Options Trading

A series of tutorials on Options Trading including definitions, Options Pricing Models, Option Greeks, different trading strategies with free downloadable codes and data such as Dispersion trading, Index Arbitrage and more.

Top Picks

Heston Model: Options Pricing, Python Implementation and Parameters

Find out the intricacies of the Heston model: its formula, assumptions, and limitations with this guide. Gain knowledge of volatility dynamics and pricing in options trading and unveil insights into stochastic volatility modelling....
13 min read

Black Scholes Model: Formula, Limitations, Python Implementation

Black Scholes Model computes the options price given the Exercise Price, Underlying Stock Price and its Volatility as well as Days to Expiry. We will see the Black Scholes formula, assumptions and Python implementation....
10 min read

Options Trading

The Exotic Options!

Everything that makes Exotic Options great or not is what you learn from this article. Get to know types, pricing and trading in Python, pros & cons of Exotic Options trading....
13 min read

Black Scholes Model: Formula, Limitations, Python Implementation

Black Scholes Model computes the options price given the Exercise Price, Underlying Stock Price and its Volatility as well as Days to Expiry. We will see the Black Scholes formula, assumptions and Python implementation....
10 min read

LEAPS Options: Trading Strategies, Limitations and Examples

LEAPS options are option contracts with their expiry date longer than a year. 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....
8 min read

Trading Index Options Based On Index Momentum [EPAT PROJECT]

This article is a project work that talks about trading index options and how to set up and study an Index Option trading model based on the Index’s momentum....
10 min read

Bear Spread Options Trading Strategy In Python

A bear spread is an option spread strategy opposite to that of a Bull Spread when the price of the underlying security is expected to fall. Learn more about this strategy with example in this post....
8 min read

Bull Call Spread Strategy

We cover basics of Bull Call Spread Option strategy, includes a bonus Python code and Excel model and shows how to implement this strategy using a live example...
5 min read

Butterfly Spread Options Trading Strategy In Python

This article talks about Butterfly Options Strategy, a combination of Bull Spread and Bear Spread, a Neutral Trading Strategy and has limited risk options....
7 min read

How To Model Volatility Smile In Python

This article will take you through the origin and implications of Volatility Smile. Also, learn how to plot the Volatility Smile curve in Python by analyzing the assumption in Black Scholes Model (BSM), the underlying’s daily returns and lognormal distribution....
5 min read

Dispersion Trading Using Options [EPAT PROJECT]

This article explains the Dispersion Trading Strategy coded in Python and has been authored by Jayesh Kurup as part of the EPAT™ coursework at QuantInsti®....
6 min read

Long Call Butterfly Strategy on Python

Write a Long Call Butterfly strategy on Python Programming Language. It is a popular strategy deployed by traders when little price movement is expected...
3 min read