Gamma Exposure (GEX)
One of the most important parts of trading the market is finding an edge in the market which is sort of reliable to trade constantly. That usually involves when market participants like the market makers are being forced to buy or sell a certain asset.
Today we will discuss how we could use gamma exposure to come up with a somewhat consistent trading strategy. First of all, what is gamma exposure?
Gamma exposure is the second order price sensitivity of a certain derivative to changes in the price of its underlying security.
A big factor in market movements is the…
Support and Resistance
Support and Resistance lines are defined as certain levels of the assets price at which the price action may stop and/or reverse due to a larger number of interested investors in those price levels. They could be detected using the stock’s historical data. You could read this article for more information.
Machine Learning
The reason why I decided to use Machine Learning for this process is because it tends to be more appropriate than giving a computer a set of commands to follow using the data and executing it. With Machine Learning, the computer itself utilizes the data in order to recognize…
Black Scholes in Python by Suhail Saqan
A stock option is the right to buy or sell a stock at an agreed price and date. The two types of options used for different situations are either calls, betting a stock will increase in value , or puts, betting a stock will decrease in value (however this is not always true, discussed at the end). Each options contract represents 100 shares of that stock.
There are also two different styles for options: American and European. The calculations that will be done here are for European options.
Black Scholes Model
The Black Scholes model is…
We live in times when almost everything is automated. People no longer have to do the basic stuff which could be easily done by computers. For example, anyone could write a script to send them reports on their current stocks portfolio status or even suggestions for good stocks to buy.
“I predict that, because of artificial intelligence and its ability to automate certain tasks that in the past were impossible to automate, not only will we have a much wealthier civilization, but the quality of work will go up very significantly and a higher fraction of people will have callings…
