To use this indicator, just click on the link, then there should be a button that says "Use on Chart" located just to the bottom left of the image of the chart. Click that button, and it should open up a TradingView chart with the indicator active. Just switch the ticker to GME (if it isn't already on it) and you should be good to go. To edit settings, right click on the indicator name and there should be a settings option. You can turn on/off different lines and play around with the numbers a bit.
If you have any suggestions for improvements, please let me know and maybe I can implement them :)
If you really want to move on to something more professional (TV is fine to start, but pine-script is sh\**), learning programming languages like Python is practically mandatory in finance for:
Data Analysis
Data Science
Quantitative Modeling
Portfolio Optimization (MPT)
Strategy Automation (algos)
Risk Management (VaR, CVaR, Kelly criterion, etc)
Financial Modeling (FS)
Machine Learning
Backtesting
etc, etc
Python is the go-to language for this.
Even in the industry, Python is highly used. For example in the Bloomberg Terminal, the industry-standard platform, they have BQuant [Bloomberg Lab].
Of course, Bloomberg services cost more than 30k per year :P But Python is free and has a big community and educational content. You also have free platforms, like:
How are you calculating the theoretical price with regards to the fact that the strike and duration can be changed? Also how are you factoring in the fact that an exercised warrant creates a new share and implies dilution? How are you factoring in the fact that an exercised warrant increases the cash on hand for the company?
Or are you just comparing a clean black scholes formula for an option that expires at a fixed time?
What I'm trying to figure out is if you are comparing how warrants are trading vs how an equivalent option should be trading, or if you're comparing how a warrant is trading vs how a warrant with a possibly changeable duration and strike that creates a new share and increases the company's cash on hand should be trading?
If the former, I'm not really sure this is useful for gaining any real insights. Obviously a warrant with changeable duration and strike should trade at a premium to a simple option.
If the latter, what formula are you using for the idealized warrant price with variable expiration and strike, as well as dilution and cash on hand changes, to represent the idealized version of how such warrant should be priced?
Right now, it uses black schools with a few mods. First, you can enter in the number of warrants outstanding so it can compensate for the amount exercised. For the time aspect, it uses the current expiration date next October to calculate the time decay factor.
You can manually adjust the date and there are multiple options for calculating volatility. First, it checks it against an equivalent option.
You can also not do that and it calculates it based off other volatility formulas. Each has pluses and minuses since pricing theoretical price exactly is pretty impossible.
For cash on hand, that is a completely irrelevant number for warrant pricing.
I do find the question of the cash on hand to be interesting because obviously if most warrants get exercised the company ends up with more cash on hand which will increase their interest income and (in my opinion) should push up the value of both the stock and the warrant. If I knew half of the warrants were already exercised I would factor the extra billion dollars into cash that can yield interest. But I realize this isn't actually an input into warrant pricing or options pricing.
The issue with cash on hand is that it simply doesn’t have any part in calculating price for warrants. It is really only beneficial for valuation of the company as a whole, which would impact the underlying (GME) and not the warrants themselves
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Since some people don't know how to click image links in posts, here is the link again.
https://www.tradingview.com/script/QgqPjDmM-GME-Warrant-Tracker-theUltimator5/
To use this indicator, just click on the link, then there should be a button that says "Use on Chart" located just to the bottom left of the image of the chart. Click that button, and it should open up a TradingView chart with the indicator active. Just switch the ticker to GME (if it isn't already on it) and you should be good to go. To edit settings, right click on the indicator name and there should be a settings option. You can turn on/off different lines and play around with the numbers a bit.
If you have any suggestions for improvements, please let me know and maybe I can implement them :)
Appreciate all your posts!
Excellent work as always
https://preview.redd.it/ah4vy0b2008g1.jpeg?width=784&format=pjpg&auto=webp&s=a3b5a3d8140170d2a92c23dba2e18a642a810f11
At this point I think u work for TradingView, so many interesting indicators that I can't use with my free account :D
Learn Python :D
TradingView is okay (for crayons :P) but it has major limitations with indicators and more importantly, with quantitative models.
Is it possible to learn this power, mr. Quant?
If you really want to move on to something more professional (TV is fine to start, but pine-script is sh\**), learning programming languages like Python is practically mandatory in finance for:
Python is the go-to language for this.
Even in the industry, Python is highly used. For example in the Bloomberg Terminal, the industry-standard platform, they have BQuant [Bloomberg Lab].
Youtube Shorts Videos:
Of course, Bloomberg services cost more than 30k per year :P But Python is free and has a big community and educational content. You also have free platforms, like:
All with free tier for learn and practice Python.
Python Libreries for Data → My Github 'Stars ⭐' Lists :D 👀
You will find all of these Python libraries/dependencies on GitHub; you install them and that’s it, ready to run :P
Thank you so much!
Fucking legend
How are you calculating the theoretical price with regards to the fact that the strike and duration can be changed? Also how are you factoring in the fact that an exercised warrant creates a new share and implies dilution? How are you factoring in the fact that an exercised warrant increases the cash on hand for the company?
Or are you just comparing a clean black scholes formula for an option that expires at a fixed time?
What I'm trying to figure out is if you are comparing how warrants are trading vs how an equivalent option should be trading, or if you're comparing how a warrant is trading vs how a warrant with a possibly changeable duration and strike that creates a new share and increases the company's cash on hand should be trading?
If the former, I'm not really sure this is useful for gaining any real insights. Obviously a warrant with changeable duration and strike should trade at a premium to a simple option.
If the latter, what formula are you using for the idealized warrant price with variable expiration and strike, as well as dilution and cash on hand changes, to represent the idealized version of how such warrant should be priced?
Right now, it uses black schools with a few mods. First, you can enter in the number of warrants outstanding so it can compensate for the amount exercised. For the time aspect, it uses the current expiration date next October to calculate the time decay factor.
You can manually adjust the date and there are multiple options for calculating volatility. First, it checks it against an equivalent option. You can also not do that and it calculates it based off other volatility formulas. Each has pluses and minuses since pricing theoretical price exactly is pretty impossible.
For cash on hand, that is a completely irrelevant number for warrant pricing.
All fair points.
I do find the question of the cash on hand to be interesting because obviously if most warrants get exercised the company ends up with more cash on hand which will increase their interest income and (in my opinion) should push up the value of both the stock and the warrant. If I knew half of the warrants were already exercised I would factor the extra billion dollars into cash that can yield interest. But I realize this isn't actually an input into warrant pricing or options pricing.
Thanks so much for your response!
The issue with cash on hand is that it simply doesn’t have any part in calculating price for warrants. It is really only beneficial for valuation of the company as a whole, which would impact the underlying (GME) and not the warrants themselves
Is this a theoretical price for ants? Jk love your work. Lady gobble is better than pornhub.
can someone explain to a smooth brain how one should interprit this indicator please?
This looks awesome. Haven't looked through it all yet but the idea makes a lot of sense.
I mean I understand it, but can you give a little description for those who don't know what you mean by combining all this?
Thanks for this!
Nice!
👍
You are an absolute machine.