I was wondering if traders had any interest in such 3D representation? that seems like highly priced for what it is no? http://www.wingstarsoft.com/ Screenshot: http://www.wingstarsoft.com/PAYOUT.JPG
It is hard to figure out what OptionScape does without OptionScape specific training. The User Guide may shed some light on it, there is a lot more to the program what shows on first sight. You can find the User Guide here: http://www.wingstarsoft.com/htm/index.html OptionScape has a pretty unorthodox approach that you have to get the hang of before you can appreciate its features. Once you learned how to use it you find some pretty powerful stuff, like scenario analysis with variable IV over time, full term margin forecast, multiple expiry dates, early exercise, etc. Well, the price is in perspective of what you can get out of it. If the only thing you use it for is looking at the payout of your bull spread, you can do that free using something else. If you have several multi-legged strategies overlapping in time, if you want to know how IV fluctuation can affect them, if you want to know the affordability of your margin requirements for the full term ahead, if you want to know what happens to your margin if some of your positions get exercised early, if you want to know what happens on ex date... then you are probably making money with options, and your perception of its price to value ratio is different. OptionScape is definitely not a conventional tool... It has an "industrial strength" flavour to it at all levels from novice to advanced.
Have you guys tried the Options Lab at http://www.TheOptionsLab.com ? It only has a 2D diagram. What are the particular needs for 3D graph in option trading ?
There is no particular need for 3D diagrams, unless the info to be shown is more than what can be handled in 2D. Trying to see the effects of Implied Volatility fluctuations on payout, margining, and the Greeks over time in 2D is more cumbersome than getting the hang of 3D diagrams. Options are 4 dimensional "creatures": 1 - price of the underlying instrument 2 - time to expiry 3 - money (payout, margin) or Greeks 4 - implied volatility It is easier for the brain to make up for one missing dimension (3D) than for two. For example on the TV screen there are three dimensions - height, width, and time (i.e. it's animated) - and the fourth dimension (depth) is filled in by our brains. 3D is not the purpose, it's a result of evolution facilitated by the availability of greater computing power.