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Options Trading - Quick simple question - I'm a newbee

All, I really don't have a lot to say. I'm new and I am pretty excited to join your community.

I had one simple question and I am sure there is a wealth of information on this site, but I figure I'd ask straight out and see what comes back.

Can I formulate an Options Trade - For hypothetical and simplicity I only want to do "Call" Options.

Can anyone show me a simple way to structure an options trade for say Apple?

At X Price, buy this much - Once i hit x percent, sell it, before X date (Strike date).

I'd appreciate any feedback you might have, even if it's "GET OFF OUR SITE".

Thanks much

JB

5 responses

As of now Quantopian only offers equity trading. However, I think it would be fairly easy to hack something together for the sake of backtesting.

For simplicity, say it's a European call, I guess you could calculate the Black-Scholes price and buy at time i. Then down the line at e.g. time i+90 (days) you could see if you would get a positive payoff, i.e. max(S-K, 0) > 0 and in that case submit an order.

Actually Pandas can be used to fetch options prices from Yahoo! Finance (see http://python4econ.blogspot.hk/2013/02/building-stock-options-historical.html), but I don't think it's possible to get historical option prices anywhere for free. Thus, you might have to stick with your Black-Scholes price (even though the option you calculate might not be available in real life).

This gives me a good lead Morten. Much appreciated.

Optionstack.com, but the paid version is quite pricey for individual/ beginner quants

Is trading in options included now?

Stringing together an option price series is no simple task. And calculating simulated option prices is pointless unless you can approximate the volatility smile. I have quite a few jupyter notebooks on my website and my gist on both these topics. Plus a couple of systems.