Is there any free options software out there where you can test your strategies out on actual historical data with real past market prices and options greeks? I want to test my strategies against the worst case scenarios, like market crashes and relentless bull runs. TOS doesn't quite get it done and I'd rather test them sooner rather than wait for actual market conditions to provide me with the conditions I need.
The bitcoin data is from www.quandl.com and you can use the www.hoadley.net option models that import from quandl.
Thanks for the link. Do you happen to know if it contains a visual risk analysis graph and if you can get SPY and IWM data?
Bitcoin is the asset class that has moved more than any other so will be ideal for you uses. quandl has all data for free historically.
Thanks. It looks like they have good programs. However I'm not interested in bitcoin. If I can use it with SPY/IWM data that would be perfect for my uses.
I use Hoadley. Yes, there are risk analysis graphs, vol skew etc. You can import option chain data from a number of sources, including IB, MSN etc. I subscribe to Stockwatch, under 20 bucks a month and getting the large chains like SPY is exponentially faster than IB.
How would you compare Hoadley to OptionVue (if you've used OptionVue)? Is backtesting available with visual risk analysis graphs? Do you trade based on your Stockwatch feed rather than your individual broker's feed?
I have never used OptionVue, sorry. I only use Stockwatch for the option chains. Once I've pulled in the data for say a fly, I'll update price for UL and the individual legs based on my brokers current display, because that is what I will be paying anyway. Whilst my Broker shows the Friday as expiration, in fact until 2015 sometime, expiration is actually on Saturday so in practical terms even on Friday afternoon options carry a small time premium. I thus ensure expiration date is taken as Saturday. I also then calculate IV in Hoadley rather than copy that shown on my brokers chains. I haven't used all the features in Hoadley, but I do not believe back testing is available. You can read up and get a better feel, plus he has some slides of the various features. http://www.hoadley.net/options/optionstools.htm
Bitcoin is up 12m % in 4 years, it took Warren Buffett 50 years to make 2m%, I would call that an aggressive bull run.
True, but I'd rather stick to SPY/IWM because of the familiarity. Bitcoin will surely behave differently than these and it's probably not as liquid of a market.