The Delta Donut

My personal page for uploading everything data and dollars. I try to deconstruct derivatives, one smart article a time. I also post articles probability related or more general finance.

Enjoy!

Interesting Research Papers

A selection of papers that I found interesting and relevant to my research.

A Neural Network Approach to Understanding Implied Volatility Movements

This research explores how deep learning can be used to understand and predict implied volatility surface dynamics, combining traditional financial theory with modern machine learning approaches.

Tashfeen Omran
Published in Journal of Machine Learning in Finance, 2023
Computational Finance Pricing of Securities

TradingAgents: Multi-Agent LLM Financial Trading Framework

An innovative framework that leverages Large Language Models in a multi-agent setting for financial trading, exploring the intersection of AI and market microstructure.

Research Team
Published in Computational Finance, 2024
Trading and Market Microstructure Computational Finance

Volatility Smile Analysis Through the Heston Model

A comprehensive analysis of the Heston stochastic volatility model and its ability to capture the volatility smile phenomenon in options markets. The paper includes detailed mathematical derivations and empirical tests.

Research Team
Published in Journal of Derivatives, 2023
Pricing of Securities

Machine Learning for Volatility Trading

An exploration of how machine learning techniques can be applied to volatility trading strategies, with a focus on predictive modeling and risk management.

Research Team
Published in Journal of Financial Markets, 2023
Trading and Market Microstructure Pricing of Securities

A Rigorous Exploration of the BSM

A deep dive into the Black-Scholes-Merton model, examining its mathematical foundations, assumptions, and practical implications in modern markets. Includes detailed proofs and numerical examples.

Research Team
Published in Mathematical Finance, 2023
Pricing of Securities Computational Finance