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SRC-7777/Crypto-Options-Pricing-Greeks-Explainer

sourceHugging Faceupdated 11mo agoView on Hugging Face
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App README

Crypto Options Pricing & Greeks Explainer

A "Bloomberg Terminal" lite interface for simulating crypto option prices and understanding the "Greeks" (Delta, Gamma, Theta).

Status Python

🚀 Features

  • —Heston Model Simulation: Uses Monte Carlo simulation with stochastic volatility (more accurate for crypto than Black-Scholes).
  • —Real-Time Data: Fetches spot prices from CoinGecko and risk-free rates (yields) from DefiLlama.
  • —AI Teacher: Uses LangChain + OpenAI to explain complex option Greeks in plain English.
  • —Interactive UI: Built with Dash & Plotly for a professional financial terminal look.

🛠️ Installation

  1. 1.Clone the repository:
bash
    git clone https://github.com/Soham-1827/Crypto-Options-Pricing-Greeks-Explainer.git
    cd Crypto-Options-Pricing-Greeks-Explainer
  1. 1.Install dependencies:
bash
    pip install -r requirements.txt
  1. 1.Set up Environment Variables: Create a .env file in the root directory and add your OpenAI API Key (required for the "Teacher" agent):
ini
    OPENAI_API_KEY=sk-your-api-key-here

(See `.env.example` for reference)

🖥️ Usage

Run the application locally:

bash
python app.py

Open your browser and navigate to http://127.0.0.1:8050/.

How to use:

  1. 1.Select Asset: Enter a CoinGecko ID (e.g., bitcoin, ethereum, solana).
  2. 2.Set Parameters: Adjust the target date, strike price, and option type (Call/Put).
  3. 3.Run Simulation: Click the button to run the Monte Carlo simulation.
  4. 4.Analyze:
  5. 5.View the calculated Fair Price and Greeks.
  6. 6.Read the AI Explanation of what these numbers mean for your trade.
  7. 7.Visualize the Payoff Diagram.

🧪 Testing

Run the unit tests to verify the simulation logic and API connectivity:

bash
# Run simulation logic tests
python -m unittest tests/test_simulation.py

# Run API connectivity tests (requires internet)
python -m unittest tests/test_api.py

☁️ Deployment (Hugging Face Spaces)

This project is ready for deployment on Hugging Face Spaces.

  1. 1.Create a new Space (Select Dash as the SDK).
  2. 2.Upload the files from this repository.
  3. 3.Go to Settings > Variables and add OPENAI_API_KEY.

⚠️ Disclaimer

This tool is for educational purposes only. The prices generated are simulations based on mathematical models and do not represent guaranteed market prices. Crypto options are high-risk instruments.