Not planning to do a book review here, but purchased this book and a bit disappointed to be honest. Derman is clearly a very respectable quant with major contributions on his name, but the book itself contains few, if any, new results. Also, some chapters such as the one on arbitrage bounds on the smile are very thin. From that perspective the books by Alan Lewis, Bergomi and Gatheral are still the most interesting. That said, Derman's book is fine to get a practical feel for volatility and fills the gap between the basic books and the more advanced texts.