This package is a lightweight library written entirely in Python, designed to provide quick evaluation of option strategy ideas.
The code produces various outputs, including the profit/loss profile of the strategy on a user-defined target date, the range of stock prices for which the strategy is profitable (i.e., generating a return greater than $0.01), the Greeks associated with each leg of the strategy using the Black-Sholes model, the resulting debit or credit on the trading account, the maximum and minimum returns within a specified lower and higher price range of the underlying asset, and an estimate of the strategy's probability of profit.
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The easiest way to install OptionLab is using pip:
pip install optionlab
You can access the API documentation for OptionLab on the project's GitHub Pages site.
Contributions are definitely welcome. However, it should be mentioned that this repository uses poetry as a package manager and git hooks with pre-commit to customize actions on the repository. Source code must be formatted using black.
This is free software and is provided as is. The author makes no guarantee that its results are accurate and is not responsible for any losses caused by the use of the code.
Options are very risky derivatives and, like any other type of financial vehicle, trading options requires due diligence. This code is provided for educational and research purposes only.
Bugs can be reported as issues.
