Options Trading Strategy Project

Overview

This project focuses on developing and implementing advanced options trading strategies like butterfly, stradle etc. , including pricing models, risk management, and backtesting.

Key Features

Option Pricing Model

• Developed using Monte Carlo simulations and Black-Scholes model
• Proposed a comprehensive risk management plan

Jarrow-Rudd Binomial Tree Model

• Implemented the Jarrow-Rudd binomial tree model
• Applied butterfly spread option strategy
• Created payoff diagram for profit analysis

Technical Analysis and Backtesting

• Performed technical analysis to identify optimal strategy application timing
• Conducted extensive backtesting using Backtrader library

Technologies Used

• Monte Carlo simulations
• Black-Scholes model
• Jarrow-Rudd binomial tree model
• Butterfly algorithm
• Straddle Strategy
• Q-learning
• Reinforcement Learning
• Backtrader library

Future Improvements

• Improve the return of strategy
• Develop a user interface for easier strategy visualization

Contributors

Zaid