Defintion

The IV Straddle Yield, IV Covered Call Yield, and IV Cash Secured Put Yield endpoints provide traders with an array of strategies based on options trading that targets different risk profiles and market expectations.

Details

The IV Straddle Yield endpoint offers valuable metrics about straddles for the relevant exchange. Straddles are a classic volatility trade, and this endpoint calculates the vega, theta, and the percentage of spot for each straddle, providing traders with insights into the expected volatility and potential profit of the trade.

The IV Covered Call Yield endpoint focuses on the covered call strategy, which involves holding a long position in the underlying asset and simultaneously writing a call option. The endpoint quickly returns the annualized yields of various scenarios, making it a valuable tool for traders interested in this relatively low-risk strategy.

The IV Cash Secured Put Yield endpoint addresses a low-risk strategy similar to the covered call. In this strategy, traders sell a naked put option while maintaining enough cash to purchase the underlying asset at the predetermined strike price. This endpoint promptly delivers the annualized yields of different scenarios, helping traders assess the potential returns from this strategy.

As always, we focus on data normalization and standardization to ensure consistency across different trading platforms, improving the reliability and usability of our data for informed decision-making.

API Endpoints

[HIST] IV Straddle Yield

[HIST] IV CoveredCall Yield

[HIST] IV CashSecuredPut Yield

FAQs

How is the yield for the IV Straddle Yield calculated?

The straddles are constructed by first identifying the forward/underlying price. The strike price closest to the current forward/underlying price is selected, and both the call and put will have identical strike prices. The vega and theta numbers are calculated using the Black-Scholes model, with the mid/mark price and forward price as the input parameters. The percentage of spot calculation is done by dividing the $ Value of Straddle by the Current $ Spot.

How can the IV Covered Call Yield endpoint be used for low-risk trading strategies?

The IV Covered Call Yield endpoint focuses on the covered call strategy, a relatively low-risk approach that involves holding a long position in an asset while simultaneously writing a call option. The endpoint quickly returns the annualized yields of various scenarios, helping traders assess potential returns from this strategy.

How does the IV Cash Secured Put Yield endpoint contribute to low-risk trading approaches?

The IV Cash Secured Put Yield endpoint addresses the cash-secured put strategy, which involves selling a put option while maintaining enough cash to buy the underlying asset at the strike price. This endpoint swiftly delivers the annualized yields of different scenarios, assisting traders in evaluating the potential returns from this low-risk strategy.

What measures are taken to ensure the reliability and usability of the data provided?

We prioritize data normalization and standardization across all our API endpoints to ensure consistency across various trading platforms. This approach enhances the reliability and usability of our data, providing traders with the tools needed for informed decision-making.

How do the various endpoints contribute to creating a comprehensive trading strategy?

Each of these endpoints focuses on a specific trading strategy - straddles, covered calls, and cash-secured puts. By providing real-time data and insights for each of these strategies, they enable traders to tailor their approach based on their risk tolerance and market expectations, contributing to a comprehensive and adaptable trading strategy.