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

Trading Options: Iron Condor Trading Strategy In Python

The Iron Condor options trading strategy is a combination of the bull put spread options trading strategy and bear call spread options trading strategy. It is one of the simplest strategies that can be practised by traders even with a small account and can make the time decay work in your favour. It…...
Options Trading
7 min read

Long Strangle Option Strategy In Python

For all the Options lover here is a guide to Option’s long strangle strategy with an easy to follow example. You can also learn how to design a payoff chart for this strategy using Python Programming....
Options Trading
5 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....
Options Trading
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®....
EPAT Trading Projects
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...
Options Trading
3 min read

How to Use Black Scholes Option Pricing Model

In this post, we will discuss on modelling option pricing using Black Scholes Option Pricing model and plotting the same for a combination of various options....
Options Trading
5 min read

Index Arbitrage - An Automated Options Trading Strategy

In this post, we will discuss index arbitrage, an automated trading idea and the complexities around implementation of this idea without automation....
Options Trading
3 min read