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henry tianleft a comment
We stumbled across a ton of academic papers about how to do this, but it surprised us that there was no readily available package, so we created our own. Using OIPD, you can: - Automatically get data from Yahoo Finance - Get probabilities like: “What’s the chance GME is above $500 by March?” - Plot beautiful charts Let me know your comments and suggestions!
OIPD - 1.0 ReleaseSee the market's expectations about a stock's future price
OIPD computes the market's expectations about the probable future prices of an asset, based on options prices.
Traditionally, extracting “risk-neutral densities” required institutional knowledge, limited to quant-desks. OIPD makes it accessible to everyone.
OIPD - 1.0 ReleaseSee the market's expectations about a stock's future price
henry tianleft a comment
Hello! My friend and I made an open-source python package to calculate forward-looking probability distributions of stock prices, based on options theory. We stumbled across a ton of academic papers* about how to do this, but it surprised us that there was no readily available package, so we created our own *For example, see paper: https://www.bankofengland.co.uk/...
OIPDProbabilities of future stock price, based on options theory
📌 Find probability distribution of future stock prices, based on options data
📌 Reflects market expectations but are not accurate predictions
📌 If you believe in the efficient market hypothesis, then this provides the best estimates of future price
OIPDProbabilities of future stock price, based on options theory