W FINANCIAL ENGINEERING. DINAMIC. HEDGING. MANAGING. VANILLA AND . EXOTIC OPTIONS. Nassim Taleh. Page 2. Page 3. Page 4. Page 5. Page 6. Dynamic Hedging: Managing Vanilla and Exotic Options John Wiley & Sons, Jan 14, – Business & Economics – pages . Wiley finance editions. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to Dynamic Hedging: Managing Vanilla and Exotic Options.
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Goodreads helps you keep track of books you want to read. Want to Read saving…. Want to Read Currently Reading Read. Refresh and try again. Open Preview See a Problem? Thanks for telling us about the problem. Return to Book Page. Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management. Fills a big gap in investment literature — the only book to share complex options trading strategies and manging risk management methods with Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management.
Fills a big gap in investment literature — the only book to share complex ailey trading strategies and advanced risk management methods with trading professionals. Hardcoverpages. Published January 14th by Wiley first published December 31st To see what your friends thought of this book, please sign up.
To ask other readers questions about Dynamic Hedgingplease sign up. Lists with This Book. Sep 05, Austin rated it did not like it Shelves: Do you remember reading The Divine Comedy and getting finally exoic the part where the two poets apparently on an extended smoke break from their barista jobs in Brooklyn get to the ninth circle of Hell only to think to yourself, “Brutus and Cassius? I mean Judas I totally get, and these guys are distasteful and all, but the inner circle?
We may forgive Signor Alighieri for his error, for he was Do you remember reading The Divine Comedy and getting finally to the part where the two poets apparently eynamic an extended smoke break from their barista jobs in Brooklyn get to o;tions ninth circle of Hell only to think to yourself, “Brutus and Cassius?
Dynamic Hedging: Managing Vanilla and Exotic Options
We may forgive Signor Alighieri for his error, for he was born years too early to recognize the ominously darkened visage of Nassim Nicholas Taleb next to the ludicrously grinning mug of Paul Wilmott as they bookend Judas Iscariot for all of eternity. The thing is that this book is bad. Really bad, and in need of an editor.
The redundant sentences bounce off of each other without forming a coherent picture of anything but Taleb’s ego.
He says in the preface that he “clambered up to my attic where, during 6 entire months, I spent 14 hours a day, 7 days a week immersed in probability at a Ph. Then I began to write this book. Note that the ” at a Ph. As they say in The Big LebowskiI guess he’s just “not into that whole brevity thing. There was an apparently straight-faced claim that we should care about the seventh derivatives of our options positions, which seems more than a bit ludicrous.
All this was interspersed with asides in grey boxes that completely disrupted the flow of the text. Honestly, the maanging way to read the book is probably to read the grey boxes and nothing else.
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And then there was the relentless repitition of the refrain that quants don’t know what they are talking about, experienced traders know these things in their sleep. Taleb, despite his claims of hour marathon mathematical musings cannot seem to make up his mind if he is a mathematician, a trader, or both.
The only thing that is clear is that he believes himself to be above all of them. This book is not without a following, which to me is very odd. I suspect it originates from the lack of other books on the subject at the time of its publication. Taleb does manage to point out convincingly by beating you over the head with it for pages that nonlinear instruments carry with them risks that linear ones do not. Still, the amount of intuition garnered about how to deal with, or even think about such things contained in Dynamic Hedging is tiny compared with, for example, the books by Sheldon Natenberg or Lawrence G.
Lots of people write bad books, so what is it that qualifies Mess. Taleb and Wilmott to be satanic hors d’oeuvres until the end of days? The ninth circle of hell is about betrayaland these gentlemen have repeatedly run roughshod over the very people who would be their biggest champions: In their blindingly narcissitic quest to prove to the world that they are smarter than their peers, they have done more than any source since “Revenge of the Nerds” to perpetuate the myth that people schooled in the mathematical sciences can’t tie their own shoes without an M.
They need you to believe that all quants follow models blindly and without question in order for you to be impressed by the fact that they themselves do not. The thing is, Nassim Taleb is a very smart guy the jury is totally out on Wilmott. Though this book is quite poorly written, I understand that his others which I’ve not read are better, and his public remarks seem to indicate that he has a much better than average grip on the statistical realities of the market.
His approaches seem sound. If he had just held the scimitar aloft and said, “let us slay the black swan,” then I assume that lots of quants would have been there with him sparking up the torches and sharpening the pitchforks.
Instead, he chose to demonize his own kind in order to stand even farther apart. If this sounds familiar, it’s because it is the plot of many a teen movie. The coolest of the unpopular kids, when given an opportunity to sit at the cool kids’ table in the cafeteria read: Wilmott plays his own insidious version of this game. In many ways, his is worse. Whereas Taleb wants to be recognized for his genius, Wilmott wants to be paid for it. This “there’s something wrong with you that only I can fix” attitude reminds me of Scientology a bit.
So what do we do with these two poster boys for Muchausen-Syndrome-by-Proxy? I say call it like you see it. Not every book that sells well is a great one. That liquid splashing your ear is not rain, my friend. View all 3 comments. May 20, Andy rated it it was amazing Shelves: This book will be of zero interest to anyone not involved in the securities trading industry and of small interest still to those not involved with derivatives.
To those remaining, this is rightly regarded as essential reading. It is an entertaining combination of intuitive explanations, mathematical derivations, and war stories from the trading floor. Taleb’s book is one of the best at teaching derivatives concepts by heuristics rather than pedagogy; while the latter is important, the former is This book will be of zero interest to anyone not involved in the securities trading industry and of small interest still to those not involved with derivatives.
Taleb’s book is one of the best at teaching derivatives concepts by heuristics rather than pedagogy; while the latter is important, the former is indispensable.
His main fault is that it sometimes harps too hard on certain points while skimming rapidly over others that are not easily understood by those less familiar with derivatives trading. Other books are probably better introductions. But once you read those, this one should definitely be next on your list. Dec 10, Carl Yang rated it it was amazing.
Taleb is one arrogant dude who loves flooding his books with archaic words which were last employed in the English Language by Geoffrey Chauncer. But alas, Dynamic Hedging is a strong advanced text which goes through many nuanced topics.
For example, he makes some good points on managing option greeks. Some chapters I really enjoyed which are hugely important in practice that you don’t learn in any classroom: Just a warning Taleb is one arrogant dude who loves flooding his books with archaic words which were last employed in the English Language by Geoffrey Chauncer. Just a warning that you might have to read over sections multiple times before you digest ideas. For example, for american options, you can tend to think of the early exercise having some sensitivity to interest rates as rates go higher, it becomes more optimal to exercise puts and less optimal to exercise callsso in some circumstances, the early exercise provision of american option is actually an option on rates.
WileyTrading: Dynamic Hedging: Managing Vanilla and Exotic Options – Nassim Nicholas Taleb
Just some great material which makes you think hard. The structure of the book jumps over the place, but mainly Taleb is focused on options, volatility, and exotics. So not exactly a good book on vanilla rates or commodities for example.
This text is certainly one I keep as a reference guide on my desk. As a sign of its value, everytime I read it, I do learn something new. I rated it highly based solely on the excellent and juicy material but the writing style is really horrible.
Dynamic Hedging: Managing Vanilla and Exotic Options by Nassim Nicholas Taleb
Not for beginners but a great read for anyone interested hddging the deep details of trading derivatives. Sep 29, Franco Arda rated it it was amazing. Nassim in action — one can’t go wrong. Feb 25, Dmitri rated it it was ok Recommends it for: This book is only interesting for the anecdote postings that Taleb makes optionw everything else is either ego inflation or wishy-washy nonsense that doesn’t really feel like it’s in any way connected to dynamic hedging, which is what this book is about.
I know that, hedgging some managinh reason, this book became almost a ‘classic’ among option traders why??? Advanced Trading This book is only interesting for the anecdote postings that Taleb makes – everything else is either ego inflation or wishy-washy nonsense that doesn’t really feel like it’s anv any way connected to dynamic hedging, which is what this book is about. Sinclair, specifically, gives 2 chapters to hedging, oprions different approaches to formulating an optimal hedging strategy.
Dec 24, Joel rated it it was ok Shelves: I read this book when I was still studying. At that time I found it interesting because some topics were discussed in a different way than other standard references such as Options, Futures and Other Derivatives. However, I opened this book again many years later, after I had been working as a practitioner on a trading floor for many years, and found most of it utter nonsense.
In particular the paragraph about manafing risk manager enquiring about an infinite delta close to the expiration of a bina I read this book when I was still studying. In particular the paragraph about the risk manager enquiring about an infinite delta close to the expiration of a binary Feb 24, Aaron rated it it was amazing.
Not for the beginner but an excellent book. It shows you the actual mechanics of successful trading strategies and systems. You need a solid background in statistics before you attempt to tackle this book.