Starting from first principles, option market making is explained in straightforward English. Separate sections discuss the strategy and business of market making, how option market makers typically determine prices and how market makers look to manage option portfolio risk. Simple but detailed examples are provided throughout. Three sets of exercises, complete with solutions, are provided to test the reader's understanding.

Published by Extrinsiq, this is the third volume in the concise Advanced Options Trading Guide series. The series aims to present somewhat more advanced topics relating to options trading in a clear way with an emphasis on practice rather than theory.