{"id":6138,"date":"2024-12-20T09:48:54","date_gmt":"2024-12-20T09:48:54","guid":{"rendered":"https:\/\/eodhd.com\/financial-academy\/?p=6138"},"modified":"2025-04-08T07:43:45","modified_gmt":"2025-04-08T07:43:45","slug":"us-stock-options-data-api-has-arrived","status":"publish","type":"post","link":"https:\/\/eodhd.com\/financial-academy\/technical-analysis-examples\/us-stock-options-data-api-has-arrived","title":{"rendered":"US Stock Options Data API has arrived!"},"content":{"rendered":"
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Licensed Image from Adobe Stock<\/sub><\/figcaption><\/figure>\n<\/div>\n\n\n

I guess you are wondering what Options are, and how they differ from Stocks.<\/p>\n\n\n\n

Options<\/strong> are financial derivatives that provide the right, but not the obligation<\/em>, to buy or sell an underlying asset (like a stock) at a predetermined price within a specific time frame. They are contracts rather than ownership instruments like stocks. \u2013 Investopedia<\/a><\/strong><\/p>\n\n\n\n

And now you are probably wondering what a Derivative is. <\/p>\n\n\n\n

Derivatives<\/strong> are financial contracts whose value is derived from the performance of an underlying asset, such as stocks, bonds, commodities, currencies, or indices. They allow investors to speculate on price movements, hedge risks, or gain access to assets without direct ownership. Common types of derivatives include options<\/strong>, futures<\/strong>, swaps<\/strong>, and forwards<\/strong>. \u2013 CFA Institute<\/a><\/p>\n\n\n\n

Still unsure?<\/p>\n\n\n\n

Options are like buying a voucher to decide later<\/em>. Imagine you see a car you want to buy for \u00a310,000, but you’re not sure yet. You pay \u00a3200 to the seller for the option<\/em> to buy it at that price within 30 days. If the car\u2019s value goes up to \u00a312,000, you can still buy it for \u00a310,000, making a profit. If the car\u2019s value drops to \u00a38,000, you don\u2019t have to buy it, but you lose the \u00a3200 you paid for the option.<\/p>\n\n\n\n

In short, options give you a choice to buy or sell something at a set price, without any obligation to do so.<\/strong><\/p>\n\n\n\n

Derivatives are like value mirrors<\/em>. They don\u2019t have value by themselves but depend on something else. For example, a concert ticket<\/em> gets its value from the concert (the \u201cunderlying asset\u201d). If the concert is popular, the ticket price goes up. If it\u2019s cancelled, the ticket becomes worthless.<\/p>\n\n\n\n

In finance, derivatives work the same way: their value comes from assets like stocks, gold, or even currencies.<\/p>\n\n\n\n

In simple terms, derivatives are contracts that \u201cderive\u201d their value from something else.<\/strong><\/p>\n\n\n\n

EODHD APIs recently added their US Stock Options Data API<\/a>. This is an exciting addition to their marketplace. I thought I would “kick the tyres<\/em>” on the API and see what’s there. <\/p>\n\n\n\n

Please note, API data availability depends on your subscription plan. Some data isn’t included in the free plan. Visit their pricing page<\/a> to find the plan that fits your needs.<\/p>\n\n\n\n

Register & Get Data<\/span><\/a><\/p>\n\n\n\n\n\n\n

Understanding Options Terminology<\/h2>\n\n\n\n

Call<\/strong>: A call option gives the buyer the right, but not the obligation, to purchase the underlying stock at a specified price (strike price) on or before the expiration date. It is generally used when the buyer anticipates the stock price will rise.<\/p>\n\n\n\n

Put<\/strong>: A put option gives the buyer the right, but not the obligation, to sell the underlying stock at a specified price (strike price) on or before the expiration date. It is typically used when the buyer expects the stock price to decline.<\/p>\n\n\n\n

Strike Price<\/strong>: This is the predetermined price at which the buyer of a call or put option can exercise their right to buy or sell the underlying stock. It plays a crucial role in determining an option’s value relative to the market price.<\/p>\n\n\n\n

Expiration Date<\/strong>: The expiration date is the deadline by which the option must be exercised or it becomes worthless. Options are time-sensitive, meaning their value erodes as the expiration date approaches.<\/p>\n\n\n\n

Premium<\/strong>: The premium is the price paid by the buyer to the seller (writer) for the option contract. It reflects factors like the stock price, strike price, time to expiration, and volatility.<\/p>\n\n\n\n

Implied Volatility<\/strong>: Implied volatility represents the market’s forecast of a likely movement in the stock price over the life of the option. Higher implied volatility indicates greater uncertainty and typically results in higher premiums.<\/p>\n\n\n\n

Bid\/Ask<\/strong>: The bid<\/strong> is the price a buyer is willing to pay for the option, while the ask<\/strong> is the price at which a seller is willing to sell. The spread between bid and ask represents the transaction cost.<\/p>\n\n\n\n

In-the-Money (ITM)<\/strong>: A call is in-the-money if the stock price is above the strike price, and a put is in-the-money if the stock price is below the strike price.<\/p>\n\n\n\n

Out-of-the-Money (OTM)<\/strong>: A call is out-of-the-money if the stock price is below the strike price, and a put is out-of-the-money if the stock price is above the strike price.<\/p>\n\n\n\n

At-the-Money (ATM)<\/strong>: An option is at-the-money when the stock price is equal to the strike price.<\/p>\n\n\n\n

Let’s dive in…<\/h2>\n\n\n\n

We will need some code to access the API and see what is there. I’ve looked at the documentation and put this code together. I’m using a “.env<\/em>” file to pass my API token through. It just needs to have one line that says “EODHD_API_TOKEN=<YOUR_TOKEN_HERE><\/strong>“.<\/p>\n\n\n\n

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import os\nimport requests\nimport pandas as pd\nfrom dotenv import load_dotenv\n\nload_dotenv()\napi_token = os.getenv(\"EODHD_API_TOKEN\")\n\n\ndef get_options_data(market: str, from_date: str, to_date: str):\n    base_url = \"https:\/\/eodhd.com\/api\/v2\/options\/\"\n    market = f\"{market}\"\n    url = f\"{base_url}{market}?from={from_date}&to={to_date}&api_token={api_token}\"\n    print(url)\n\n    try:\n        response = requests.get(url, timeout=10)\n        response.raise_for_status()\n\n        json_response = response.json()\n\n        if \"data\" in json_response:\n            data = json_response[\"data\"]\n        else:\n            return None\n\n        if \"error\" in data:\n            print(f\"API Error: {data['error']}\")\n            return None\n        \n        df = pd.DataFrame(data)\n        return df\n\n    except requests.exceptions.Timeout:\n        print(\"Error: The request timed out. Please try again later.\")\n    except requests.exceptions.ConnectionError:\n        print(\"Error: Could not connect to the API. Check your network connection.\")\n    except requests.exceptions.HTTPError as http_err:\n        print(f\"HTTP error occurred: {http_err}\")\n    except requests.exceptions.RequestException as err:\n        print(f\"An unexpected error occurred: {err}\")\n    except ValueError:\n        print(\"Error: Failed to parse JSON response.\")\n    \n    return None\n\n\nif __name__ == \"__main__\":\n    market = \"AAPL.US\"\n    from_date = \"2024-01-10\"\n    to_date = \"2024-01-19\"\n\n    options_df = get_options_data(market, from_date, to_date)\n    \n    if not options_df.empty:\n        print(options_df)\n<\/code><\/pre>\n\n                <\/div>\n                
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