Second Order Greeks – Charm and Vanna
Explore the crucial roles of Charm and Vanna in options trading. These second-order Greeks provide deep insights into option delta changes with time and volatility.
Volatility Smile
The volatility smile is a graphical representation that emerges when plotting the implied volatility against the strike prices of options sharing the same underlying asset and expiration date. As the…
Volatility Smirk
A volatility smirk, a variation of the more common volatility smile, is depicted by plotting the strike price and implied volatility of options for a specific underlying asset, such as…
Mastering Hedging Greeks: Strategies for Options Success
Explore options hedging basics in this guide, where you'll learn about delta, vega, and gamma. Whether you're new or experienced, the article simplifies the intricacies of hedging Greeks in options, making it easy for everyone to understand and apply in the world of trading.
Innovative Derivatives: The World of Exotic Options
In-depth exploration of various Exotic Options, shedding light on their benefits, limitations, and the intricate methods employed for pricing!
Diversifying with Options: A Tactical Guide to Trading Strategies Part 1
A comprehensive post on various option strategies, and their applications in risk management, income generation, speculation, and flexibility. We delved into detailed payoff graphs, exploring max profit, loss, and breakeven points.
Options Strategies With Python – Part 1
Covered Call import numpy as np import matplotlib.pyplot as plt # Function to calculate the payoff of a covered call def covered_call_payoff(s, strike_price, stock_purchase_price, call_premium): # Stock payoff without the…
Exploring Implied Volatility in Depth
Introduction & Definition Implied Volatility (IV) serves as a crucial indicator in the realm of options trading, encapsulating the market's perception of potential future fluctuations in an asset's price. This…
Exploring Greeks – Vega (ν) and RHO (ρ) with Python
Option Price with Volatility import numpy as np import matplotlib.pyplot as plt from scipy.stats import norm # Function to calculate Black-Scholes option price for call and put options def calculate_option_price(S,…
Exploring Greeks – Gamma (Γ) and Theta (Θ) with Python
Relationship of Gamma (Γ) with different expiries import numpy as np import matplotlib.pyplot as plt from tabulate import tabulate from scipy.stats import norm # Function to calculate call gamma def…