I'm a cs major trying to make an options trading bot as a side project over the summer. I would like some advice on which of these strategies to go with, as I have limited knowledge related to options.
1) Shorting volatility on stocks with a wide spread between implied volatility and realized volatility.
2) Doing long call spreads on stocks with a narrow spread between implied volatility and realized volatility.
3) Going through option chains for stocks to find potentially mispriced options using the Black-Scholes model or Binomial distribution for American options.
Which of these options strategies would you recommend for an options trading bot?
byu/Wooden-Ingenuity2101 inoptions
Posted by Wooden-Ingenuity2101
1 Comment
All these sound quite complicated. I don’t think I’d choose any of these to trade on, over many other easier/simpler strategies.
May I recommend checking out TastyTrade’s YouTube channel – they have a lot of option strategies that you can choose from, that folks also use regularly.