Building an Options Trading Simulator in Python: A Comprehensive Tutorial

Learn how to fetch historical stock price data, simulate options trading strategies, and analyze option prices using Python

In this tutorial, we will explore how to use the yfinance library to fetch historical stock price data, and then build a simulator that allows users to test various options trading strategies. We will also visualize profit and loss scenarios and analyze the impact of different factors on option prices.

Options trading is a popular investment strategy that involves buying and selling options contracts. These contracts give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period. By simulating options trading strategies, we can gain insights into potential profit and loss scenarios and make more informed investment decisions.

Throughout this tutorial, we will use object-oriented programming concepts to build a comprehensive and interactive options trading simulator. We will explain Python fundamentals in a conversational manner and provide working code examples for each step of the project. By the end of this tutorial, you will have a fully functional options trading simulator that you can use to test and analyze different options trading strategies.