Any recommendation on good options analytics software ? I'm looking for something that allows me to compare various options for volatility, based on strike, time to expiration etc to better determine which options to buy/sell at any given time. I don't need real-time connectivity, as I only trade once in a while and can enter strike, time, and underlying manually. I currently have OptionScope that comes with MetaStock, and that doesn't have much functionality. Even a package in Excel could be sufficient. Thanks in advance !
followup: the cboe has a free options calculator similiar to what OptionScope offers: http://www.cboe.com/TradTool/OptionCalculator.asp
vikana - try Trade Prospector, it's got option analysis functions like an option montage that shows IV, TV, greeks, etc. and also has a number of comparative analyzers for different strategies like spreads, collars, etc. Also has option calculators and a graphic position analyzer. The website is http://www.trade-prospector.com
Most packages cost between $300-$1500 . Essexpro comes to mind as well as optionstar which is Excel on steroids. I found out yesterday this new site called optionclub.com. They have a web based analytical software and SCANNING functions which is hard to come by w/o paying up the yingyang. Be wary though because most of these vendors look good on paper and their sites but fail to deliver one aspect or another. Before spending the $, you need to find out exactly what you need. What bells and whistles you can do without,.etc. I spent the entire December month looking for 1. Good luck
Just a note. Depending on what you want to do, option trading software can cost between free and quite expensive. If you want to manually enter the stock volatility and the stock price, you can use free option software, go to my trader tools page at http://www.electronicdaytrader.com/tools.htm . You can download a free "Black Sholes" model if you have Excel 97 or later or use some of the free Java Applets . To use the freeware, you will have to estimate the stock volatilities. The stock volatilities list is available at the CBOE site in an Excel Spreadsheet , go to http://www.cboe.com/MktData/HistoricalVolatility.asp . A great free Option Analytic site is Roberts On-Line Applications! at http://www.intrepid.com/~robertl/ . Dr. Robert Lum's site offers several Free Option calculators. For customers who want to "SCAN" Buy writes and other strategies,I hear Optionvue works well. Go to the OptionVue site at www.optionvue.com/ .If you are a full time option trader , I have used MicroHedge with good results. Microhedge can be used with a quote package like AT Financial and is approx. $250 per month . MicroHedge is also available on hand held PC's for floor traders, see www.microhedge.com/ . J & E Research,Inc. has Option Analytic software as an add in to Excel Spreadsheets. See J & E website at http://www.jeresearch.com/ . For Option professionals & institutions Savvysoft has analytics available for Fixed Income, Electricity and Commodities. Their site is at www.savvysoft.com/ . There are many other software packages available. Without basic knowledge of option pricing and trading, these software packages may not help at all. In options, a little knowledge can make you dangerous . Check out Espen Gaarder Haug's Option page located at http://home.online.no/~espehaug/ . He has some cool free option analytics . Espen is an option modeling expert and a pretty cool dude. If you are a computer geek(I'm not), Espen has Black Sholes model available on his site in all major languages including C++,PERL ,FORTRAN.... (free to copy & use yourself) go to http://home.online.no/~espehaug/SayBlackScholes.html . Gene Weissman Lieber & Weissman Sec., L.L.C. gweissman@stocktrade.net Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document are available from your broker or the Chicago Board Options Exchange.
Hi Gene. I paid www.savvysoft.com a visit and saw a huge amount of stuff that were not bantered about in my days as a floor trader. I know the typipcal gamma,delta,vega BUT terms such as plain vanilla, accrual swaps, asians/averages, barriers/knockins/knockouts, baskets, rainbow better, rainbow worse, choosers, equity swaps, equity swaptions, convertible bonds, digitals/binaries, digital quantos, options to exchange blew me away. Tomorrow I am going to have to fight this paranoia that the counterparty to my 5 lot calendar spread knows all the above mentioned 'things' As an option trader who trades 5-15 lot flies, call spreads, straddles, do you think it is important to ramp up to these barriers,asians,et al... Thanks. Gabriel
GATrader, I don't have any experience with exotic options,knockouts and other products. Many of these exotic options are OTC(over the counter) and are written by Goldman, Citi-Bank and some large hedge funds. I traded and made markets in "plain vanilla" derivatives on the AMEX. Since these options are not exchange traded , they are not underwriiten by any federally chartered agency like the Option Clearing Corp. , which has an S&P AAA credit rating. What I find is interesting about the OTC options market is that sometimes large trades on the Option floors are a "hedge" for OTC stock or index options written by large institutions. Goldman may buy 5 year LEAP call to hedge a 6.5 year OTC call they have written for a hedge fund . If you are interested in Exotic Options and other derivative products, Dr. Frank Fabozzi is an expert on interest rate derivatives ,CMO's & fixed income securities, see his web site at http://www.frankfabozzi.com/ . Gene Weissman Lieber & Weissman Sec., L.L.C. gweissman@stocktrade.net