How to use python ibpy to get Greeks?

Discussion in 'Automated Trading' started by Erick Gomez, Jul 11, 2015.

  1. Butterfly

    Butterfly

    I think you need an additional subscription from IB to get the Greeks

    regardless, greek result will be based on some assumptions that the market is making, and that means it could be mispriced

    when you look at options, the bid/ask volume is so unstable, that you know participants have no clue of what they are doing and simply testing the "market", so the greeks from the "market" are not going to tell you much, worse, it will take you into the death spin of market mispricing and bad decision making (over-reaction)

    and the BSM is a big joke, see Taleb interesting article about it, it's all about Put-Call Parity, not the academically flawed BS Model.
     
    #11     Jul 16, 2015
    Erick Gomez likes this.
  2. Well I wouldn't say it's a joke necessarily. It's an estimate based on certain assumptions so it's taken with a grain of salt.
    For American stock options you wouldn't use Black Scholes anyway; Bjerksund Stensland gives a more correct estimate.
     
    #12     Jul 16, 2015
    Erick Gomez likes this.
  3. Butterfly

    Butterfly

    it's based on too many assumptions that have no connection with reality, so use BSM to price your options and you will be sorry for it

    a better approach is the arbitrage approach promoted by Taleb, that is the Put-Call parity
     
    #13     Jul 16, 2015
  4. Yep you need to pay a month to get market data depth for options in Interactive Brokers. Well it is 3 times cheaper than getting it from ivolatility.com

    I will take a look on Taleb Put-Call Parity
    Thanks
    EG
     
    #14     Jul 16, 2015