Options Pricing with Python: Master option pricing and apply Python to quantitative finance, trading, and risk management

Begin your professional options trading journey by learning the principles, creating methods, and using Python to thrive in the volatile trading market

Key Features

• Learn how to leverage Python programming for options trading and valuation models
• Discover risk management techniques for options trading
• Develop and execute a personalized trading plan expert with tips and tricks
• Purchase of the print or Kindle book includes a free PDF eBook

Book Description

Options pricing can be lucrative, while highly complex and risky. This comprehensive guide simplifies the world of options, offering a complete understanding of the fundamentals, more advanced strategies, and risk management techniques by leveraging Python’s flexibility and powerful libraries. Written by an expert with 28 years of experience in top financial institutions and deep expertise in derivatives, risk management, and Python-based algorithmic trading, this book provides unparalleled insights into options trading with Python, bridging theoretical concepts with real-world application.

It starts by introducing you to the underlying principles of options pricing, key terminology, and the different types of options. Laying a strong foundation for beginners, it sets the stage for more advanced strategies with detailed explanations, practical examples, and step-by-step guides on implementing options trading strategies and risk management techniques. You’ll also learn how to develop and execute a personalized trading plan, with expert tips on analyzing market trends, identifying opportunities, and optimizing your strategies.

Whether you're a beginner seeking a solid foundation or an experienced trader looking to expand your skills, this book has everything you need to succeed.

What you will learn

• Gain a comprehensive understanding of fundamentals of options in the trading market
• Learn advanced options pricing strategies with detailed explanations and real-world examples
• Acquire effective risk management techniques to mitigate potential losses and safeguard investments
• Develop personalized trading plans by analyzing market trends and identifying profitable opportunities
• Utilize Python to enhance trading strategies for informed, data-driven decisions
• Execute trades with confidence and gain skills to thrive in the dynamic options market

Who this book is for

This book is for options traders, algorithmic traders, and financial professionals who want to enhance their options pricing strategies and risk management techniques by leveraging Python programming. Basic knowledge of Python is expected.

Table of Contents

1. Introduction to Options Trading
2. Key Python Libraries for Financial Analysis
3. Options Types and Trading Fundamentals
4. Gathering and Preparing Data
5. Black-Scholes Closed-Form Pricing
6. Binomial and Trinomial Trees
7. Monte Carlo Simulation
8. Implied Volatility & Volatility Models
9. Greeks and Sensitivity Analysis
10. Exotic Options Pricing Models
11. Risk-Neutral Valuation & Numerical Methods
12. Testing & Evaluating Pricing Models
13. Real-World Case Study: FX Options
14. Real-World Case Study: Equity Options
15. Options Strategies, Portfolio Optimization & Risk Management
16. Conclusion: Best Practices AI/ML & Future Trends

Mhamed Bettaieb, a capital markets and derivatives expert, has 28+ years of experience in risk management, portfolio management, trading, and consulting. With an MSc in Finance, CFA, FRM, and NFA Series 3, he's a derivatives valuation specialist skilled in algo trading and derivatives portfolios dynamic hedging. As the Founder and CEO of Cap Bon Consulting, Mhamed has led numerous derivatives system implementations and consulted for global financial institutions. His career includes roles at Mizuho, Credit Suisse, Mitsui, Nomura, AEGON, Barclays Capital, CDPQ, Santander, Bear Stearns, MUSI, ABN, Natexis, JPM, BMO, Accenture, KPMG, NBC, and BT.