Best Backtesting / Analyzing Software for Options

Discussion in 'Options' started by RedEyeFly, Oct 28, 2008.

How you analyze your option trades

  1. Don't need a tool - I'm a Greek God

    2 vote(s)
  2. 3rd Party Software - For a fee

    0 vote(s)
  3. 3rd Party Software - Free

    3 vote(s)
  4. Broker's Software - For a fee

    1 vote(s)
  5. Broker's Software - Free/Included

    5 vote(s)
  6. Combination of Broker's Software / 3rd Party

    0 vote(s)
  1. Hi all,

    I'm currently trading TOS and running the a free trial of OptionVue software. My first impression is that I'm not impressed with its interface which is not very intuitive to use. What other softwares are you currently using to either analyze live trades and/or backtest/practice possible strategies/position management?

    Looking for suggestions, cost is not the biggest factor, but success with product is.


  2. Also, If anyone has any software they really like, it would be great if they could throw up a screen shot so we can see the basic layout and technology.

    (No you don't have to give away how rich you've become or your incredible strategy :)
  3. Back testing options is nothing like back testing stocks.

    There are so many variables that go into pricing an option that it impossible - yes impossible - to find duplicate market conditions so that the prices that options displayed in the past will have any meaningful correclation with current and future option prices.

    Implied volatility can change in a minute. And it can change substantially - so much so that the effects of a price changeinthe underlying stock would be dwarfed. Calls can go up in price when markets decline. How can you back test that?

    Save yourself the trouble. You cannot back test option strategies. What you can do is make estimates of what will happen in the future - and then determine the option prices - based on your assumptions.

  4. dmo


    As I've mentioned before, I'm partial to Excel add-in packages that allow me to construct applications that crunch options and display the results in a way that is useful to me. Years ago I started with Montgomery Investment add-ins, but recently switched to Hoadley.

    OptionVue to me is complicated to navigate and doesn't do things the way I want. It reminds me of an old hospital - one wing built on another and on and on over the years until it's tough to find your way around. Not to mention the cost of the software and all the datafeeds, which is pretty substantial.
  5. Thanks dmo, I'll check into Hoadley .