I have uploaded a new video to the Classroom in Course 5.20. This video focuses on Python but also has useful theory on Options. Course 5.20 , as a reminder, is on Option Contracts for Crude oil. We examine how to evaluate Call and Put options on Oil. This is the 5th video for this course. We examine the OilOptionsChain class . We again look at some fundamental concepts of Object Oriented Programming . So it is a good revision for Object Oriented Programming. We speak about what the Options Chain is. Specifically, we create an object called call_chain from the OilOptionsChain class. All contracts of this class are for the same underlying asset (WTI Crude Oil) and expire on the same day. The only difference between them is the Strike Price. By creating this OilOptionsChain object in Python, we are essentially generating this financial "menu" based on the market conditions we defined (volatility , etc). See the attached images about what we are doing in this video.

October 2022, Python 3.11 was released. October 2023, Python 3.12 was released. October 2024, Python 3.13 was released. <--- our online courses have code in 3.13. October 2025, Python 3.14 was released. Python 3.14 is a minor release after 3.13. Ordinary 3.13 code (basic scripts, functions, classes, small projects) is expected to run unchanged on 3.14, because we are not doing very advanced / low-level things (C extensions, fiddling with internals, etc.). The course code is written for Python 3.13, but it also runs on Python 3.14. For a few months we will not update the existing code. Maybe towards the summer I may re-evaluate.

A new Energy Industry report has been uploaded to the Classroom section (6.2 - Industry Reports). This report analyses the European Union's new top-down electricity grid reinforcement approach to coordinating cross-border energy infrastructure. The report examines how the EU plans to address costly grid bottlenecks that could reach €26 billion annually by 2030, and the shift from decentralized national planning to centralized coordination. Sources: my commentary combined with the following: [1] The Economist: https://www.economist.com/europe/2025/10/30/europes-need-for-green-electricity-is-blowing-fuses [2] Wall Street Journal: https://www.wsj.com/business/energy-oil/europes-green-energy-rush-slashed-emissionsand-crippled-the-economy-e65a1a07 [3] Financial Times: https://www.ft.com/content/a22e8997-17b0-4762-9de2-c0b4df499bae

A new Energy Industry report has been uploaded to the Classroom section (6.2 - Industry Reports). This report examines Britain's £28 billion investment plan to upgrade gas and electricity networks over the next five years, including how much it will cost households and why the infrastructure is essential for connecting renewable energy projects to the grid. Sources: My commentary combined with the following: [1] Financial Times: https://www.ft.com/content/986d9985-021a-4cf2-a67b-24970e9f1773 [2] Bloomberg: https://www.bloomberg.com/news/articles/2025-12-04/uk-energy-bills-to-rise-as-regulator-backs-major-grid-investment [3] Wall Street Journal: https://www.wsj.com/business/energy-oil/u-k-approves-37-billion-in-funding-for-energy-grid-31d54abe [4] The Economist: https://www.economist.com/britain/2024/01/04/britain-needs-an-unprecedented-expansion-of-the-electricity-grid

A new video has been uploaded in the Online Course 5.20 in the Classroom. This course focuses on option contracts for crude oil, where the underlying asset is the spot price. An option contract is signed between two parties/ companies . Every option contract applies to an asset . This asset is known as “underlying”. So this course is about option contracts that have the crude oil as their underlying asset. The company that owns the option contract can exercise it until it expires. There is no obligation to exercise it. This is why it is called “option contract”. The company will exercise it only if it makes economic sense ie if it makes a profit. The video focuses on the “volatility” concept of option contracts . The video explains that the spot price of crude oil follows a probability distribution called : lognormal distribution. The attached plot, explained in the video, visualizes this concept. It shows how higher volatility (the red line) creates a much wider range of possible spot price outcomes compared to lower volatility (the green line). So a higher volatility means that in the future , the spot price of crude oil is more uncertain than if the volatility was lower. So volatility is similar to uncertainty . And it is visualized as a probability distribution that is wider. This plot shows the spot price of crude oil one year from today. One year from today this price is uncertain . The spot price of oil follows the log normal distribution . This distribution has a different shape depending on the volatility . Here we look at values for volatility of 10%, 30% and 50%. This is a fundamental plot and analysis for any quantitive finance / energy career . This specific plot has been part of multiple interviews for years . This plot is analyzed in the video using simple language. If you have any questions please contact me. I want this concept to be as clear as possible .