Options Tools
Explore tools for pricing, risk management, and trading strategies to master option contracts.
Option Pricing Techniques
Option Pricing (Binomial Trees)
Analyze option prices using step-by-step binomial models:
- Step-by-step valuation using the binomial model
- American vs European options in the binomial framework
- Incorporating dividends into the binomial model
Option Pricing (Black-Scholes)
Use the Black-Scholes model to price options:
- Closed-form solution for European options
- Impact of volatility on option pricing
- Application to different asset classes
Option Pricing (Monte Carlo)
Simulate option prices using Monte Carlo methods:
- Simulation-based option pricing
- Handling path-dependent options
- Convergence and accuracy improvements
Option Sensitivities and Risk Management
Greeks
Understand how option prices react to market changes:
- Delta, Gamma, Vega, Theta, and Rho explained
- Managing risk using the Greeks
- Second-order Greeks and their implications
Equity Hedging with Options (Under Construction)
Use options to hedge equity portfolios:
- Delta-neutral hedging strategies
- Portfolio insurance using options
- Changing portfolio beta with options
Trading and Strategy Implementation
Trading Strategies Involving Options (Under Construction)
Explore popular trading strategies:
- Bull and bear spreads
- Straddles, strangles, and butterflies
- Using options to hedge against market volatility
Exotic Options (Under Construction)
Learn about complex option structures:
- Barrier, lookback, and Asian options
- Path-dependent options and their pricing
- Exotic options in FX and commodity markets
Visualization and Analysis
Graphs (Under Construction)
Visualize option behavior and strategy outcomes:
- Profit and loss diagrams for different strategies
- Sensitivity of option price to changes in underlying asset
- Real-time tracking of option performance
Scenario Analysis (Under Construction)
Analyze how options perform under different market scenarios:
- Stress testing options under extreme market conditions
- Impact of changes in volatility and interest rates
- Comparing implied and realized volatility