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options_math

Research repository for the mathematics of financial markets, centered on options. The thesis:

An option chain encodes the market's entire risk-neutral probability distribution for a stock's future price. Options carry more information about a stock than its own price history does.

Goal: build, in C++, a multi-model predictive-distribution engine for a stock's near-future price — an expected price with honest uncertainty bands, not a single guessed number, by combining the option-implied distribution with calibrated structural models and showing where they agree and disagree.

This is personal, educational quantitative-finance research. Not investment advice. Mathematics-first; chart indicators (RSI, MA crossovers, etc.) are explicitly out of scope.

Status

Theory + roadmap phase. No C++ written yet. The mathematical path and the C++ build order are specified in docs/curriculum.md.

Documentation

File Purpose
CLAUDE.md Authoritative project reference, conventions, division of labor, OptionWatch data source
AGENTS.md Agent execution protocol and scope
docs/curriculum.md 8-part options-centric math path + 11-step C++ roadmap

Materials (study source notes)

File Topic
materials/perfect-portfolio.md Markowitz mean-variance / efficient frontier (video summary)
materials/black-scholes-history.md Bachelier → Brownian motion → Black-Scholes-Merton (video summary)
materials/quant-next-playlist.md Rigorous breakdown of the Quant Next "Option Pricing and Risk Management" playlist (10 topics, stochastic calculus → Breeden-Litzenberger)
materials/american-options-binomial-tree.md Pricing American options on a CRR tree (early-exercise backward induction)

Data

Option chains are fetched in C++ from the public OptionWatch API — the same source used by the operator's separate options_analysis Python library. Endpoints and rules are documented in CLAUDE.md → "Data source". No API key; no synthetic data ever substituted for a failed fetch.

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Mathematics of options in C++ — a multi-model engine for option-implied, risk-neutral stock-price distributions with honest uncertainty bands.

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