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I'm new to quantitative trading, with good knowledge in finance and coding (mainly Python, Java, R, etc).

I would like to know if there are any basic quantitative option trading strategies that can be coded in Python.

I have a basic understanding of statistics, L.Algebra and Machine learning. Are there any basic options trading strategies that can get me started in quant trading.

Thanks!

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  • $\begingroup$ Food for thoughts: quant.stackexchange.com/questions/41695/… $\endgroup$
    – Lisa Ann
    Commented Apr 21, 2019 at 0:57
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    $\begingroup$ If you are interested in doing a programming project about options for learning purposes you might consider doing a simulation of a delta-hedged option, using actual stock price data. You could investigate how the hedging error varies with re-hedging frequency, with the assumed volatility, etc. $\endgroup$
    – nbbo2
    Commented Apr 22, 2019 at 1:59

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There are lot of strategies. You can try for example:

Try to google more, or look for strategies on ssrn.com or arxiv.org ...

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If you have a good understanding of call option, put option, options greeks and volatility, then you can try some of these strategies:

  1. Covered call/put
  2. Bull/ Bear spread
  3. Strangle
  4. Straddle
  5. Butterfly spread
  6. Iron condor

Intermediate

  1. Calendar Spread

Advanced

  1. Dispersion trading (Correlation trading)
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