A covered call is used by an investor to make some small gain while holding the stock. Mostly the reason why a trader would want to create a covered call is because the trader is bullish on the underlying stock and wants to hold for long-term, but the stock doesn't pay any dividend. The stock is expected to go up over a period of next 6 months, and in the meantime, you would want to use this stock as collateral and sell some call and pocket the premium. But there is a risk to the strategy, that is, if the stock goes up then your stock would get sold off at expiry. So, instead of waiting for th ..read more

In the dynamic world of finance, where opportunities and risks intertwine, options have emerged as a versatile tool for traders seeking to navigate the market with precision. Among the myriad strategies available, the straddle option stands out for its simplicity and potential for maximising returns. At its core, a straddle options strategy involves the purchase of both a call and a put option with the same strike price and expiration date. This dual-pronged approach allows traders to capitalise on significant price movements in either direction, irrespective of whether the market moves up or ..read more

Navigate the intriguing landscape of options trading with a specific focus on covered calls – a potent tool in the hands of traders. Options trading can be perceived as a complex concept, often deterring newcomers from delving deeper. However, with the right knowledge the concept will be much simpler to understand. In this blog, you will learn the fundamentals of covered call strategies, offering insights that are both practical and accessible. We will also be discussing the covered call strategy in Python to help you with visualising the strategy graph with the Python code. Throughout this jo ..read more

Don't be deceived by the past. In the rapidly evolving domains of data science and financial machine learning, quicker calculations and more effective processing techniques are becoming more and more important. These days, a new set of open-source software libraries called RAPIDS is gaining popularity. RAPIDS leverages GPU capabilities to expedite data science tasks. This post will look at every aspect of RAPIDS, including its libraries, hardware specifications, setup guidelines, useful applications, and drawbacks. Last but not least, as usual, I'm going to offer a trading strategy based on th ..read more

About the Workshop In this dynamic era of technological innovation, where Artificial Intelligence reshapes industries at an unprecedented pace, the landscape of trading undergoes a profound transformation. During this workshop, industry experts will impart valuable insights and delve into the intersection of AI and trading, exploring the strategies, opportunities, and challenges that await us. Join us for an engaging day of learning, networking, and hands-on experience as we navigate the complexities of AI-powered trading, empowering ourselves with the knowledge and insights needed to stay ah ..read more

Imagine a world where you can predict market movements with uncanny accuracy, where gut feelings give way to data-driven insights, and where every trade is a calculated step towards profit. This, my friend, is the alluring promise of machine learning in trading. Among the many algorithms vying for dominance in this arena, logistic regression stands out as a versatile and beginner-friendly tool. But how exactly does it work in the world of trading? Think of Machine learning logistic regression as a binary classifier. It analyses mountains of historical data – prices, volumes, indicators – and l ..read more

Welcome to the intricate world of financial derivatives, where instruments like swaps and swaptions play a pivotal role in shaping risk management strategies and influencing investment decisions. At the heart of these instruments is the concept of exchanging cash flows, primarily centred around interest rates. Having an option in life is always a treat and gives us something different to look forward to. “Swap Option” or the term swaption provides you with the option or the right but not the obligation to swap financial instruments, cash flows but usually the interest rate between two parties ..read more

Value at Risk (VaR) serves as a crucial tool in the financial landscape. This statistical measure quantifies potential losses in portfolios over a specified time horizon, offering a tangible understanding of risk with a defined level of confidence. And this comprehensive guide not only provides an introduction to value at risk but a lot more that will help you dive into it. From optimising portfolios to regulatory compliance, VaR finds widespread application. However, the journey with VaR is not without challenges, including assumptions and oversimplified views. Looking forward, promising tren ..read more

This project is about comparative study of time-series analysis techniques and ML techniques from the perspective of Stock/Index price prediction. Initial analysis was conducted using time-series modelling techniques eg. ARMA, ARIMA, etc. followed by the analysis of different ML models to predict the next day stock/index price. After extensive theoretical study of different ANN models and based on input from a mentor, the LSTM model was finalized. Different optimization parameters and techniques on various evaluation criteria e.g. accuracy and precision were analyzed. Both the prediction techn ..read more

Seasonality is a fascinating phenomenon in the world of stock trading. It refers to the predictable patterns and trends that occur in the financial markets at specific times during the year. In this comprehensive blog, we'll explore the core concepts and practical aspects of seasonality trading. In this blog, we will cut through the complexities of predictable market patterns and arm you with actionable strategies for navigating the financial landscape. If you've ever pondered the cyclical nature of stock prices and the strategic advantages they offer, you're in the right place. In this blog ..read more