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A D VA N C E D A L G O S
Reactive Publishing

Hayden Van Der Post

Johann Strauss
Vincent Bisset

Reactive Publishing
 CONTENTS

Title Page
Foreword
Introduction
Chapter 1: An Overview of Options Markets
The Emergence of Options Contracts
The Evolution of Options Markets
The Introduction of Electronic Trading
The Role of Options in Modern Finance
Global Options Trading Landscape
1.2. Options Basics
Definition of a Call and Put Option
Intrinsic Value and Time Value of Options
The Concept of Leverage in Options
Moneyness (ITM, ATM, OTM)
1.3. Options Pricing Models
Binomial Options Pricing Model
Black-Scholes Model
Merton’s Extension to the Black-Scholes Model
The Greeks (Delta, Gamma, Theta, Vega, Rho)
Limitations of Classical Pricing Models
1.4. Option Market Structure
Exchange-Traded Options vs OTC Options
Options Market Participants and Their Roles
Market Liquidity and Depth
Bid-ask Spread and Its Implications
Impact of Volatility and Volume on Market Structure
1.5. Risk and Portfolio Management with Options
Understanding Options Risk Profiles
Portfolio Hedging with Options
Income Generation Strategies with Options
Tail Risk Hedging
Diversification Benefits of Options
Chapter 2: Basics of Python Programming
Syntax and Semantic Overview
Data Types, Variables, and Operators
Control Structures: Loops and Conditional Statements
Functions and Modules: The Modular Architecture of Python
Programming
Exception Handling and Debugging: The Art of Graceful
Failure and Resolution
2.2. Object-Oriented Programming in Python
Introduction to Classes and Objects: The Pillars of Python's
OOP
Inheritance and Polymorphism: Specialization and Flexibility
in Python’s OOP
Encapsulation and Abstraction: The Pillars of Protected
Complexity in Python’s OOP
Diving Deep into Python’s Special Methods: The Dunders
Mastering Architectural Elegance: Design Patterns in Python
2.3. Essential Python Libraries
NumPy for Numerical Computing
Pandas for Data Manipulation
Matplotlib for Data Visualization
SciPy for Scientific Computing
Scikit-learn for Machine Learning
2.4 Advanced Python Features
List Comprehensions and Generators
Decoding Decorators and Context Managers
Mastering Concurrency: Threading and Multiprocessing
Harnessing Asynchronous Programming: asyncio in Action
Enhancing Code Clarity with Type Annotations and Static
Type Checking
2.5. Development Environment Setup
The Genesis of a Robust Python Environment
In the Collage of Code: Selecting the Ideal IDE
Mastering the Winds of Change: Embracing Git in Version
Control
Navigating the Repository Labyrinth: The Pivotal Role of Pip
in Package Management
Workflow Best Practices in Python Development
Chapter 3: Analyzing Time Series in Finance
Synchronizing Sequences: Indexing Time Series with pandas
Mastery Over Moments: Handling Dates and Times in pandas
The Alchemy of Aggregation: Frequency Conversion and
Resampling in pandas
Navigating Temporal Tides: Time Zone Handling in pandas
The Alchemy of Intervals: Timedelta Calculations in pandas
3.2. Time Series Descriptive Statistics
The Pulse of the Market: Measures of Central Tendency in
Time Series
The Dynamics of Dispersal: Dispersion and Volatility
Measurement in Financial Series
Unveiling Asymmetry and Tails: Skewness and Kurtosis in
Options Markets
Deciphering Dependence: Autocorrelation in Financial Time
Series
The Keystone of Predictive Models: Stationarity in Time
Series
3.3. Time Series Visualization
The Nuances of Trends: Deciphering Market Direction with
Line Plots
Mastering Market Symmetry: The Power of Histograms and
Boxplots in Financial Analysis
Charting the Terrain of Volatility: Heatmaps as Beacons in a
Sea of Chaos
Illuminating Patterns: Candlestick and OHLC Charts as
Navigational Tools in Market Seas
Engaging the Senses: Interactive Visualization with Plotly
3.4 Time Series Decomposition in Python
Navigating the Currents: Trend Extraction Methods Explored
The Rhythms of Time: Unraveling Seasonality in Financial
Data
Navigating the Ebb and Flow: Cyclical and Irregular
Components in Time Series
Dissecting the Remnants: A Deep Dive into Residual Analysis
The Nuances of Smoothing: Applying the Hodrick-Prescott
Filter
3.5. Time Series Forecasting Models
Moving Average and Exponential Smoothing Techniques
Unveiling the Temporal Fabric: ARIMA and SARIMA Models
Mastery Over Market Turbulence: GARCH for Volatility
Prediction
Machine Learning Approaches (e.g., LSTM)
Evaluation of Forecasting Models
Chapter 4: Options Pricing Models in Python
Implementing the Model in Python
Computing Greeks Using Analytical Methods
Pricing European Options
Sensitivity Analysis of the Black-Scholes Model Inputs
4.2 The Binomial Tree Model for Option Valuation
Constructing Binomial Trees
Pricing American and European Options with Binomial Trees
Incorporating Dividends and Interest Rates in Options
Pricing
Calculating Greeks Using Binomial Trees
Convergence and Stability of the Binomial Model
4.3. Monte Carlo Simulation for Options Pricing
Monte Carlo Simulation for Options Pricing
Pricing Exotic Options with Monte Carlo Simulations
Techniques to Enhance Simulation Efficiency
4.4. Volatility Modeling and the Greek
Understanding Historical versus Implied Volatility
Constructing the Implied Volatility Surface
Improving Greeks Calculation with Volatility Smiles
Modeling Volatility Skew and Term Structure
Hedging Strategies Based on the Greeks
4.5 Numerical Methods and Optimization Techniques
Chapter 5: Statistical Analysis and Machine Learning for
Options Trading
5.2. Regression Analysis for Option Pricing
Linear Regression Models for Price Forecasting
Polynomial Regression and Curve Fitting
Multivariate Adaptive Regression Splines
Error Metrics and Evaluation for Regression
5.3 Classification Algorithms for Trade Signals
Support Vector Machines (SVM)
Decision Trees and Random Forests
Gradient Boosting Machines (GBM)
Performance Measures for Classification (Confusion Matrix,
ROC Curve)
5.4. Unsupervised Learning Techniques
Unsupervised Learning Techniques
Clustering Algorithms
Hierarchical Clustering:
Anomaly Detection (One-class SVM, Isolation Forests)
5.5 Deep Learning for Options Strategies
Neural Networks and Backpropagation
Convolutional Neural Networks (CNN) for Pattern
Recognition
Recurrent Neural Networks (RNN) and LSTM for Time Series
Deep Reinforcement Learning for Dynamic Strategies
Implementing and Training Models with TensorFlow and
Keras
Chapter 6: Advanced Implied Volatility Analysis
The Concept and Calculation of Implied Volatility
Implied Volatility and Options Pricing
Comparison Between Historical and Implied Volatility
Surface, Skew, and Smile Analysis
Implied Volatility as a Market Sentiment Indicator
6.2. Modeling Implied Volatility Dynamics
Stochastic Volatility Models (Heston Model, SABR Model)
Local Volatility Models (Dupire's Model)
Hybrid Models Combining Stochastic and Local Volatility
Calibration of Volatility Models to Market Data
Limitations and Challenges in Volatility Modeling
6.3. Implied Volatility Trading Strategis
VIX-Related Products and Their Uses in Trading
6.4. Volatility Term Structure and Trading
Contango and Backwardation in Volatility Markets
Term Structure Trading Strategies
6.5 Applications to VIX Futures and Options
Quantitative Tools for Volatility Analysis
Developing Custom Volatility Indicators in Python
Utilizing Machine Learning for Predicting Volatility Shifts
Real-time Monitoring of Volatility Indexes
Importance of Implied Volatility in Algorithmic Models
Backtesting Volatility-Based Trading Algorithms
Conclusion
Additional Resources
Sample Trading Programs – Step by Step Guide
Python – Complete Program
Sample Trading Program 1 - Generic
Sample Trading Program 2 - Generic
Sample Trading Program 3 – Interactive Brokers
Sample Trading Program 4 – Meta Trader
 FOREWORD

I
'm excited to present a crucial tool for both traders and
quants. Interacting with Mr. Van Der Post about market
dynamics is a stimulating yet somewhat disordered
experience. His book skillfully simplifies complex financial
theories into pages that are both enlightening and practical.
This book acts as an accurate navigational tool in the
intricate landscape of fintech innovations. Perfect for
students, financial experts, or scholars delving into the
enigmas of finance, Hayden resembles a finance-savvy
Indiana Jones, adeptly showing the significance of Python in
deciphering market enigmas.

The book transcends the technical aspects of options and

algorithms, rendering complicated ideas accessible. It's
comparable to demystifying the core of Berlin's nightlife for
someone unfamiliar with it. No matter your level of trading
expertise, this book offers valuable insights for all. I'm
deeply invested in this book. Hayden's knack for
demystifying trading complexities echoes my experiences in
Berlin, where grasping the local nightlife was as intricate as
making algorithmic trading comprehensible to a techno DJ.
His storytelling prowess renders complex subjects easily
understandable.
Perusing this book is akin to uncovering a wealth of trading
knowledge. You'll traverse complex trading concepts as
effortlessly as a local navigating Berlin's transit system. This
book not only unveils new viewpoints but also boldly paves
the way. So, prepare your preferred drink and brace for a
captivating foray into the realm of finance. It's set to be as
unpredictable, thrilling, and unforgettable as a Berlin night
out. Cheers to your trading adventure!

Johann Strauss
Quantitative Analyst and Financial Technologist
Author of "Machine Learning in Finance: The New Alchemy"
 INTRODUCTION

I
n the exhilarating, fun, stupendous, amazing world of
financial markets, where fortunes pivot on minuscule
decisions and moods fluctuate more rapidly than a
hyperactive day trader, a new breed of market wizards has
arisen. These wizards don't depend on mystical crystal balls
or sheer intuition; instead, they wield the potent tools of
binary code and Python scripts. Enter the dynamic realm of
"Advanced Options Analysis and Algorithmic Trading
Strategies with Python," the definitive guide for those who
trust algorithms over astrological forecasts in the pursuit of
wealth.

As you peruse this book, you'll uncover a trove of insightful

knowledge, blending expert research with practical code
snippets that connect lofty financial theories with the
tangible world of algorithm-driven trading. This book is
more than a manual; it's a map to the coveted treasure of
market dominance, with Python as your faithful ally.

Whether you're a traditional trader poised to exchange your

mystical tools for digital solutions, or a Python-savvy prodigy
eager to decrypt Wall Street's secrets, this book is your
indispensable resource. Immerse yourself in the
complexities of options trading, become intimate with
derivatives, and decipher intricate pricing models. Prepare
for a journey into the digital wilderness where algorithms
rule, executing trades with a precision that astonishes
traditional traders.

Our journey begins with the basics of options theory,

demystifying terms and revealing the exhilarating interplay
of risk and reward. Prepare to acquaint yourself with the
Greeks – not ancient philosophers, but crucial metrics that
indicate how your options respond to market movements.

From these academic foundations, we venture into the

untamed territories of algorithmic strategy. Here, you will
harness the power of Python to create, test, and refine a
diverse array of trading algorithms. Explore backtesting
using historical data, forecast market fluctuations with
machine learning, and delve into various other forms of
financial sorcery.

But hold your horses, this is just the appetizer. The main
course is a feast of insights from trading titans, served up in
bite-sized, easy-to-digest morsels of practical wisdom. Your
journey through these pages is not just a reading spree; it's
the start of your metamorphosis into a financial market
maestro.

So, buckle up for a brain-tingling escapade that transcends

the dull drone of profit and loss. With Python as your steed
and the insights from "Advanced Options Analysis and
Algorithmic Trading Strategies with Python" as your lance,
you're about to joust with the titans of the market. Ready,
set, charge – your slice of the victory pie awaits!
 CHAPTER 1: AN
OVERVIEW OF OPTIONS
MARKETS
1.1 History of Options Trading

O
ptions trading boasts a history stretching back to
ancient times, beginning in the vibrant markets of
Mesopotamia. Tales from this period recount the first
instances of options contracts, laying the groundwork for the
sophisticated derivatives we see today. This historical
narrative of options trading threads its way through the
centuries and across continents, tracing a path of financial
development that covers millennia.

Fast forward to 17th-century Amsterdam, the cradle of

sophisticated financial instruments, where options trading
found a fertile ground. As tulip bulbs rose to the status of
prized assets, the Dutch, with their keen mercantile spirit,
laid the groundwork for what would evolve into a
comprehensive financial market. It was here, amidst the
frenetic trading of tulip futures, that options began to take a
more recognizable form.
The echo of these trading practices reverberated through
the halls of the Dojima Rice Exchange in Osaka, where the
Samurai, paid in rice, devised a system to sell or trade their
future earnings, giving life to the first rudimentary futures
market. Options naturally found their place within the rice
trade, affording merchants the capacity to manage risk
amidst the uncertainty of future harvests.

As we leap into the 20th century, the narrative arc bends

towards Chicago, where the Chicago Board of Trade (CBOT)
and the Chicago Board Options Exchange (CBOE)
established the first regulated environments for options
trading. It was here that standardized contracts came into
existence, creating the liquidity and market structure
necessary for the thriving options markets we know today.

Delving into these historical depths, we not only honor the

ingenuity of our financial forebears but also glean crucial
insights into the evolution of market dynamics.
Understanding this rich history of options trading allows us
to appreciate its complexity and its significance in the er
scheme of finance. It provides essential context for grasping
the nuances that inform modern trading strategies and the
regulatory frameworks that govern today's markets.

With this foundational knowledge, we stand on the

shoulders of history, poised to expand upon the legacy with
the sophisticated tools and analytical prowess that
characterize the current epoch of options trading.
 THE EMERGENCE OF
OPTIONS CONTRACTS
The tale unfolds during the blossoming of commerce in the
medieval fairs of Europe. In these bustling hubs of trade,
merchants and farmers sought methods to hedge against
the unpredictable swings of supply and demand. Amidst the
cacophony of bartering voices, the rudimentary forms of
what we recognize today as put and call options began to
crystallize. These agreements allowed sellers to lock in a
sale price for their goods, providing a safeguard against
plummeting prices, while buyers could secure a purchase
price, insulating themselves from future price surges.

The formalization of these contracts took a significant stride

in the famed coffeehouses of London, which doubled as
informal trading floors in the 1700s. Here, the options
market took a more structured form, as traders began to
deal in these contracts with greater frequency. Though
rudimentary by today's standards, the transactions carried
out in the heart of London laid the groundwork for more
complex financial innovations.

The next chapter in the story of options contracts unfolds

across the Atlantic, where the first recorded instance of
options trading in the United States occurred. In 1792,
under a Buttonwood tree on what would become Wall
Street, the Buttonwood Agreement was signed. This pact
between 24 merchants and stockbrokers established the
trading rules that would eventually lead to the formation of
the New York Stock Exchange. Among these rules were the
provisions for options trading, signaling the practice's
burgeoning legitimacy.

With the industrial revolution in full swing and capital

markets expanding, the tumultuous 19th century saw
options contracts being employed not just as protective
measures but as speculative instruments. This period
witnessed an increased sophistication in the contracts'
structuration, setting the stage for the explosive growth that
would follow.

It is essential to note the innovations and adaptations that

propelled options contracts from their embryonic form to the
complex and multi-faceted instruments we utilize today.
Each step in their emergence reflects the broader economic
and technological shifts of the era, as well as the ever-
present human desire to navigate the uncertain waters of
the future with greater assurance and profitability.

In studying this evolution, we are reminded that the very

essence of options trading is rooted in the fundamental
economic principles of risk and reward. These principles
have steered the financial destiny of traders and institutions
alike, shaping the landscape in which we operate and
setting the scene for the technological advancements that
would revolutionize options trading in the 20th century and
beyond.
 THE EVOLUTION OF
OPTIONS MARKETS
As the wheel of time turned, the financial landscapes of the
20th century became fertile ground for the burgeoning
growth of options markets. This era was characterised by the
advent of formal exchanges dedicated to the trading of
these versatile instruments, facilitating a dramatic
advancement in both their accessibility and complexity.

In the early 1900s, options trading was still largely

conducted over the counter (OTC), with minimal
standardization and a great deal of counterparty risk. The
lack of transparency and regulation made it a market
primarily for the affluent and well-connected. However, the
seed of change was sown in 1973 with the launch of the
Chicago Board Options Exchange (CBOE), the world's first
environment where options on equities could be publicly
traded. This watershed event marked the beginning of
regulated options trading, offering a level of security and
trust that had been absent.

The innovation did not end with the establishment of the

CBOE. The subsequent introduction of the standardized
options contract revolutionized the market. Standardization
meant that options contracts now had fixed strike prices,
expiration dates, and contract sizes, which greatly increased
liquidity and made it easier for a broader spectrum of
investors to partake in options trading. This newfound
uniformity was a boon for both individual traders and
institutional investors, as it reduced the complexities
formerly associated with custom OTC contracts.

The 1980s saw the options markets continue to evolve with

the advent of electronic trading. The emergence of this
digital frontier enabled faster transaction speeds, greater
market efficiency, and an unprecedented expansion of the
global trading community. It was an era marked by a rapid
technological progression that made options trading more
accessible to retail traders, diminishing the dominance of
the professional trading floors.

In tandem with technological strides, the 1990s brought

about the widespread adoption of the Black-Scholes-Merton
model, a mathematical framework that provided an
analytical formula for valuing options contracts. This model
became an indispensable tool for traders, allowing for the
precise pricing of options and the assessment of risk,
thereby streamlining trading strategies and decision-making
processes.

Entering the 21st century, the options markets have

continued to flourish, propelled by innovations in financial
engineering and the proliferation of online trading
platforms. The markets have become more sophisticated
with a plethora of complex products like exotic options and
structured products. Algorithmic trading has risen to
prominence, ushering in a new age where high-frequency
trading and quantitative analysis reign supreme.

Throughout the transformation of the options markets, there

has been an undercurrent of regulatory change aimed at
safeguarding the integrity of the trading environment.
Regulators have worked to ensure fair play and
transparency, while providing a framework that encourages
innovation and healthy market competition.

Today's options markets are a marvel of modern finance, a

far cry from their modest beginnings. They represent a
confluence of historical innovation, evolving technology, and
the relentless pursuit of financial acumen. As traders and
investors continue to navigate these markets, they are
bound by the same principles of risk and reward that have
echoed through the corridors of time, but they are armed
with tools and strategies that past generations could scarce
imagine.
 THE INTRODUCTION OF
ELECTRONIC TRADING
As the dawn of the digital age unfurled its tendrils across
the globe, it was inevitable that the financial markets would
be caught in its transformative grasp. The introduction of
electronic trading in options markets was not merely an
incremental step; it was a seismic shift that would redefine
the velocity and trajectory of market dynamics.

In the mid-1980s, the first electronic trading systems began

to emerge. These systems, rudimentary by today's
standards, signaled the beginning of the end for the
traditional open outcry system, where traders gestured and
shouted their orders on the exchange floor. Electronic
trading platforms offered a stark contrast with their promise
of efficiency, speed, and anonymity.

One of the earliest adopters of electronic trading was the

NASDAQ, which implemented the Small Order Execution
System (SOES), essentially pioneering the era of electronic
markets. This system was designed to facilitate order
execution for smaller market participants, bypassing the
need for direct interaction with market makers.

By the late 1990s, electronic trading had gained significant

traction, and its advantages were becoming irrefutably
evident. The automation of order matching reduced the
likelihood of human error, transactions could be processed
in milliseconds, and traders could participate from anywhere
in the world. This democratization of the trading process
was a game-changer, opening the door for retail investors to
engage with markets that had once been the exclusive
domain of professional traders.

The CBOE was also an early innovator in electronic trading,

introducing its first electronic trading platform, the CBOE
Direct, at the cusp of the new millennium. This platform was
initially designed to complement the open outcry system,
offering electronic executions in parallel with traditional
floor trading. However, as technology advanced and the
market's appetite for electronic trading grew, electronic
platforms began to dominate.

One of the critical breakthroughs was the development of

sophisticated algorithms for automated trading. These
algorithms enabled the execution of complex trading
strategies at speeds unattainable by humans. High-
frequency traders, leveraging powerful computers and ultra-
low latency networks, could now trade on minute
discrepancies in price, often capturing profits in fractions of
a second.

The shift to electronic trading also heralded a new era of

globalization for options markets. Now that trades could be
executed electronically, geographical barriers disintegrated,
allowing for a more interconnected and interdependent
global market. The Asia Pacific Exchange (APEX) and the
European Options Exchange (EOE) began to offer electronic
trading, facilitating cross-border transactions and expanding
the reach of options markets beyond their traditional
confines.
The proliferation of electronic trading platforms led to a
surge in market data volume, providing traders with an
abundance of real-time information. This data, when
harnessed correctly, became a source of power, allowing
informed traders to make swift decisions based on the latest
market movements. Data feeds, once the purview of the
trading elite, were now accessible to the masses, further
leveling the playing field.

As the timeline of finance continued to unfold, electronic

trading became the bedrock upon which modern markets
were built. Its implementation has significantly impacted
market liquidity, allowing for tighter bid-ask spreads and
more effective price discovery. It has also facilitated the
introduction of new financial products and trading
strategies, further enhancing the versatility and depth of
options markets.

Electronic trading has indelibly altered the landscape of

options markets, and its continuing evolution is a testament
to the ingenuity and resourcefulness of financial
technologists. As we peer into the future, it is clear that
electronic trading will continue to be a cornerstone of
market operations, driving innovation and shaping the face
of finance for generations to come.
 THE ROLE OF OPTIONS
IN MODERN FINANCE
In the complex collage of modern finance, options stand out
as versatile instruments whose strategic value cannot be
overstated. They have become the cornerstone of risk
management and speculative endeavors, offering a opus of
possibilities to the keen investor.

A financial option is a contract that bestows upon the holder

the right, though not the obligation, to buy or sell an
underlying asset at a predetermined price within a specific
timeframe. This fundamental characteristic—choice without
commitment—imbues options with a unique risk profile that
can be tailored to suit the specific risk tolerance and market
view of the investor.

One of the primary roles of options in modern finance is to

provide hedging capabilities. As insurance contracts for
portfolios, options can protect against adverse price
movements in underlying assets. A classic example is the
protective put strategy, where an investor holding a stock
can purchase put options to limit downside risk. Should the
stock plummet, the put options will rise in value, offsetting
the losses in the stock position. Conversely, covered call
strategies allow for income generation by writing call
options against stock holdings, offering premium income
while potentially obligating the sale of the stock at the strike
price.
Speculation is another domain where options have gained
prominence. The leverage effect of options enables traders
to amplify their exposure to price movements without
committing substantial capital. For instance, purchasing call
options on a stock that is anticipated to increase in value
can result in significant profits if the stock's price
appreciates above the strike price, with the trader’s risk
limited to the premium paid for the option.

Options also contribute to price discovery in financial

markets. As investors gauge the probability of future price
movements, options pricing can provide insights into market
expectations. The implied volatility embedded in option
prices reflects the market's forecast of the underlying asset's
volatility, serving as a barometer of market sentiment and
uncertainty.

Moreover, options have given rise to complex trading

strategies that can be calibrated for virtually any market
outlook or risk appetite. Strategies such as iron condors and
butterflies allow traders to profit from range-bound markets,
while straddles and strangles can be employed when
significant price movements are expected, irrespective of
the direction.

The roles of options extend into the corporate sphere, where

companies utilize options to manage currency and
commodity price risks. For example, an airline company may
use fuel options to hedge against the volatility of jet fuel
prices, thus stabilizing cash flows and financial planning.

In the institutional sphere, options are integral to portfolio

management. Asset managers employ option strategies to
enhance portfolio returns, manage risk-return profiles, and
provide downside protection. Additionally, options form the
basis of structured products, offering customized payoffs to
meet the specific investment preferences of individuals and
institutions.

Options have also become essential tools in executive

compensation packages. Stock options align the interests of
management with those of shareholders by incentivizing
executives to drive the company's share price upward, thus
tying their rewards to the company's performance.

In summary, the role of options in modern finance is

multifaceted and deeply entrenched. They offer a rich
arsenal of tools for investors to express their convictions,
manage risks, and optimize returns. As financial markets
evolve, so too will the strategies and applications of options,
continuing to shape the contours of the financial landscape.
 GLOBAL OPTIONS
TRADING LANDSCAPE
Navigating the global options trading landscape is akin to
steering through the vast and ever-shifting open sea. It is a
world where diverse trading venues, regulatory
environments, and market participants converge to form a
dynamic ecosystem. Whether one is an individual day trader
or a sophisticated institutional player, understanding this
landscape is crucial for effective strategy implementation
and risk management.

Globally, options are traded on exchanges as well as over-

the-counter (OTC). Exchanges such as the Chicago Board
Options Exchange (CBOE) in the United States, Eurex in
Europe, and the Osaka Securities Exchange in Japan,
provide centralized and regulated marketplaces where
options contracts are standardized with clear specifications
on strike prices, expiration dates, and contract sizes. These
exchanges facilitate transparency, liquidity, and price
discovery, with the added assurance of counterparty risk
mitigation through clearinghouses.

In contrast, the OTC market allows for more tailored

contracts, accommodating the specific needs of
counterparties. Here, options are negotiated bilaterally, and
while this customizability is advantageous for unique
hedging strategies or specific investment goals, it also
brings increased counterparty risk and less transparency
compared to exchange-traded options.

Regulatory frameworks play an essential role in shaping the

options trading landscape. The stringent rules and oversight
in the United States, enforced by entities such as the
Securities and Exchange Commission (SEC) and the
Commodity Futures Trading Commission (CFTC), set
standards for market conduct and investor protection.
Similarly, in Europe, the Markets in Financial Instruments
Directive (MiFID) II aims to increase market transparency
and integrity. Each jurisdiction's regulatory climate has a
direct impact on options trading practices, influencing
everything from reporting requirements to the availability of
certain financial instruments.

The advent of electronic trading has revolutionized the

options markets, making them more accessible and
efficient. The transition from open outcry to electronic
platforms has enabled high-speed trading and global
connectivity, allowing traders to execute complex strategies
with precision and at a fraction of the time once required.

Market participants in the global options landscape vary

widely, from retail investors seeking to hedge investments
or speculate on stock movements, to institutional investors
employing sophisticated strategies for portfolio
management. Additionally, market makers provide liquidity
by quoting buy and sell prices for options contracts,
facilitating orderly trading even in less liquid options.

Propelled by technological advancements, algorithmic

trading has become a significant component of the options
market. Algorithms can analyze vast arrays of market data
to identify trading opportunities, manage risks, or execute
orders at optimal prices. Such strategies can range from
simple automated execution of orders based on predefined
criteria to complex models that involve predictive analytics
and machine learning.

Volatility, as measured by indices such as the VIX (often

referred to as the "fear index"), is a pivotal factor in the
global options market. As it encapsulates market sentiment
regarding future uncertainty, traders closely monitor it to
adjust their options strategies accordingly. In times of high
volatility, options trading can become particularly frenetic,
as traders react to swift market movements and seek to
exploit or hedge against heightened risk.

The global options trading landscape is not without its

challenges. Political events, economic announcements, and
shifts in monetary policy can create ripples or, at times, tidal
waves across the markets, necessitating vigilant risk
management. Furthermore, the disparity in tax treatments
and transaction costs across regions can influence strategy
profitability and must be factored into cross-border trading
decisions.

In conclusion, the global options trading landscape is a

complex network of markets, participants, and regulations.
It requires astute navigation to capitalize on the
opportunities it presents while managing the inherent risks.
As the financial world continues to evolve, staying abreast of
developments within this landscape will be pivotal for all
who engage in options trading on the international stage.
 1.2. OPTIONS BASICS
Options are considered powerful instruments within the
complex landscape of financial derivatives. They possess
versatility in their application and hold strategic potential.
At its core, an option is a contract that bestows upon the
buyer the right, but not the obligation, to purchase or sell an
underlying asset at a predetermined price within a specified
period of time.

At the heart of options trading lies the dichotomy between

calls and puts. A call option provides the holder the liberty
to purchase the underlying asset at the strike price, while a
put option bestows the right to sell. When one anticipates
an asset's price ascent, call options beckon; inversely, put
options become the refuge for expectations of decline.

The anatomy of an options contract is marked by specific

terminology. The strike price, also known as the exercise
price, is the agreed-upon rate at which the underlying asset
may be bought or sold. The expiration date delineates the
temporal boundary of the contract's validity, after which the
right to exercise ceases. Premium, the price paid for the
option itself, reflects not only the intrinsic value but also the
time value—options with more time until expiration typically
command a higher premium owing to the greater
uncertainty and potential for the underlying asset to move
favorably.
The concept of leverage emerges naturally within the sphere
of options. Given that the premium paid for an option is a
fraction of the underlying asset's price, options enable a
trader to control a significant position with a comparatively
modest capital outlay. This leverage magnifies both
potential gains and losses, making risk management a
cornerstone of prudent options trading.

'Moneyness' is the term that captures the position of the

current market price relative to the strike price. An option 'in
the money' (ITM) has intrinsic value—calls where the asset
price is above the strike, and puts where it's below. 'At the
money' (ATM) options have a strike price equal to the asset
price, teetering on the cusp of profitability. Finally, 'out of
the money' (OTM) options possess no intrinsic value; their
worth lies solely in their time value.

Understanding these fundamentals provides a scaffold upon

which more sophisticated strategies and analyses can be
constructed. As traders delve deeper into the nuances of
options, they will encounter a rich landscape of strategies
that cater to diverse risk profiles and market outlooks.
Mastery of these basics is an essential prelude to navigating
the complex interplay of market forces with finesse and
confidence.
 DEFINITION OF A CALL
AND PUT OPTION
Options, those versatile keystones in the archway of
financial derivatives, are instruments encapsulating a opus
of risk and reward. A call option emerges as a beacon for the
bullish—heralding the right to stride into the marketplace
and claim ownership of an asset at the strike price before
the march of time extinguishes the flame of opportunity at
expiration. It's a speculator's wand, conjuring profit from the
asset's ascent, all the while cushioned by the limit of loss to
the premium paid. The leverage inherent in call options can
inflate the speculator's capital, inflating it with the potential
for significant returns.

Conversely, a put option is the harbinger of bearish tidings,

offering the right to part ways with an asset at the strike
price. It's a tool of protection, a financial parachute, allowing
investors to hedge the risk of their holdings or speculate on
the descent of prices without the need to first own the
underlying asset. The put option serves as a bulwark against
downturns, its intrinsic value swelling as the asset's price
dwindles below the strike.

Exploring the essence of these options, one must scrutinize

the anatomy of their valuation. The premium—the price at
which the option is traded—becomes the subject of fierce
scrutiny and strategic calculation. Investors and traders,
equipped with models and market insight, assay this
parameter, weighing the current market price against the
strike, the volatility of the underlying asset, and the waning
time to expiration. Herein lies the alchemy of options
trading, a crucible where market sentiments, statistical
probabilities, and strategic acumen converge.

Call and put options extend beyond mere definitions; they

are the very sinews and ligaments that enable the agility of
portfolios. Like a skilled mariner reading the stars, the
options trader navigates through tumultuous financial seas,
leveraging calls and puts as instruments of both speculation
and insurance. In the forthcoming chapters, we will dissect
these mechanisms further, elucidating the complex
strategies that can be constructed from these fundamental
building blocks.

Let us proceed with the knowledge that the mastery of calls

and puts is not merely academic but a practical prowess to
be wielded with judicious foresight. The narratives of
fortunes made and lost within the options markets
underscore the potency of these instruments—a testament
to their role as arbiters of financial fate.

- Review the text for areas where further detail or

clarification would add value. If identified, please expand on
those areas in the next response. Avoid repetition and strive
for a comprehensive understanding of the topic.

Options Terminology (Strike Price, Expiration, etc.

In the lexicon of options trading, terms are not merely

words; they are the distilled essence of complex concepts,
each carrying the weight of financial implications. To
navigate the options landscape with the acumen of an adept
trader, one must become fluent in this specialized
vernacular.

At the heart of options terminology lies the 'strike price,' the

fulcrum upon which the entire premise of an option pivots. It
is the predetermined price at which an option holder can
either purchase (in the case of a call option) or sell (in the
case of a put option) the underlying asset. The strike price is
the beacon that guides the option's intrinsic value; it is the
benchmark against which all market movements are
measured.

Another cornerstone term is 'expiration,' the horizon line of

the option's lifecycle. It marks the culmination of the
contract, the point at which the right to exercise the option
either fructifies into action or dissolves into worthlessness.
The expiration date is a critical strategic consideration, for
time's inexorable march is a crucial determinant of the
option's 'time value'—a component of the total premium
that erodes as the expiration draws nearer.

Options traders must also be conversant with 'in the money'

(ITM), 'at the money' (ATM), and 'out of the money' (OTM)—
phrases that describe the position of the strike price relative
to the current market price of the underlying asset. An ITM
option has immediate exercise value, an ATM option stands
on the threshold, while an OTM option remains a bet on
future movements to cross the profitability barrier.

The 'premium' is the price a trader pays to acquire the

option itself, a figure influenced by intrinsic value, time
value, volatility, and other market factors such as interest
rates and dividends. It is the gatekeeper to the potential
rewards and risks that options can unlock.
'Volatility,' a term that reverberates through the options
market, measures the intensity of an asset's price
fluctuations. It fuels the engines of option pricing models,
for it is a predictor of uncertainty, and in the world of
finance, uncertainty is the soil in which the seeds of
opportunity are sown.

Lastly, 'assignment' is an event that occurs when an option

writer (the seller) is compelled to fulfill the terms of the
option contract upon exercise by the holder. It is the
culmination of an option's journey from inception to
conclusion, the moment when contractual rights transform
into tangible actions.

These terms form the bedrock of options trading dialogue, a

language that, when mastered, allows traders to converse
with markets, interpret their moods, and anticipate their
whims. As we delve deeper into subsequent sections, we
will expand upon these concepts, examining their interplay
and the strategies they enable. Mastery of this terminology
is not merely academic—it is the very currency of the
options trader, a currency that grants access to the elite
echelons of financial ingenuity.
 INTRINSIC VALUE AND
TIME VALUE OF
OPTIONS
To comprehend the enigmatic beauty of options, one must
dissect the premium into its two core components: intrinsic
value and time value. These twin pillars uphold the
valuation from which all strategic decisions in options
trading stem.

Intrinsic value is the essence of stark reality, the profit that

would be realized were the option to be exercised at this
very moment. It is quantified as the difference between the
underlying asset's current price and the option's strike price.
This value is straightforward for a call option—if the
underlying asset's price exceeds the strike price, the
intrinsic value is positive; for a put option, it is the inverse.
Should the market price and strike price not warrant a
profitable exercise, the intrinsic value is zero—a simple,
harsh truth of the market's current stance.

Conversely, time value is the embodiment of potential, the

premium that traders are willing to pay over the intrinsic
value for the possibility that the option will gain in worth
before expiration. It is a bet on the future, a speculation
rooted in the unpredictable swings of the market. The time
value is a mercurial figure, influenced by the time remaining
until expiration, inherent volatility of the underlying asset,
and a host of other factors like interest rates and dividends.

With the relentless tick of the clock, the time value decays,
an inexorable process known as 'time decay'. As expiration
approaches, the window for the underlying asset to move in
a favorable direction narrows, and the time value
diminishes, often accelerating as expiration looms. This
decay is not linear, but an asymptotic journey towards zero,
with the steepest descent in the final days before the
option's end.

To illustrate, consider a call option with a strike price of $50,

while the current stock price is $55. If the price of the option
is $7, the intrinsic value would be $5—the actual profit if
exercised. The remaining $2 represents the time value, the
potential for additional profit before the option expires.

Traders, thus, must marry the hard facts reflected by

intrinsic value with the speculative nature of time value to
forge a comprehensive assessment of an option's worth.
One cannot exist without the other; together, they form the
market price of an option—the convergence point of rational
assessment and future possibilities.

As we progress, we shall explore how these two valuation

components can be manipulated and modeled to construct
robust trading strategies that can weather the vicissitudes
of market sentiment and capitalize on the confluence of
time and opportunity.

Remember, the intrinsic value offers a glimpse of the

present, while the time value dreams of profit tomorrow;
understanding both is indispensable for the astute options
strategist.
 THE CONCEPT OF
LEVERAGE IN OPTIONS
Leverage, a term that resonates with power and possibility,
finds its strategic zenith within the options market. It is the
mechanism by which options enable traders to amplify their
exposure to underlying assets with a comparatively minimal
capital outlay. In this financial fulcrum, the smallest
movement in the underlying asset can produce
disproportionate effects on an investor's capital, for better or
for worse.

To harness leverage is to understand that the purchase of an

option grants control over a larger amount of the underlying
asset than the capital employed would ordinarily permit.
This control is a product of the option's contract multiplier,
typically representing a significant number of shares of the
underlying asset in the equity markets. Herein lies the
seductive appeal of options: the ability to partake in the
gains of substantial quantities of the asset without
commensurately large investments.

Consider a scenario where a stock trades at $100 per share.

A trader with a bullish outlook might procure 100 shares at
the cost of $10,000. However, by employing options, that
same trader could purchase call options with a strike price
of $100, representing the same 100 shares, for a premium,
say, of $10 per option contract. The total investment is now
$1,000—a tenth of the direct stock purchase amount, yet
with the potential to benefit from gains in the stock's value.

The leverage ratio, a quantifier of this leverage effect,

measures the percentage change in the option's price
relative to the percentage change in the underlying asset's
price. High leverage indicates that even a small change in
the asset's price can trigger a significant change in the
option’s price. This is the dual-edged sword of options
trading—while the prospects of amplified returns are
tantalizing, the risk of magnified losses is an ever-present
shadow.

Time decay intertwines with leverage, affecting the option’s

sensitivity to the movements of the underlying asset. As
expiration draws near, the option's time value dissipates,
often leading to a decrease in leverage. A trader must thus
be keenly aware of the temporal horizon of their options and
the associated decay of leverage.

Leverage also accentuates the importance of volatility. An

asset prone to dramatic fluctuations in price can vastly
increase the value of an option, as the probability of the
option moving in-the-money heightens. The astute trader
must, therefore, balance their appetite for leverage with
their tolerance for risk, for volatility can just as swiftly erode
an option's value.

In the subsequent sections, we shall dissect the complex

relationship between leverage, volatility, and time decay. We
will constellate these concepts into robust analytical
frameworks and strategies, enabling traders to prudently
wield the formidable power of leverage in pursuit of their
financial objectives.
In embracing leverage, the options trader steps into a
sphere where fortunes can be forged with foresight and
precision, leveraging the confluence of market trends and
option dynamics to sculpt a competitive edge in the
financial markets.
 MONEYNESS (ITM, ATM,
OTM)
Moneyness is the term used to describe the intrinsic position
of an option's strike price relative to the current market
price of the underlying asset. It is a fundamental concept
that determines the intrinsic value of an option and
influences the strategic decision-making process of traders
and investors. The moneyness of an option categorizes it
into one of three distinct states: in-the-money (ITM), at-the-
money (ATM), or out-of-the-money (OTM). Each state holds
unique implications for the option holder, which we shall
navigate with precision and acute awareness of the
underlying market dynamics.

In-the-money options (ITM) are those whose exercise would

result in a positive cash flow to the holder. For call options,
this means the strike price is below the current market price
of the underlying asset. Conversely, put options are
considered ITM when the strike price sits above the market
price. These options carry intrinsic value and represent a
real economic advantage to the holder, as they can be
exercised immediately for a gain. Traders often seek ITM
options for their profitability potential, yet they come with
higher premiums due to the value they possess.

At-the-money options (ATM), by contrast, are positioned at

the threshold where the strike price and market price
converge. These options teeter on the edge of profitability,
holding no intrinsic value; their worth is wholly extrinsic,
hinging on the time value and anticipated volatility of the
underlying asset. Such options are sensitive to market
movements, and traders monitor them closely, especially as
the expiration date looms, and the potential for profitability
becomes concentrated in a narrow time window.

Out-of-the-money options (OTM) reside in a speculative

space where the current market price of the asset has yet to
reach the strike price for calls, or has not fallen below the
strike price for puts. These options have no intrinsic value
and are deemed less expensive, rendering them an
attractive proposition for traders with a strong market
conviction or those seeking insurance-like protection for
their portfolios. The allure of OTM options lies in their
leverage potential; a favorable shift in the market can
exponentially increase their value.

Understanding moneyness is crucial for traders, as it affects

the decision to exercise an option, the premiums paid or
received, and the risk profiles of different strategies. A call
option shifting from OTM to ITM signifies a bullish triumph,
whereas a put option making the same transition is a
harbinger of bearish fortunes. As we explore these states,
we will delve into scenarios that reveal how moneyness
affects both the tactical deployment of individual options
and the complex configurations of complex trading
strategies.

The interplay of moneyness with time decay and implied

volatility forms a collage of strategic considerations. An ITM
option, while valuable, may dwindle in worth if its delta
decreases as expiration nears. An OTM option may suddenly
surge in value if market sentiment shifts and implied
volatility spikes. The astute trader must not only understand
the current state of moneyness but also anticipate its
evolution as market conditions and time conspire to shape
the destiny of an option's worth.

In the sections that follow, we will dissect how moneyness

influences the Greeks, impacts the selection of trading
strategies, and interacts with the broader market forces. We
will equip traders with the analytical tools and knowledge to
navigate the spectrum of moneyness with confidence and
strategic acumen, optimizing their positions to align with
their market outlook and risk tolerance.
 1.3. OPTIONS PRICING
MODELS
An exploration of the financial strategies one can deploy in
the options market is markedly incomplete without a
meticulous examination of options pricing models. These
models are the cornerstone for estimating the fair value of
options, serving as the bedrock upon which traders and
quants construct their strategies and make informed
decisions. In this section, we delve into the sophisticated
sphere of these pricing models, starting with the
foundational theories and progressing to the more complex
and nuanced adaptations that have evolved over time.

The Black-Scholes model, formulated by Fischer Black,

Myron Scholes, and Robert Merton, revolutionized the world
of finance by providing a closed-form solution for pricing
European-style options. Grounded in the assumption of log-
normal distribution of asset prices and the no-arbitrage
principle, the model derives an option's price based on
factors such as the current price of the underlying asset, the
option's strike price, time to expiration, risk-free interest
rates, and the volatility of the underlying asset. The
elegance of the model lies in the Black-Scholes formula, a
mathematical expression encapsulating these variables into
a coherent whole, thus allowing traders to gauge the
theoretical value of an option.
While the Black-Scholes model is an invaluable starting
point, it is not without limitations. Real-world market
conditions such as early exercise options, discrete dividends,
and dynamic interest rates led to the development of the
Binomial Options Pricing Model. This model, which employs
a discrete-time lattice framework, allows for the flexibility to
accommodate American-style options and variable
corporate payouts. By simulating the possible price paths of
the underlying asset through a binomial tree—depicting
upward and downward movements—traders can evaluate
the option’s value at each node, tracing back to its present
value.

Further complexities in market behavior gave rise to the

need for models that account for stochastic volatility and
interest rates. The Merton model, an extension of the Black-
Scholes framework, introduces random jumps in asset
prices, capturing the sudden and significant movements
often observed in markets. Meanwhile, the Heston model
allows for a stochastic volatility process, admitting the
reality that volatility itself is not constant but varies over
time.

Central to the practical application of these models is the

computation of the Greeks—Delta, Gamma, Theta, Vega,
and Rho. These risk measures elucidate the sensitivity of an
option's price to various factors: the underlying asset price
changes, time decay, volatility shifts, and movements in the
risk-free interest rate. An accurate estimation of the Greeks
enables traders to hedge their option positions effectively,
tailor their exposure to market dynamics, and capitalize on
temporal or event-induced volatility.

While classical pricing models serve as the linchpin in the

options trader's toolkit, they also set the stage for a candid
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moment’s notice. Sad accounts are daily coming in of the people
about here; every person who ventures out is robbed and beaten:
several people are waiting here for an escort. I cannot so much
blame the Shilhahs and Súsís;[87] they have been sadly oppressed
by the Sultán’s army; and now it is gone, they are repaying
themselves. They acknowledge no law but that of force, and exhibit
but little trace of any religion: their tribes extend, with intervals, to the
Gambia. This has been a dies non.
Sunday, Apr. 3.—Therm. 72°.—A large wolf stole up to the battery
during the night, which roused us all. To-day the wind feels cold, and
there is such a heavy fog that we cannot see the sea; the sun rarely
broke through. There is, at least, a difference of 40°. between the
temperature of to-day and yesterday out of doors, and of 8 to 10
within. Felt not all well, and kept all day to my carpet: beginning to
get tired of Agadír. An arrival from Teródánt, but it brought no news.
Monday, Apr. 4.—Therm. 65°. Very cold, and a mist equal to rain.
All hard at work in making leather bottles, &c., for the water.
Received a large present of fish. A large Káfilah[88] passed this
morning for Teródánt. Did not leave the battery all day.
Tuesday, Apr. 5.—Therm. 72°. The mist continues heavy, and
quite darkening the air. Not very well; kept within the battery. Alas! all
our bread is gone, and these people eat none; and as it is the feast
of unleavened bread, the Jews cannot make any for me, a
deprivation which I feel not a little. The man was seized again by the
devil. Heard the history of the enchanted castle, and the black
woman, who lives at three days’ ride from this place. Heard likewise
of the Jews, and of the tombs. I must see them on my way to Wád
Nún.
Wednesday, Apr. 6.—Therm. 72°. Heavy mist, with rain in the
N.W. A dies non.
Thursday, Apr. 7.—Therm. 76°. Beginning to look out for news:
my man returned from the mines; the specimens he brought were
very bad; he found great difficulty in getting any at all. There was a
market to-day, where I bought nothing but a few carrots. Quite tired
of Agadír. Hope two or three days will decide whether I can go on or
not.
Friday, April 8.—Therm. 60°. Very cold. My fingers were so
chilled, that I could not dress myself. At noon a courier arrived; all is
right; wrote my letters, and after detaining the man an hour,
dispatched him again to Mogadór, to say that we should be ready to
start at an hour’s notice. The feast of the Passover finishes to-day: it
has been very cold, with a strong breeze from the N.E.
Saturday, April 9.—Therm. 70°. Day beautiful; but a stiff gale from
the E. This is the clearest day we have yet had here. The mountains
can be seen distinctly: hard at work in arranging bags, &c.
Sunday, April 10.—Therm. 74°. Weather beautiful. Read the
service. A large káfilah is now passing from Sús; the mountains very
visible; in the afternoon there was a repetition of the easterly wind,
accompanied with the dust, which was very distressing.
Monday, April 11.—Therm. 68°. Wind strong from the E.
Disappointed again, as Hájí Majíibí[89] will not start for some days.
Our horses are to leave Mogadór to-morrow, in order that they may
be fresh for the start (‘Inshállah’) on Saturday next.
Tuesday, April 12.—Therm. 68°. The wind has got more to the N.
with weather very clear. This delay makes me very fidgetty: besides,
I am so well known here, that various reports have been circulated
about me, which rather annoy me. In the evening, thermometer fell
to 56°, when it became very cold. The horses and mules are to leave
Mogadór to-day.
Wednesday, April 13.—Therm. 60°. A dies non. Felt very poorly:
had a touch of the lumbago. Weather variable. Thirst excessive.
Thursday, April 14.—Therm. 70°. Looking out for the arrival of the
horses, as Hájí Majíibí is to start to-day. The people here are rather
too inquisitive, and I am getting rather alarmed. Evening came, but
brought no tidings of my horses, nor has a courier arrived. I am very
uneasy, and all the people here full of conjectures. The Hájí is
thinking only of himself. If he would only consider for one moment
what an object of suspicion I am, while I remain here, he would hurry
on; but no, it is all self in this country. I cannot bite, and therefore I
had better not shew my teeth. Wind got round to the E. The
thermometer fell 11°., when it became very cold. Went to my carpet
rather sulky.
Friday, April 15.—Therm. 70°. This is the first day of the
Mohammedan year 1252. The horses, &c. have arrived. I made my
present to the Sheïkh; got the Sultán’s letter, and one for Sheïkh
Mobarik. A report has reached Mógador, that a party is waiting for
me, who have determined to murder me. The governor here is very
desirous not to let me go. I question, however, if there are any real
grounds for these fears. At half-past seven there came on one of the
severest gales of wind I ever experienced; it threatened the very
fortress: a heavy sea, with lightning in the S.E. The gale from the
N.W. continued to blow hard till half-past nine. This change of
weather may go much against me. I find that I am an object of great
suspicion. A party have sent to ask me to prescribe for a man who
has been bewitched, and is now in a decline. I promised to see him
on Monday, although he lives twenty miles off. This may, however,
do me some good. The people of his tribe offered to bring him here,
but I pointed out the danger of removing him, and hope to gain their
good-will by going so far to visit a Muselmán. Tired, but not sleepy:
no appetite, and out of spirits.
Saturday, April 16.—Therm. 72°. Day beautiful; the gale passed
off without doing any damage. There was one about six weeks ago,
which threatened destruction to the whole place. Despite all I said
about the sick man, they have brought him to-day to Fontí. I had
promised to go down and see him, when the sun was a little lower; I
was scarcely half way down the rock, when I met him on the road; he
was attended by eight of his people, who took it by turns to hold him
on his horse, a splendid animal; the poor Sheïkh, Hájí Ibráhím, was
seriously ill. As he was so far up, I ordered him to the governor’s,
and told his attendants to lay him down, and let him obtain some
rest, previous to my examination of him. I found him in a sad state,
nearly dying to all appearance; he had been frightened, as they call
it, by some spirit, whom, as usual, they had burned out: he had been
fired all over his stomach, which had now lost all its powers. I gave
him a saline draught with tartar acid in effervescence, and made him
a good basin of arrow-root. He no sooner tasted it, than he put the
bowl to his mouth, and nearly emptied it, telling the crowd, that had
now collected to see the holy man, that he had got at last what his
stomach was craving for. I promised to make him a breakfast on the
morrow, and to give him some medicines. By my treatment of him, I
got no little credit; for which I can obtain some help from him in
return. Am heartily sick of this place; although it has lost all its
commerce, it has still a considerable revenue; it may be considered
a frontier town, and is capable of being well defended; it receives
one ducat a-head for all slaves that pass through it, two ounces for
each camel, half a peseta for each mule, and two blanquillas for
each donkey; and as it is in the great road to Sús and Súdán, these
imposts produce a large income.
Sunday, April 17.—Therm. 74°. Had hardly returned from my
patient, when Hájí Majíibí arrived. I repaired immediately to the
governor. All is now arranged for my departure to-morrow, at break
of day: hard at work in packing up. Wrote my letters: dispatched
Cohen and his boy: received a blessing in the synagogue yesterday,
which cost four dollars. I have to part with most of my things, as I
shall be allowed only two mules; the sharks are therefore looking out
for what they can get. I am quite sick at heart at these Moors: poor
ignorant creatures. I have just this moment learned that there is a
town E. of Teródánt, called Tazelt, where there is a Christian church,
in perfect preservation, well finished and painted, but shut up: it is
held in some veneration by the natives, who can only look into it
through the windows. There are also Christian villages in the
neighbourhood of the church. Went down to Fontí; every thing works
well; I am to start as a soldier, accompanying some mules: took
leave of my patient, who is to go with me; but not a soul has an idea
of this. Cohen is very anxious to go on. I have, at his own request,
given him a letter to Lord Glenelg: have packed up every thing: am in
a great bustle. I fear, however, there will be some detention to-
morrow. I suspect the courier has been stopped, as no escort was
visible at sun-set. Laid down to rest, but with no chance of sleeping,
as I am to be up at the earliest dawn, to start, if possible, to-morrow.
 Monday, April 18.—Therm. 70°. Up at four A.M., but did not get
away till seven. I was accompanied as far as the river by the
governor, and four soldiers, Hájí Ibráhím, and our own party; in all
sixteen souls. At half-past eight we came to the boundary of the
district, where a prayer was offered up for the Sultán; after which, the
governor and his party returned. In defiance of all I said about Hájí
Ibráhím’s state of health, he would go on, or rather his tribe
compelled him, to his own house, distant a ride of four hours. Here
we stopped, and had kuskusú and barley-cakes with butter, and
some leben (sour milk). Ibráhím was, indeed, in a sad state of
health.[90] I gave him the medicines I thought best. The perfect
indifference shewn by Hájí Majíbí towards a fellow-creature quite
disgusted me. Had my horse shod, and proceeded S. to Stúka,
attended by a strange semi-devil from the Hájí (Ibráhím), who told
me that I need be under no alarm, as he could bring one hundred
horse into the field, and had promised to protect me. Crossed the
Sús river, which is here a considerable stream, although twenty
miles from the sea. We arrived at a little before six P.M., at the house
of Sheïkh Hamed, who is a fine young man: he and the people of his
town were all out at prayers. The country is fine, with large
plantations of figs and almonds. During the time that our food was
preparing, I was amused with some good ball-firing, the party
standing on one leg or lying down: they are a merry people. We
commenced with bread and butter and honey; then came kuskusú;
then tea till midnight. Abú here received from one of his countrymen
some account of his friends. The pocket-handkerchief is used for the
towel generally, and the corner of the mat lifted up for wiping the
nose: the belching is quite beastly. Passed but a bad night.
Tuesday, April 19.—Therm. 72°. Up at four A.M. and got off at six.
Just before starting, I had the place half-full of patients. I had been
bored to death the night before with questions. One man was
brought to me with a ball in his foot; and by way of assisting me to
cure him, the gun was brought from which the ball had been
discharged. Accompanied by the brother of the Sheïkh and four of
his people, and Hájí Ibráhím’s semi-devil, we reached the Mésah, a
finer river here than at Sús. Its course was S.S.W. We rode along its
banks through a fine and populous district, called Assa, and crossed
it at the great Sók (Tlátah.) Here we met the Sheïkh of ’Akúlí, with
twenty horsemen. Our party stopped; it was a trying moment for me:
the two parties held a council, and after some ten minutes, the
muhabbah-bik[91] (welcome) was pronounced. Here Hájí Ibráhím’s
semi-devil was sent back, and one of the other party took his place,
and conducted us to the house of Sheïkh ’Alí at Tamasert, in the
populous district of ’Akúlí, from which the sea is distant about a half
mile. The people here are said to be very bad characters, and their
looks confirm the tale. We had tea and kuskusú. The Sheïkh was ill,
and I was required to cure him, and a dozen others; but I pretended
to be unwell, and with this view I went without food, for the second
day. Some of Abú’s countrymen came to play and sing to him; and
thus kept me awake till midnight: afterwards the vermin, which were
a worse plague than last night, prevented me from sleeping.
Wednesday, April 20.—Therm. 70°. Heavy rain. Up at five A.M.
After eating and drinking, the people took me out to find a spring;
they had water enough, and so I pretended to point out the spot
where they are to dig. We got off at nine, accompanied by Sheïkh
’Alí. Owing to the rain, we travelled very slowly. I fear that I have had
to pay dear for passing this place. We arrived at the residence of a
great saint. This humbug has the power of taking me any where
through Sús. I bought him for dollars. At this point the Sheïkh
left us to return home. The country is completely cultivated: it is
backed by four regular rows of limestone-hills, which serve as a kind
of embankment against the desert. They are now cutting the corn,
which produces more than one hundred fold, most of the seeds
throwing out four stems, and some five. I am not over-pleased with
my conductor, Hájí Majíbí, who, I see plainly, is making a job out of
my journey. We passed the tomb of a great saint, El Ab, where all
the party, but the Káfri (myself) offered up their prayers. We then
entered a pass, which required some hard climbing. My horse
became so lame, that I was compelled to walk the rest of the
journey, a distance of three hours; when we reached the residence
of another great saint. Here they have to prepare a room for myself,
as I cannot be permitted to enter his apartment. My grumbling to-day
has been of service. I have some Tumbucktú quilts laid over my
carpet to serve for a bed. Received some barley-cakes and honey,
but could not eat them; afterwards butter and honey, and leben (sour
milk); but it will not do: a biscuit is the only food I have taken this day,
although I have fasted for three. The Moors, and Hájí Majíbí
amongst them, who had taken some refuse kuskusú from some
labourers on the road, were eating and drinking till midnight. Not
being allowed to enter the room of the saint, I was put into the
garden, until one was prepared. This is the district of Eit Bamáram.
The water is here both bad and scarce.
Thursday, April 21.—Therm. 74°. Weather muggy, with much rain.
I had been promised that I should reach Wád Nún to-day; but after
travelling two hours, having waited till past nine for the Moors to eat
three times, we met a courier from Wád Nún, and we were then
taken out of our road to a house, where we are to stop all day. This, I
am convinced, is owing to Hájí Majíbí not having sent word in proper
time. I am most grievously disappointed, but must bear it as well as I
can; the day hangs very heavy on my hands. A lot of these beasts
came as usual for physic; called me káfrí, and all the rest of it, but
could get nothing to eat. I would not advise any other traveller to
come through Sús: they ask for every thing, but will neither give, nor
even shew any thing. They affect much on the score of religion;
never going in or out, sitting up or standing, without the Bismillah. At
eight P.M. got four eggs, and had some biscuit. I received a message
from the Sheïkh, stating that we are to arrive to-morrow. This place is
Tisseret, famed for its copper mines.
Friday, April 22.—Up at four, A.M., or rather up all night. Vermin in
myriads. Hurried away; and after one hour’s march, stopped for two
more to eat. At length we reached Ifran Ochran, the last town in Eit
Bamáram. Passed the range of mountains in Lower Sús, and
entered Wád Nún. During the route, saw people reaping corn, with
arms by their side. Wád Nún is a large town, with several small
clusters of buildings: it derives its name[92] from a Portuguese
Queen, Núnah. Hence Wád Nún is the valley of Núnah: the place is
distant from the sea a journey of five or six hours. Our first halt was
on the banks of a magnificent stream of water. When we came to the
spring (Agusa), we washed and drank, while the people prayed. A
fine line of hills protects it from the Sahra. We found here the Sheïkh
waiting for us, who took us at once into his house: at half-past five he
gave us a good dinner, which set me all right. I am much pleased
with him. After tea, all the great folks of the place came to see me:
as soon as he had read the Sultán’s letter, he sent for Hájí Majíbí:
when he came back at nine, he said he wanted three double-
barrelled guns, silver-mounted, and the barrels damascened in gold,
together with an air-gun; to which I am to add my brace of pistols. I
talked over all the wonders of England, and then wrote to Mr.
Willshire to tell him what I had done. The Sheïkh assures me, he will
send me without the least danger. I like him much: he has a large
and fine family. I have brought him a handsome present, and I fear
he expects that I shall return this way back: but this is not in the
bond. Abú is very helpless. Here one begins to see slavery again:
the house swarms with slaves, who form a large item of property.
This Berúk is a person of great wealth: he possesses forty thousand
head of cattle, and has never less than one thousand camels,
working between here and Súdán. His eldest son is a fine young
man. Went to bed at midnight, quite done up.
Saturday, April 23.—Therm. 76°. Symptoms of heat. Had my sour
milk, and then unpacked my things. The Sheïkh highly amused with
the pillow, and the little globe firing the guns: he was smoking and
laughing alternately. All goes on well. I was kept up to write my
letters, and they are not yet sent off: these people are so very
dilatory, where they are not immediately interested. Patients are
beginning to come in. The fellows, who were so free on the road,
have come a little to their senses. Lots of patients, and amongst
them a man, who had been wounded sadly. Had the whole of the
Sheïkh’s family with me: gave each of his little children a bracelet. In
the afternoon walked about and round the town: went to the Abú
Sebah’s tents; from thence to the garden, where I saw a fine crop of
apples: saw likewise several heïries, both of dromedaries and
horses. As the Sheïkh’s cattle were coming in, I perceived that what
looked like a river, was a very small stream of water: it is the Assaka.
The view from the heights is rather pretty over fields of tobacco and
plantations of date-trees; here and there a garden, and many fine
wells: saw a part of my companions, who are to be fasting to-day,
but we hope we shall have some supper, although I am sick at the
sight of my sable attendants, who have the itch very bad. I shall have
to remain here at least three weeks, although I should be glad to
shorten the time.
Sunday, April 24.—Therm. 76°. I was kept up till midnight grinding
a small barrel-organ; and fainting with hunger, I took at last to the
kuskusú, and got some sleep. This morning my patients have
increased, so that I am obliged to say “hold.” Here the people are
really ill; but so stupid or stubborn, that it is impossible to do them
any good. Gorged to their throats, they sleep half their time away,
and then wonder they are ill. The houses here are better than any in
Marocco, and look like casts[93] in plaster, being built piece by piece
in moulds. These people have no idea of taking a draught, and they
sip the most nauseous medicines. As soon as all are asleep, I take
the opportunity of writing up the journal, and reading the prayers.
This is Sók-day, and no little bustle. I do not feel very well, the heat is
so excessive. We had a capital supper of meat, mixed with grapes
and butter; a strange mixture, but a good dish. A man, who has got a
gold mine here, has come to ask me about it. Great doings may be
expected here to-morrow, as I have given to twenty persons strong
doses of medicine. But they are such fools.
Monday, April 25.—Therm. 70°. Very close; heavy dew through
the night, during which I was called up twice to visit patients, some of
whom are very ill; but I am expected to cure them by merely looking
at them; a most disheartening business. Up early and went to the
garden; returned home, and visited patients. All my cigars are gone,
and I am now manufacturing a pipe. Have the prospect of being here
a month; but I must bear it all, as I am quite in the power of these
people. Walked round the town, which is a large one: went to the
millah; looked about for springs. Am sadly bored. They will not give
me a moment’s rest.
Tuesday, April 26.—Therm. 76°. Very hot, and towards mid-day
the sun was oppressive beyond description. Had a strange request
from Hájí Majíbí, whom I hate: he had the impudence to ask me for
one of my gold watches, although he knows they are worth here five
hundred dollars. I shall put him in the hands of Mr. Willshire, to whom
I shall write strongly on the whole subject. The Sheïkh had a
conversation with Abú and myself this evening, and promised us
every thing we could desire; he assured me that he both could and
would protect us. I felt quite satisfied with this: but later in the
evening, that scoundrel, Majíbí, came and started difficulties; that
there was danger here, and much to be arranged there: he was not
aware of the conversation I had had with the Sheïkh. I was sadly
annoyed, and determined to give him a set-down in the morning.
 t
Drawn by J. G. Wilkinson Esqre. from a Sketch taken Drawn on Stone & Printed by P. Gauci, 9, North Cres .
by the late John Davidson. Bedford Sqre.

Style of Buildings of Wadnoon.

(Large-size)

Wednesday, April 27.—Therm. 70°. Made Abú write, for he cannot

talk, to this Majíbí, to ask if he meant to say that his party did not
wish me to go on: if so, that I would return, as I cared little upon the
subject, and had a ship waiting for me. He was taken somewhat
aback at this, and admitted that the observations came from himself,
and not from the Sheïkh. I shall write to Mr. Willshire, and give him
my candid opinion of this scoundrel, whose object is to induce me to
give him a bribe for his assistance. I will see him d———d first. Went
out to see my patients, when I was stopped by a marabout, who
humbugged me out of a dollar. ’Tis well to keep on good terms with
these impostors, who possess considerable influence. This journey
will ruin me, and I fear I shall break down. No person can be more
kind than the Sheïkh has been; and but for this blackguard I should
do very well. I must, however, put up with him, and patiently wait to
see how matters will turn out. The people here are a fine race; they
wear their hair generally curled, and are not at all dark; they are tall
in figure, ride upon spare horses without a bit, and with only a mere
rope put round the nose and neck of the animal; they have fine eyes
and beautiful teeth. The majority of those in better circumstances
have one or more of the desert-horses, which are fed entirely on
camel’s milk, and this only every fourth or fifth day. It is very strange
that they know nothing of the Jebel Khal, the black mountain; Sók
Assa is distant only one day’s journey; Tatta four; Akka five; Tódeny
twenty; from this to Arowán is another twenty; and thence to
Tumbuktú seven. There is another route to Tumbuktú. From hence
to Woden or Weddán, the name better known, twenty days; then to
Tishít ten; and to Tumbuktú ten more. Caravans frequently go to
Jennah from Tishít; from thence to Gwalátah, they say often; thence
to Drah in ten days; to Táfilelt in fifteen, &c. Some of my patients are
improving; others giving up medicines altogether. There is a
Muselmán-fast to-day, which is slept away. The weather has become
very cold. The thermometer has fallen 12°.
Thursday, April 28.—Therm. 68°. Some rain has fallen in the
night. I was called up to give the Sheïkh his medicines. It is perfectly
useless doing any thing for people who take five meals a-day, and
pass the rest of their time in sleep; with no exercise and no
employment, but sitting outside their doors or inside their walls, to
see on whom they can pounce. It is really sad to look upon the two
sides of the picture, which this place presents; the one, the
possessors of the soil, the daring, hardy, and commanding
inhabitants reduced to the level of the brute by his indulgence in food
and sleep, with the past forgotten, the future uncertain: the other
subject to slavery in its most abject form. A large káfilah is expected
from Mogadór to-day or to-morrow, and one from Súdán in a few
days. These will enliven us; but I hardly dare venture out. The
Christian is still upon me. The population may amount to two or three
hundred families, together with twelve Jewish, who are the working
classes, and manufacture good guns and daggers, ornaments in
silver, brass, &c. They are also the tailors and shoemakers, and do
the iron-work. The Muselmáns are the intermediate merchants, or
cultivators or breeders of cattle, which are very fine. There are some
Talebs here, and one has written for me a few prayers most
beautifully. Four káfilahs leave this place annually, consisting each of
slaves varying from three hundred to one thousand. At that time a
large encampment is formed outside of the town, where they collect
and prepare for the journey. I have been used most rascally by
Majíbí: I wish I dared kick him. Went out again to look for water: had
a conversation to-day about Christians, whom these people conceive
to have no idea of any religion. I tried, but in vain, to explain the
matter to them. I have evidently some foes here, because I will not
submit to be plucked unmercifully. I should be left without a penny or
a rag, were I to give all, or even half of what they endeavour to extort
from me. I am fairly tired out. The weather feels very cold. The
thermometer is down to 60°. We have had some rain to-day. I am
anxious to get out; but fear I am in for at least another month, and
must bear it.
Friday, April 29.—Therm. 58°. The wind is still east, and all are
suffering from the cold: I feel the effect of it, being but thinly clad. It
tells pretty sharply to a man with bare arms, legs, and feet. It is a sad
state of existence, where no one cares for his fellow, and throws off
a person the moment he ceases to be useful. As soon as they have
got what they want, they care not what becomes of you. I hope this
is not the case with the Sheïkh, who is certainly a very superior
person; but I find I shall have great difficulty in managing my affairs
here. Abú is not competent for this. To-day we are to have a private
conference with the Sheïkh, as soon as all the persons are gone to
the mosque, which is here a mere circle of large stones. The kiblah
is not quite due east, but rather to the south of it. I wish the Sheïkh
was quite well: but it is impossible to do him, or any of these people
here any good, with their five or six meals a-day, and without
exercise of body or mind, except a constant craving after sensual
enjoyments and for gold, gold, which is always uppermost in their
thoughts. The subject of Beïrúk’s[94] communication was to have an
English consul resident at his port,[95] and to open a trade direct with
England; that for this purpose he would send one of his sons to
London to manage his affairs; that by these means the route to
Súdán would be opened at once; the whole distance be performed in
forty or forty-four days, and a large trade be carried on; that a courier
would perform the journey to Súdán in fifteen or twenty days,
according to the heat—more wonderful for the man than the beast;
that England would receive in exchange gum, almonds, wool, hides,
ostrich feathers, ivory, and all the produce of Súdán, which would
find its way to Wád Nún rather than by a lengthened journey to
Marocco. I wrote to Lord Glenelg on the subject.
Saturday, April 30.—Therm. 60°. Wind still east. The Sheïkh now
thinks it will be impossible for me to cross the desert for the next four
months, owing to the great heat. The last caravan-kafilah left only a
fortnight before I arrived, and none go during the summer. I told him
that I ought to be sent on to overtake it. This he promised to do, if I
wished it; but he warned me of the danger of all the party perishing
from the want of water, as all the springs are then dried up, and the
camels cannot carry heavy loads during the hot months. I have
written to Mr. Willshire, and a courier has been dispatched to
Tumbuktú to say that a Christian is coming, accompanied by the
cousin of the King, Hámed Libbú. Hájí Majíbí now finds that I am too
canine for him to be in the same apartment, and thank Heaven he
has removed. I have the utmost contempt for this beast. The
population of this place rather exceeds six hundred, with great
capabilities for increase. The Sheïkh has about four hundred horse
that he could bring into the field. Went to the Millah, where I saw a
very beautiful woman anxious to get away. Her husband is one of the
principal workmen here. Provisions are cheaper than in any other
place. A good bullock may be purchased for 20s. to 30s.; heifers,
15s.; a sheep, 2s. to 4s.; fowls vary: I paid ½d. each; bread, ¼d. per
lb.; wheat, 5 to 6 pesetas; barley, 3 to 4 do. A camel varies in price
from 20 to 30 dollars; a slave from 20 to 100. All accounts are kept in
mitcalls.
Sunday, May 1.—Therm. 50°. The people are half killed with the
cold. Read the prayers. Received newspapers from England through
Mr. Willshire, and walked round the garden. The cold was so intense
this evening, that I was compelled to put on two cloaks. The Sheïkh
is still harping upon his favourite project, and complaining that all his
profits go into the hands of the Sultán of Marocco by the trade
through Mogadór.
 Monday, May 2.—Therm. 60°. Symptoms of the weather
becoming warmer. This will be a great comfort to me: bare feet and
arms feel the cold too severely. Fasted all yesterday; hope to get
something to eat to-day, as there is a savoury smell of kabábs. It is
wonderful to witness the fear the children have of a Christian. The
itch has broken out with violence amongst the people: I suppose I
shall have my turn. There is one comfort in the cold; it drives away
all the vermin, to which the people here are quite indifferent, as their
skin is so thick, that neither lice or fleas can penetrate it. The káfilah
from Súdán is expected in twenty days. The cold felt here is not
unusual at this time of the year, as our winter is their hottest season.
Am extremely anxious to hear from Mogadór.
Wednesday, May 4.—Therm. 60°. Weather warmer; but I still feel
the cold: went only to the gardens. A part of the káfilah is just
arrived; it made its journey in haste: it brings accounts of a war
between the Fellátahs and Bambári. This will make it rather awkward
for me, should hostilities continue, although I do not pass in the
immediate vicinity of the people of Bambári.
Thursday, May 5.—Therm. 60°. Suffering from a severe cold to-
day, did not go out.
Friday, May 6.—Therm. 68°. It got very warm towards noon. I
have now been a fortnight here, and with every prospect of being
detained a month longer. I am bored to death by the people, of
whom the more I see the worse I like them. Had a visit from Sheïkh
’Ali, and a part of his tribe: I was obliged to be civil, lest I should have
to return to Suweïrah; as in that case he would protect me. Health
but indifferent, as I can get no peace or quiet from the importunities
of the people here. Three persons have just come sixty miles to ask
me to tell them where the silver is to be found, that they know is in
great plenty about Tamenart. The old mines are not worked; but the
nokrah is in the field (ground). I told them it was impossible to give
an answer without visiting the spot, or seeing some of the stones
from it. If I am to stop to make them all rich, Heaven knows when I
shall come back. As I have the character of a magician, every dirty
devil in and about the place claims a prescriptive right to the entré,
and the beasts come loaded with vermin. Took a short walk, and
retired to rest.
Saturday, May 7.—Therm. 70°. Weather beautiful. Feeling myself
much better, I strolled to the water, which is not a river, but a kind of
lake. Met with rhododendrons in full flower, and saw a great variety
of odoriferous shrubs, with an abundance of tortoises. I was followed
by one of the Sherí beggars for money. A nephew of the Sultán has
got off under[96] .........[97] order. The river Assaka is to the south of
the mountains that enclose Wád Nún; but I can gain no information
about it. Sick at heart with my evening parties, which occur quotidie
(daily). Received letters from Mr. Willshire. It is lucky that we are
here: we have done the big wigs.
Sunday, May 8.—Therm. 70°. Weather is becoming quite warm;
was up early, and read the prayers: sent Abú to the Sók, and tried to
purchase a dagger, but it was too dear. The Sheïkh’s son bought one
at night, but it was not equal to the one I had seen. Found a
document relating to the Auléd Deleim, one of the Arab tribes: took a
walk with Sheïkh Ali, whose people returned to a sheep-killing, &c. I
have no chance of sleeping, as they are to leave at day-break.
Monday, May 9.—Therm. 72°. Weather beautiful. The camels are
collecting for the Sók: the best will not fetch more than thirty mitcals,
and good ones are to be bought for twenty. This animal changes its
name every year for the first nine years; but after that time, it is the
jemál. In the first year, and while suckling, it is el howar; in the
second, el ben áshar; in the third, el bellibún; in the fourth, el hak; in
the fifth, el zoa; in the sixth, el thání; in the seventh, el erba’; in the
eighth, el siasí; and in the ninth, el jemál: the female is called nákah:
it has been known to work for thirty years; after which they are
turned out. The Heïri horse does not cost more than from sixty to
one hundred dollars. All kinds of cattle and food are cheap to a fault.
With regard to their buildings, the rooms are long and narrow, but
without windows, as the doors answer for that purpose; and there
they keep their guns, swords, saddles, powder-horns, &c. Driven out
of the room by vermin. At four, A.M., I commenced washing my
clothes.[98] The Jewish gentleman was offended, that I did not pay
him a visit on the Sabbath: after this, I helped to cut up the sheep,
and set about preparing my own food; but as these people think I
dislike what they cook for me, I ate a little by way of training, and I
shall now have a daily dose of it. Abú gets more helpless daily. I fear
he has become religiously crazy. Walked to the water, and then had
a large party in the evening, which kept me up till midnight.
Tuesday, May 10.—Therm. 76°. The heat is returning again; very
sultry at noon. Saw the Sheïkh’s three wives, and his numerous
family of sons and daughters; they were more pleased with me than I
with them; there were two pretty girls amongst them, but very dirty:
the Sheïkh’s forty slaves, and all the family, were out to see one of
the ladies off. Walked round the whole place, which is larger than I
thought: ascended a hill that commands all the approaches to the
town; it formerly had a fort upon it, and should have it now. On the
east of the town there is a large enclosure, surrounded with walls,
where the great Sók is held. There are twenty large public ovens for
cooking meat and bread; ten smaller ones for fritters, made of honey
and butter; and some for sphynge and kuskusú, and many matmórs
for corn; and a good supply of water.
All are in expectation of this great day, or rather of these three
days. Sidi Hasan, and all the people from the neighbourhood, will be
here. Beyond the enclosure is a very neat tomb of the Sheïkh’s
predecessor, from which there is a good view of the country. On the
plain are many scattered villages, and four extraordinary hills, distant
from each other about one thousand yards. By the last is meant the
mountains which shut in a part of Wád Nún: in the back ground is a
fine range of hills, about one thousand feet high. I am now in my
third week here, with every chance of detention for three or four
weeks longer. I got rid of my evening party by pretending to be ill.
Wednesday, May 11.—Therm. 76°. Weather most favourable for
acclimatizing me for the Sahrá. Went to the house of ’Omar to see
Banna; had two ladies to examine. There was too great
fastidiousness on the part of some, and too little on the part of
others: from this I went to the Millah. My pretty patient is better to-
day, but is very stupid, as they all are: the Jewesses bear away the
palm of beauty; and dirty as they proverbially are, they are
cleanliness itself, as compared with the Arab ladies, whose filth, dirt,
and misery, are dreadful. A consul lives here, which is quite absurd.
Received many blessings. Had some disturbance about my horse:
the people are beginning to find fault, and my food is falling off; nor
do they give the same hearty welcome as formerly: the fact is, one
must be always giving to get on with these people. I took to my haik,
and like it much better than the sulham. I am nearly devoured by flies
by day, and fleas by night. Am pleased more and more with Hájí El
Khirefí, who is to take us, I hear, to Súdán, where he has been
twenty times. My evening party was much better behaved than
usual.
Thursday, May 12.—Therm. 75°. Went to breakfast with Solomon
the Jew, whose wife is making up my shirts, and mother washing my
clothes; but such is the fashion of the place. Went some distance up
the bed of the river, which is now quite dry. Nothing is talked of but
Sidi El Rásí and the Moutardi, or the forthcoming great Sók. Food is
very bad, and the meat stinking. Saw a beautiful gun that was made
here; the Sheïkh promises to get me one[99] before I go. Some rain
fell before noon, and it became quite cold, as evening came on. To-
day I had many more lady-patients, as Abú calls them; their
complaints are curious. One is to be fattened up to thrice her present
size. Several wish to know how they are to become mothers: many
want me to give them the powder which Christians have to make
people love them. Eyes to be cured out of number; and as they are
far too many for me to attend to all, I have selected two, who are
very ill, and whom I think I can cure, and I have put the rest away as
incurable. Rain has fallen all round, but has not yet reached here.
The husband of the pretty Jewess has sent to say, that he shall feel
hurt, if I do not breakfast with him, as I had breakfasted with
Solomon. I promised to go to-morrow.
Friday, May 13.—Therm. 78°. Went to breakfast with the pretty
Jewess; her husband is a man of some information. We had too
much to eat: afterwards walked about two miles up the bed of the
river, which, when full, must contain a large body of water. Visited the
Arab tents; on returning, saw some very fine women, but they were
beastly dirty. Morality is here at a very low ebb; the husband
prostitutes his wife, and the father his child; and this is considered no
disgrace, if it is done for a valuable consideration, and not for love.
Witnessed a very disgusting scene with the Sheïkh; he has three
wives all living, but he still likes his slaves: his fourth wife died lately;
she was an Arab of great beauty, for whom he gave two hundred
camels, twelve slaves, and a great quantity of produce. His eldest
son is a chip of the old block, and is running after every woman he
takes a fancy to, the pretty Jewess excepted, whose person is
considered sacred. Three Moors have destroyed themselves for her
in a fit of love, and all come to see her. As she is a patient, I can visit
her daily. I am becoming very impatient, and the people tell me I
have a quick temper: but the fact is, time is no object to the people
here; their care is merely how to waste it; as soon as one meal is
finished, they want to sleep till the time for the next arrives. It is quite
dreadful to see the sad state to which human nature is degraded in
this place. The small-pox has broken out with great violence, and I
have to run the gauntlet without the least chance of escaping from it.
A slave was brought in, charged with attempting to run away; it
appears to have been a little love affair: he was punished by having
a fifty-six pound-weight fastened to his leg.
Saturday, May 14.—Therm. 74°. The poor creature is still chained,
and has not a drop of water, although it is now mid-day. The Sheïkh
should have clean hands before he thus punished others. Went out
again to the bed of the river, and made the round of the Khiesin: met
many beautiful women, if they were only clean. Their husbands are
all gone to Súdán; had to prescribe for some fifty of them; they
wanted me to make their faces of the same colour as my legs and
arms. My watch, rings, &c. were a great object of curiosity with them:
had a little difficulty in making some of them shew their tongues,
which they consider a mark of impudence; they all like to be closely
examined; their figures are perfectly beautiful; most of them were at
work. I had prayers and thanks in abundance. One very merry lass
had on her neck a curious collection: it embraced a little bag of
spices and scents; the nail of a horse-shoe; a leather charm, called
horse; a broken shell; a large glass bead; another horse; a shell
again (habha); a small habha, consisting of a circular piece of agate,
and a large horse at the centre, from which was suspended the horn
of a young ram; and the same things were repeated, forming the
circle. Some of the women work beautiful háïks, blankets, and
carpets. In the large tents are two beds raised on feet, with a cradle,
the canopy for the bride. There are two tents in each inclosure of
thorns or prickly pears. Visited the Millah, and then home.
Sunday, May 15.—Therm. 76°. Had a long conversation with
Zeïn, who was at Tumbuktú when Major Laing was killed.[100] It
appears that Hámed Libbú gave all the protection he could; but that
the Sheïkh, to whose care the Major was entrusted, expected to gain
a large plunder by his destruction. Zeïn had seen also Caillié[101]
several times during his stay there. Things have now changed. The
government is now Fulání. Hámed Libbú killed four thousand of the
Tawáriks in one day, and has quite reduced that tribe to subjection.
These marauders are, however, still in force between Tumbuktú and
Sakatú. A large portion of the former place, inhabited by the
Tawáriks, has been burnt down. Zeïn tells me there is no chance of
my getting to Sakatú. The Wád and the river are both beset by the
Tawáriks. The distance by land is forty days to Jennah, which is
distant from Tumbuktú eight days; from thence to Sansanding and
Ségó four or five days; and from thence twenty days to the source of
the river. To Kóng he did not know how long the journey was; but it is
very distressing, and is all performed on foot. Read the prayers. Day
very hot towards noon. There is a little quiet to-day, as all the people
are out at the Sók; which has been but badly attended, as there is no
arrival from Suweïrah, and the káfilah will not be here for some days.
Walked out and looked at Wesnúnah, which is about six miles south,
and to As-sérir about four east. The Sheïkh has about forty villages,
containing a population, they say, of twenty-five thousand. My spirits
are much depressed to-day. My position is truly miserable: I am
bored to death, and obliged to submit, through the fear of making
enemies amongst savages. I have scarcely a book to while away the
time, and no means of improving myself, or getting information from
others. I have at last learnt the name of the river; it is the
Bontkonman, or, as some call it, Buatkuman: it is called also
Mulasar. The large river that is laid down in the maps, as the Akassa,
runs nearly due east and west, flowing through the south of Wád