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

Mastering Implied Volatility: From Basics to Python Calculations

Explore the intricacies of implied volatility in financial markets with this blog. Uncover the definition of implied volatility, its significance in options, practical applications and much more. Master the art of navigating implied volatility with our comprehensive guide....
17 min read

Basics Of Options Trading Explained

Options are one of the most popular derivatives that are traded in the stock market. With this blog, you will learn all the characteristics that are important for any beginner before starting options trading....
9 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

Synthetic Long Put Options Trading Strategy In Python

Synthetic Long Put Trading Strategy is a type of Options Trading Strategy created by combining of short stock position with a long call of the same series....
Options Trading
6 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....
Options Trading
8 min read

Diagonal Spreads Options Trading Strategy In Python

Diagonal Spread Strategy is a two-step Options trading strategy that combines bits of both Long Call Calendar Spread and Short call Spread....
Options Trading
6 min read

Jade Lizard Options Trading Strategy In Python

This article explains the creation and execution of a Jade Lizard Strategy. Jade Lizard is a neutral or bullish and custom trading strategy....
Options Trading
8 min read

Bear Call Ladder Options Trading Strategy In Python

Bear Call Ladder aka Short Call Ladder is an extension to the Bear Call Spread. Although this is not a Bearish Strategy, it is implemented when one is bullish....
Options Trading
7 min read

Trading Options: Long Combo Trading Strategy

I have covered the complete steps to implement long combo trading strategy in Option trading. This posts also includes a sample which will make it easier for you to understand how to practice this strategy. As a bonus I have also shared the Python code to evaluate payoff at different stock prices....
Options Trading
4 min read

Broken Wing Butterfly Options Trading Strategy In Python

Broken Wing Butterfly is the same as a Butterfly Spread wherein the sold spread is typically wider spread than the purchased spread. Read all about it here....
Options Trading
8 min read

Iron Butterfly Options Strategy In Python

The Iron Butterfly Trading Strategy is a part of the Butterfly Spread Options and a combination of a bull spread and a bear spread....
Options Trading
6 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...
Options Trading
5 min read

Collar Options Trading Strategy In Python

Learn implementing Collar Options Strategy which acts as an additional Protective Put to collar the value of a security position between 2 bounds....
Options Trading
8 min read