Dynamic Delta Hedging vs. Static Delta Hedging
Understanding of Static and Dynamic delta hedging with Advantages, Disadvantages and Applications.
Volatility Clustering
This blog covers the phenomenon of volatility clustering in financial markets, its causes, and its significance for risk management, asset pricing, and portfolio management.
Numerical Methods in Finance
Numerical methods and their uses in finance.
Second Order Greeks – Veta and Vomma
The critical roles of Veta and Vomma in options trading. These second-order Greeks offer profound insights into how option Vega changes with time and volatility
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…
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…
Data Science for Financial Markets
Data science is the field of study and practice that involves collecting, processing, analyzing, and deriving valuable insights from data to inform decision-making and solve complex problems. In the realm…
Historical and Implied Volatility
Historical Volatility Historical volatility is a statistical measure that quantifies the extent to which the price of a financial instrument has varied throughout a specified time interval. It is determined…
Var Approaches
This article provides a detailed exploration of three different approaches for calculating Value at Risk (VaR) – Historical, Variance-Covariance, and Monte Carlo Simulation. The analysis is based on Nifty data…