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Mastering Pandas for Finance

You're reading from   Mastering Pandas for Finance Master pandas, an open source Python Data Analysis Library, for financial data analysis

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Product type Paperback
Published in May 2015
Publisher Packt
ISBN-13 9781783985104
Length 298 pages
Edition 1st Edition
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Author (1):
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Michael Heydt Michael Heydt
Author Profile Icon Michael Heydt
Michael Heydt
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Table of Contents (11) Chapters Close

Preface 1. Getting Started with pandas Using Wakari.io FREE CHAPTER 2. Introducing the Series and DataFrame 3. Reshaping, Reorganizing, and Aggregating 4. Time-series 5. Time-series Stock Data 6. Trading Using Google Trends 7. Algorithmic Trading 8. Working with Options 9. Portfolios and Risk Index

Introducing options


An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying security at a specific price on or before a certain date. Options are considered derivatives as their price is derived from one or more underlying securities. Options involve two parties: the buyer and the seller. The parties buy and sell the option, not the underlying security.

There are two general types of options: the call and the put. Let's look at them in detail:

  • Call: This gives the holder of the option the right to buy an underlying security at a certain price within a specific period of time. They are similar to having a long position on a stock. The buyer of a call is hoping that the value of the underlying security will increase substantially before the expiration of the option and, therefore, they can buy the security at a discount from the future value.

  • Put: This gives the option holder the right to sell an underlying security at a certain price within...

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