week 4 Finance with Python

(Comments)

Week 4: Options and Derivatives

Learning Material:

  • Day 1: Introduction to Options

    • Objective: Understand the basics of options, call and put options, and option strategies.
    • Topics: Options terminology, types, and basic concepts.
  • Day 2: Options Pricing Models

    • Objective: Learn about options pricing models like the Black-Scholes-Merton model.
    • Topics: Black-Scholes-Merton model, option pricing, and mathematical modeling.
  • Day 3: Options Trading in Python
    • Objective: Implement options trading strategies in Python.
    • Topics: Strategies, options trading, and Python libraries for options trading.
    • Code Example: Implementing a basic covered call strategy in Python.
  • python
    import yfinance as yf # Define the stock symbol and date range stock_symbol = "AAPL" start_date = "2020-01-01" end_date = "2022-12-31" # Download historical data data = yf.download(stock_symbol, start=start_date, end=end_date) # Define call option parameters strike_price = 150 expiration_date = "2023-01-20" # Simulate a covered call strategy call_option_premium = data.loc[expiration_date]["Close"] - data.loc[expiration_date]["Close"] * 0.02 # Example premium strategy_payoff = data["Close"] - call_option_premium # Visualize the covered call strategy import matplotlib.pyplot as plt plt.figure(figsize=(10, 6)) plt.plot(data.index, strategy_payoff) plt.xlabel("Date") plt.ylabel("Payoff") plt.title("Covered Call Strategy Payoff") plt.show()
    • Day 4: Introduction to Derivatives

      • Objective: Learn about financial derivatives and their use in risk management.
      • Topics: Derivatives overview, types, and applications.
    • Day 5: Exercise

      • Objective: Implement an options trading strategy in Python, analyze the results, and understand options trading principles.

    Note: Week 4 covers options and derivatives, including pricing models and basic trading strategies in Python.

Currently unrated

Comments

Riddles

22nd Jul- 2020, by: Editor in Chief
524 Shares 4 Comments
Generic placeholder image
20 Oct- 2019, by: Editor in Chief
524 Shares 4 Comments
Generic placeholder image
20Aug- 2019, by: Editor in Chief
524 Shares 4 Comments
10Aug- 2019, by: Editor in Chief
424 Shares 4 Comments
Generic placeholder image
10Aug- 2015, by: Editor in Chief
424 Shares 4 Comments

More News  »

Dignity wrapped in Charity

Recent news
4 weeks, 1 day ago

A reflection of using kanban flow and being minimalist

Recent news

Today is the consecutive day I want to use and be consistent with the Kanban flow! It seems it's perfect to limit my parallel and easily distractedness. 

read more
1 month, 1 week ago

Morning issue with car and my kind of music

Recent news
1 month, 1 week ago

Podcast Bapak Dimas 2 - pindahan rumah

Recent news

Vlog kali ini adalah terkait pindahan rumah!

read more
1 month, 2 weeks ago

Podcast Bapak Dimas - Bapaknya Jozio dan Kaziu - ep 1

Recent news

Seperti yang saya cerita kan sebelumnya, berikut adalah catatan pribadi VLOG kita! Bapak Dimas

read more
1 month, 2 weeks ago

Happy new year 2024 and thank you 2023!

Recent news

As the new year starts, I want to revisit what has happened in 2023. 

read more
1 month, 2 weeks ago

Some notes about python and Zen of Python

Recent news

Explore Python syntax

Python is a flexible programming language used in a wide range of fields, including software development, machine learning, and data analysis. Python is one of the most popular programming languages for data professionals, so getting familiar with its fundamental syntax and semantics will be useful for your future career. In this reading, you will learn about Python’s syntax and semantics, as well as where to find resources to further your learning.

read more
2 months, 3 weeks ago

Understanding Tier 1 Capital, common equeity tier 1 Capital, and risk weighted asset through asking the right question

Recent news
3 months, 1 week ago

More News »

Generic placeholder image

Collaboratively administrate empowered markets via plug-and-play networks. Dynamically procrastinate B2C users after installed base benefits. Dramatically visualize customer directed convergence without