option_skew_project_public

This repo contains the option skew project.

What is the option skew project?

This project centers on the research published in "What Does Individual Option Volatility Smirk Tell Us About Future Equity Returns?" by Yuhang Xing, Xiaoyan Zhang and Rui Zhao. Their stated option skew metric showed the ability to predict equity returns up to a 6 month lookahead.

Last year I used their skew metric as a basis for a theoretical equity long/short strategy that showed promising results. My goal here is to share and formalize my process of researching and implementing a trading strategy based on published research.

Where to get the data used?

Currently the datasets used in the notebooks for this project are too large to fit in the github repo. I have provided direct download links below:

Who to contact?

Please report bugs or issues using the issue tracker