Upstox API Interaction Script

This Python script facilitates interaction with the Upstox API by enabling user authentication, retrieving options chain data, and processing this data for options trading analysis. Below is a breakdown of the functions, including explanations of their operations, assumptions, and sample API responses with the expected outputs.

Prerequisites

To use this script, you need:

• Upstox API credentials (client_id, client_secret, and redirect_uri).
• Basic familiarity with Upstox’s API documentation.

Dependencies

• requests - Handles HTTP requests.
• pandas - Structures and analyzes data.
• webbrowser - Opens the authorization URL in a browser.
• time - Manages timing for API response synchronization.

Code Structure and Functionality

1. get_authorization_code()

Function: Constructs the OAuth2 authorization URL, opens it in the browser, and prompts the user to enter the authorization code provided in the redirect URL.

• Assumptions: Assumes that the client_id and redirect_uri are correctly set and that the user completes authorization in a timely manner.

• How It Works:

  • Builds the authorization URL using the client_id and redirect_uri.
  • Opens this URL in the default web browser.
  • After user authorization, the code expects the user to input the authorization_code manually.

Example URL Opened:

https://api.upstox.com/v2/login/authorization/dialog?client_id=73654a6c-48d4-418c-a328-6d0d5f8c1cc7&redirect_uri=https://webhook.site/fa266724-120b-457a-8d68-5c5990e318fa

Example Input Prompt:

Enter the authorization code from the URL:

2. get_access_token(authorization_code)

Function: Exchanges the authorization_code for an access_token to access other Upstox API endpoints.

• Assumptions: Assumes that the authorization code is valid and the Upstox token endpoint is accessible.

• How It Works:

  • Constructs a POST request with parameters including client_id, client_secret, grant_type, redirect_uri, and the provided authorization_code.
  • Sends the request to Upstox’s token endpoint to obtain the access_token.

Example Request:

data = {
    "client_id": client_id,
    "client_secret": client_secret,
    "grant_type": "authorization_code",
    "redirect_uri": redirect_uri,
    "code": authorization_code
}

Example API Response:

{
  "access_token": "eyJ0eXAiOiJKV1Qi...",
  "token_type": "Bearer",
  "expires_in": 3600
}

Output: Returns the access_token required for authenticated requests.

3. fetch_option_chain_data(access_token, instrument_key, expiry_date)

Function: Retrieves the option chain data for a specified instrument_key (such as NSE_INDEX|NIFTY50) and expiry_date.

• Assumptions: Assumes the access_token is valid, the instrument key exists, and the expiry date format matches YYYY-MM-DD.

• How It Works:

  • Constructs the request URL with instrument_key and expiry_date.
  • Passes the access_token in the headers to authorize the request.
  • Retrieves the JSON response containing data for various strike prices and market information for both call and put options.

Example Request:

url = f"https://api.upstox.com/v2/option/chain?instrument_key={instrument_key}&expiry_date={expiry_date}"
headers = {
    "Authorization": f"Bearer {access_token}",
    "Content-Type": "application/json",
    "Accept": "application/json"
}

Example API Response:

{
  "data": [
    {
      "strike_price": 17000,
      "call_options": {
        "market_data": {
          "ltp": 180.50
        }
      },
      "put_options": {
        "market_data": {
          "ltp": 190.75
        }
      }
    },
    {
      "strike_price": 17500,
      "call_options": {
        "market_data": {
          "ltp": 140.10
        }
      },
      "put_options": {
        "market_data": {
          "ltp": 200.25
        }
      }
    }
  ]
}

Output: Returns raw option chain data in JSON format.

4. process_option_chain_data(data, side)

Function: Processes the option chain data, filtering by side (either "CE" for call options or "PE" for put options) and extracting the last traded price (LTP) and strike price.

• Assumptions: Assumes data is correctly formatted JSON from the Upstox API, and the side parameter is valid.

• How It Works:

  • Iterates over each record in the data array, selecting call_options or put_options based on the side parameter.
  • Extracts strike_price and ltp (last traded price) and stores them in a list of dictionaries.
  • Converts the list into a pandas DataFrame for further analysis, such as identifying the highest price.

Example Processing:

# For `side="CE"` (Call Options)
[
    {
        "strike_price": 17000,
        "side": "CE",
        "ltp": 180.50
    },
    {
        "strike_price": 17500,
        "side": "CE",
        "ltp": 140.10
    }
]

Example DataFrame Output:

strike_price	side	ltp
17000	CE	180.5
17500	CE	140.1

Workflow

1. Authentication:

   • Run get_authorization_code() and get_access_token(authorization_code).

2. Data Retrieval:

   • Use fetch_option_chain_data(access_token, instrument_key, expiry_date) to retrieve option chain data.

3. Data Processing:

   • Process this data using process_option_chain_data(data, side) for insights into call or put options by side and strike price.

Security Considerations

Secure your credentials and token to prevent unauthorized access. Ensure that sensitive data, such as API keys, is not hardcoded in public code.

AI Tools Used

• Used ChatGPT for refining the code and detecting errors.
• Used ChatGPT to understand the working of Upstox API.