Systematic Options Trading

It is also assumed that a learner knows how to place an order to buy and sell options and concepts such as strike price, expiry date, and underlying asset

You can check out our course on Options Trading Strategies: Basics if you are not familiar with options. Knowledge of Python including pandas dataframe, and matplotlib for visualisation, for loops, would be required

You should be aware of the basics of options such as call and put options and have knowledge of the payoff from call and put options

Add stop-loss and take profit to options strategy

Analyse the sensitivity of expected profit to the historical data

Apply technical indicators to determine the exit rule for options trading strategy

Backtest options trading strategies such as butterfly, iron condor and spread strategies

Calculate the probability of profit using the lognormal and empirical distribution

Create a tool to identify the best strategy based on expected profit

Create an options screener to identify the liquid options

Evaluate the backtest performance using metrics such as Sharpe ratio and maximum drawdown

Explain the limitations of the probability of profits

List the do’s and don’ts while trading options

List the steps required to trade options systematically

Paper trade and live trade the strategy

Perform data quality checks on options data