Options trading may appear intimidating initially, but it is simple to grasp if you understand a few key concepts and have got the right sources. Options can enable you to generate income regardless of what the market is doing. Whether the market is bullish, bearish, or even static makes no difference.
That is exactly what this article brings you from among the countless available study aids, we've compiled a list of some of the best. The top 10 options trading blogs are listed below.
What is Driving People Towards the Derivatives Market?
Whether you have heard about Derivatives in the financial market or you are new to the term, this article should serve your purpose. For understanding the Derivatives Market and many more aspects surrounding the same, let us get an overview of the contents of this article.
Get to know Derivatives Market, size, types, and widely used types. How the Derivatives Market works, its uses & real-world current instances, tips to avoid risks.
Basics Of Options Trading Explained with Examples
Fun fact: One of the major benefits is that options allow for the systematic transfer of risk from someone wishing to hive off risk for a price to someone who is ready to accept that risk in exchange for a price.
The options world predates the modern stock exchanges by a large margin. By the end of this article, you are well versed in the options trading world along with trying out a few options trading strategies as well.
The Exotic Options!
There are 2 types of options - The Traditional Options also known as Vanilla and untraditional, experimental and also quite strange known as Exotic Options.
Everything that makes Exotic Options great or not is what you learn from this article. Get to know types, pricing, trading in Python, and the pros & cons of Exotic Options trading.
Black Scholes Model: Formula, Limitations, Python Implementation
There are a few models in this world which make the world stand up and take notice, and this is one of them.
Black Scholes Model calculates the options price given the Exercise Price, Underlying Stock Price, its Volatility, and Days to Expiry. In this article, we'll look at the Python implementation of the Black Scholes formula and its underlying assumptions.
Heston Model: Formula, Assumptions, Limitations, and More
Did you know?
The Heston option pricing model, or Heston Model, is supposed to be an improvement to the Black-Scholes model which had taken some assumptions which did not reflect the real world.
In this post, learn everything there is to know about the Heston model, including how it uses a stochastic volatility model to get around the volatility smile's drawback. Additionally, you'll comprehend how it works when pricing options.
Implied Volatility: What, Why & How!
Could future volatility be calculated in order to help us take long or short positions in options trading?
This article has got all your questions covered. The term used to characterize expected market volatility from the date when the option is bought till its expiry by market participants is known as “Implied Volatility (IV)”. This article explains the peculiar and distinct characteristics of implied volatility, its uses and applications with different trading strategies.
LEAPS Options: Introduction, Strategies, Limitations and Examples
LEAPS options are option contracts with an expiry date longer than a year. The main benefit of a LEAPS option is that a long-term investor can dabble in options without worrying about the short-term volatility of the market. It also helps investors invest less capital when compared to owning the actual stock.
With this blog, we will understand LEAPS with a few examples as well its application with a few trading strategies as well as its limitations
Swaption - An Introduction
Having an option in life is always a treat and gives us something different to look forward to.
“Swap Option” or the term swaption provides you with the option to swap financial instruments and cash flows but usually the interest rate between two parties. Moreover, there are different types of swaptions.
Explore Swaption and its trading. As a trader or a beginner, this article will provide you with useful insight into Swaption - Types, How it works, How to trade and its pros and cons.
Straddle Options Trading Strategy Using Python
Straddle options involve holding positions in both Call and Put Options with the same Strike Price, the same Expiration Date, and the same underlying asset by paying both premiums.
Gain an understanding of the Straddle Options Trading Strategy in Trading using Python and how it can be used to create your own trading strategy.
Broken Wing Butterfly Options Trading Strategy In Python
Options Trading is much more popular today compared to the yesteryears, and this has led to the creation of various types of Options trading strategies. Some have stayed, some have evolved, while some might have ceased to exist.
Butterfly options are one such type that has been practised for years by Traders. Options Traders practise a modified Butterfly Spread to gain or spike income.
Calendar Spread Options Trading Strategy In Python
The Spread family includes the calendar spread. The calendar spread has a directional bias and can be made with either all calls or all puts. This article will teach you how to create the Calendar Spread Options Trading Strategy in Python using real-world market examples.
There are numerous other blogs and tutorials available along with the free python codes to help you explore and understand various concepts of Options Trading. You can check them all out on our blog here.
We sincerely hope you enjoyed this quick look at the top 7 blogs about options trading that our readers found to be the most popular in 2022. Please comment and let us know the subjects you'd want to see us cover in blogging in 2023.
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