Algorithmic Approach to Options Trading
International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056 Volume: 08 Issue: 05 | May 2021 www.irjet.net p-ISSN: 2395-0072 Algorithmic Approach to Options Trading Shubham Horambe1, Ketan Khanolkar1, Dhairya Dixit1, Huzaifa Shaikh1, Prof. Manasi U. Kulkarni2 1B. Tech Student, Dept of Computer Engineering and IT, VJTI College, Mumbai, Maharashtra, India 2 Assistant Professor, Dept of Computer Engineering and IT, VJTI College, Mumbai, Maharashtra, India ----------------------------------------------------------------------***--------------------------------------------------------------------- Abstract - Majority of the traders lose money whilst trading sitting in front of the screen for hours. Due to this continuous in options owing to market speculation, emotional trading and monitoring requirement, the performance of Manual Trading lack of risk management. The purpose of this research paper is is limited to the amount of time of the day the trader can to introduce an automated way of trading in options in order dedicate to trading. Other than this, Manual Trading also to tackle these problems. To achieve this, we have adopted suffers from time delays, which is the ability to execute some basic option strategies namely Covered Call, Protective trades in a small-time window. Also, for predicting Put and Covered Strangle. These strategies have been tested unprecedented non-random changes that take place in trade over a period of 5 years (2015-2019) for a set of stocks in the prices, a trader must delve into and analyze more and more U.S options market. information which is more powerful than information available on open-sources like news platforms. This is very Key Words: Options, Algorithmic Trading, Call Option, Put difficult to do for humans, as unlike computers, we can Option.
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