Regarding excel data used

AI & Machine learning
1

Hi Team ,



In "Options Trading Strategies In Python: Advanced" ,  Section 3: Machine Learning----> Options Price Prediction Using Decision Tree



The "Nifty_ML_data.csv" does not contain any data for the Expiry month . It only contains data till pervious month of the expiry date.



For example . If the expiry date is "23-02-2017" , then he data is taken only upto "24-01-2017" . any specific reason for this .



Do i need to caputre in the same way to predict the option prices in current scenario. 



Thank you !!!

With Warm Regards

Nandagopal

2

Hi Nandagopal,



As you might be aware, options contracts tend to become extremely volatile when they are closer to expiry.



Thus, in the above notebook, we have only considered the options contracts which have at least 30 days or more days remaining until the expiry date.



I hope this clarifies your query.

 

3

Thank you !!! One more doubt , so i need to take all the traded days for that particular expiry , even if is has only opening and high , low are 0. Is my understanding correct .





Thank you !!!

With Warm Regards

Nandagopal

4

Hi Nandagopal,



Could you please elaborate a bit more on this?

Because I'm afraid, I do not have enough clarity yet, to give you an answer right away.



Also, I have a question for you.

Are you currently using the same dataset that has been provided within the course?

Or, are you referring to the use of another similar dataset, in your comment above?



Looking forward to helping you out!

5

Hi Kevin ,



Thank you !!!

I am Trying To use Market data for Nifty 50 and its Constituents . For individual Stocks , the Options trading starts 2 months before with some of the days with only closing prices meaning "No Trading " on that day .



So just got a doubt whether we need to include those days also .





Thank you!!!



WIth Warm Regards

Nandagopal

6

Hey Nandagopal,

The options contracts corresponding to Indian stocks, often lack liquidy. 

Thus, as you mentioned, there may exist some entries that only specify the close price, on a given date.



Do check for the corresponding volume entries, if those are 0, then it clearly indicates that the said option contract was not traded on the particular date.



Usually, if the option contract was not traded, the high and low values would be the same as the close price corresponding to the given date.



You can however include these entries, as in most cases, you will only be working with the close prices and the volume data, for the purpose of your analysis.



Hope this helps!



Regards,

Kevin

7

hi Kevin,



Thank you very much!!!



with warm regards 

Nandagopal