Option Volatility & Pricing by Sheldon Natenberg (1994, Hardcover, Updated)

This book was recommended to me by my options broker as THE book to read for understanding stock/index options trading. Having taken options training classes in the past, my eyes were opened by the different slant this book presents in trading theory. This book was written from the perspective of the broker/dealer/clearing-house, which is essentially the reverse of the traditional retail options trader (i.e., me).
The chapters on volatility are fantastic. I have never read such clearly written descriptions of details behind the various types of volatility. It all makes sense, afer reading this book.
I have to "unlearn" some of what I was taught, but I understand that is necessary for the serious options trader.
Although last published in 1995, my broker advises me that this book is still accurate. In particular, he worked in the CBOE pits until recently, and when assigned a new associate, he would give the associate a copy of the book, tell him to go away and read it for 2 weeks, and come back. This statement was sufficient for me to track down a copy of the book and buy it. Thank goodness for eBay.