This code first defines the stochasticOscillator() function, which takes the closing prices, low prices, high prices, and the number of periods to use in the…

a spread refers to a strategy in which an investor simultaneously buys and sells options on the same underlying asset. There are two main types…

The Forward implied volatility is calculated using the following formula: Where F is the forward price, K is the strike price, r is the risk-free…

In John C. Hull’s book “Options, Futures, and Other Derivatives,” the author discusses several key formulas and equations that are used in the pricing and…

A function to calculate the profit probability of an iron butterfly option strategy could be written as follows: This function calculates the profit probability of…

This function calculates the profit or loss for an iron condor option strategy at a given stock price and returns the probability of achieving the…

Linear regression is a statistical technique that is used to model the relationship between a dependent variable (the variable that you are trying to predict)…

Black-Scholes formula In this function, option_type is either “call” or “put”, strike_price is the strike price of the option, underlying_price is the current price of…

Ichimoku Kinko Hyo, also known as the Ichimoku Cloud or just Ichimoku, is a technical analysis indicator that is used to identify trends and support…

To calculate the RSI index value, you need to first compute the average gain and the average loss over a specified number of periods. You…