I like the author's common sense approach to valuing ATM options. But I think the author's applicaton of MAD is very wrong. He confuses the MAD from mean with average of absolute price changes. When mean is zero this is irrelevant. But when the distribution mean is clearly not zero, his confusion becomes glaringly obvious. An example is Figure 5. It took me a while to work out what he was trying to do, because his calculations are so wrong.

Anyone else read the book?

haven't read the book yet but the author's other book Winner Take All is really written by a know-how trader.

thx lz for sharing :)