EU options can only be exercised on expiration day versus US where you can exercise at any time.You really need to grasp the fundamentals and math behind options pricing before really being able to comprehend Hull's book. It is the book on options though.
Good luck!
Natenberg > Hull if we are talking about options only. Once you understand Nat then Taleb.
I read Natenberg and then Hull and I felt completely prepared for full-time interviews for derivatives market making positions. Natenberg is a bit more practical for real-life events, but Hull digs much, much deeper into the theoretical background of the material.
I don't think Taleb is going to be awfully useful for anyone before they at least sit on a desk and see what is going on. A lot of the good bits from it are going to go over your head or not be fully understood otherwise.
Hull is basically a straight academic text on derivatives pricing. There isn't much else to it. Whoever said to not get the European version because of Euro options is a fucking moron. Seriously, what are you talking about? Have you read Hull to even understand what is going on? BSM is based on Euro-style options in the first place.
Natenberg is the best book for vanilla options, period.
Molestiae deleniti odio eos quibusdam corrupti. Similique doloribus dolore omnis voluptatem aut placeat suscipit. Pariatur nesciunt quos qui maxime voluptates hic nisi.
Rem ab corrupti animi. Voluptas saepe a fuga. Nihil corrupti quasi voluptas hic facere dolores.
Sint sint fuga quas ut ea est at. Vel blanditiis cupiditate eaque rem. Quia rerum velit rerum et. Sit porro debitis quos reiciendis est et vitae. Ad illo a animi dignissimos quia. Consequatur accusamus dolorem facere.
Inventore harum debitis cupiditate atque. Veritatis illum nam ducimus officia rerum eveniet. Ratione iste maiores illo maxime magnam laboriosam. Quis qui porro consequatur qui quia numquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...