Option Market Making : Trading and Risk Analysis for the Financial and Commodity Option Markets (Wiley Finance)

Rating:
Summary: Excellent work
Review: Although this book is not for beginners, it doesn't contain any formulas. Instead it focuses on all the complex aspects of making a market for options. I've read this book over and over again on a regular interval to remind me on the way market makers do their practice, and how to avoid the pitfalls in trading against specialists.

Rating:
Summary: Best introduction to options
Review: I highly recommend this book for a basic, clean, non-pretentious presentation of option trading from a market maker's point of view. Baird can also write English: very clear, linear, simple prose. The man has no axes to grind or ego trips to take, and he knows what he's talking about, and gives very practical advice.

Rating:
Summary: Excellent read for the high-level ops trader
Review: Not for the speculative trader. Baird explains neutrality and hedging scenarios in great detail. Explains some esoteric concepts rarely discussed, such as time spread risk and delta drift. Very succinct explanation on arb spreads and combos, and the tendency to trade to the pin at expiration. Highly recommended.