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Rating: 
Summary: Interesting and offensive¿
Review: From the derivative trader's point of view, there are three main ways to characterize this book :1. On the technical side, the book explains new and refreshing aspects of options that every risk manager, who never actually traded exotic options, should read to understand the trader's "situation" when it comes to hedge a portfolio. Part II clearly describes the core aspects of plain vanilla options. Chapter 9, on Vega and volatility surface is well written, but could have been more precise on examples. Part III correctly outlines binary and barrier options and one feelt that Taleb was a currency option trader ! Some "wizards" are very true (p.60, on the Burnout of traders) and some, like the "risk management rules", are pure conceptions of the author without bringing anything new. 2. The editor could have been more careful with the reader's comfort, the charts are often two pages away from the written descriptions, the notes refer to pages at the back of the book, etc... 3. The author is sometimes so pretentious that it becomes very irritating and actually damages the quality of the book. It seems very obvious that Taleb has a wrong understanding of modern risk management. Today's (good) risk managers are sometimes ancient derivatives traders, they are mathematically and financially skilled people, they are part of the financial landscapes taking part actively in the management of positions. This book contains some good real life analogies, but the others are regrettably offensive. This books stays a good book to read and to recommend
Rating: 
Summary: A book long overdue
Review: It is nearly impossible to write a book that is both mathematically rigorous and sufficiently down to earth to be accessible to the professional trader. This book is a step in the right direction. It maintains the mathematical accuracy and depth without bogging the reader down with technical derivation of formulae. At the same time, it is written by a trader whose experience in the real market compels him to constantly question the 'nice' assumptions used to derive these formulae. Taleb is first a market practitioner who uses models and pricing formulae to enhance trading and not the other way around. If there is a discrepancy between theory and reality he doesn't blame the markets. The book is very personal and leaves no doubt what the author's opinion is on VAR, continuous hedging and other sacred cows of modern finance. The debacle in the financial markets in 1998 and the apologetic excuses by famous traders and theoreticians indicates that there is more than a grain of truth in Taleb's skepticism. The importance of this book is that whether one agrees or disagrees with Taleb, it forces the reader to question his basic assumptions and rethink common truths. The book is unique: it is stylish, philosophical, literary, and if one may say so of a hardcore financial book - it is very entertaining.
Rating:
Summary: Real book for traders
Review: really great to figure out the intricacies of options. if you need something more conventional just get hull; this book is by someone who does it for a living and has different intuitions than what you get in the ivory tower.
some of the points are great but may need more updating
Rating: 
Summary: Great book - BUT so many mistakes
Review: this book has helped me in NUMEROUS interviews over the years... it is a book that always keeps me fresh... HOWEVER, thank god i have a solid background in derivatives - otherwise, the 107 errors i found (mathematics, definitions, explanations, etc) would have driven me to a point of complete confusion... NEVER have aloof traders edit your book - get someone who understands derivatives and is separated from the world of day-to-day trading... this book could have been the bible of understanding the risks in options - including exotic options... instead, it is just a good book... well done Taleb... but could you have been more slack with the editing?
Rating:
Summary: novel
Review: Yes, this book could use an editor - there are all sorts of errors everywhere. While it makes the reading pretty tough, I think this is really one of the most useful books on options around. It's a little like Campbell/Lo/MacKinlay's book on empirical finance, but with a more experienced and real-life perspective. It's a bit refreshing after all the copycat books on option pricing that still don't contribute much beyond what Hull has written. No question, top 5 in practical finance reading.
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