A Python-based trading suggestion system that analyzes ETFs (SPY, QQQ) using technical indicators, market sentiment, options Greeks, and price data to generate potential trading opportunities.
- Real-time stock data analysis using yfinance
- Comprehensive Technical Analysis:
- RSI (Relative Strength Index)
- Moving Averages (20/50 SMA, 12/26 EMA)
- MACD (Moving Average Convergence Divergence)
- Bollinger Bands
- Average True Range (ATR)
- Stochastic Oscillator
- Volume Analysis
- Beta Calculation
- Price Momentum
- Signal Strength Metrics:
- Confirmation Score
- Indicator Group Agreement
- Signal Group Analysis:
- Trend Indicators
- Momentum Indicators
- Volatility Indicators
- Volume Indicators
- News Sentiment Analysis using VADER
- Options Analysis:
- Black-Scholes Greeks Calculation
- Delta: Probability of profit
- Gamma: Rate of change in Delta
- Theta: Time decay cost
- Vega: Volatility sensitivity
- Detailed Trade Reasoning
- Python 3.8+
- News API key (for sentiment analysis)
- Internet connection for real-time data
- Clone the repository:
git clone https://github.com/yourusername/options-trading-suggestions.git
cd options-trading-suggestions- Create and activate a virtual environment:
python3 -m venv venv
source venv/bin/activate # On Windows, use: venv\Scripts\activate- Install dependencies:
pip install -r requirements.txt- Set up your News API credentials:
- Sign up at News API
- Create environment file:
- Create a file named
.envin the project directory - Add your News API key:
NEWS_API_KEY=your-api-key-here
- Create a file named
Run the main script:
python3 trade.pyThe program analyzes SPY and QQQ ETFs using multiple factors:
- Technical Indicators:
- RSI thresholds (40/60)
- Moving Average crossovers
- MACD signals
- Bollinger Band positions
- Volume analysis
- Momentum signals
- Stochastic crossovers
- Options Greeks Analysis
- News Sentiment
- Signal Strength Analysis
=== OPTIONS TRADING SUGGESTIONS ===
Generated: 2025-02-19 07:42:30
QQQ:
→ CALL @ $539.00
→ Expires: 7 days (2025-02-27)
→ Confidence: 75%
→ Greeks:
• Delta: 0.533 (Probability of profit, >0.50 is bullish)
• Gamma: 0.031 (Higher values mean faster Delta changes)
• Theta: $-0.40/day (Daily cost of time decay)
• Vega: $0.30 (Price change per 1% volatility change)
→ Signal Strength:
• Confirmation Score: 75% of indicator groups agree
• Total Signals: 8
• Indicator Group Agreement:
- Trend Indicators: ✓ (67% strength)
- Momentum Indicators: ✓ (100% strength)
- Volatility Indicators: ✗ (50% strength)
- Volume Indicators: ✓ (100% strength)
The system uses several configurable parameters in trade.py:
- Technical Analysis:
- RSI thresholds (default: oversold < 40, overbought > 60)
- Moving Average periods (20/50 day)
- MACD parameters (12/26/9)
- Bollinger Bands (20-day, 2 standard deviations)
- Volume ratio threshold (1.5x average)
- Momentum threshold (2%)
- Options Parameters:
- Expiration window: 7-30 days
- Risk-free rate: 5%
- Default volatility: 20%
- Signal Strength:
- Confidence calculation
- Group agreement thresholds
- Signal confirmation weights
- News API free tier is limited to 100 requests per day
- Options data availability depends on market hours
- Past performance does not guarantee future results
- Technical analysis assumes historical patterns repeat
- Greeks calculations assume Black-Scholes model assumptions
- Signal strength metrics are relative indicators
Contributions are welcome! Please feel free to submit a Pull Request.
This project is licensed under the MIT License - see the LICENSE file for details.
This software is for educational purposes only. It is not intended to be used as financial advice. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Options trading involves significant risk and is not suitable for all investors.
- yfinance for stock data
- VADER Sentiment for sentiment analysis
- News API for market news
- Black-Scholes model for options Greeks calculations