Risk on Options

Discussion in 'Options' started by brenden, Jun 28, 2011.

  1. brenden


    im new to options, but is there a software that would calculate risk & possible exposure of loss on options taken? call or put?

  2. Of course there is.

    1) thinkorswim brokerage has great analytical software. Open a paper money account and then access their videos on how to use it. It is fairly capable to say the least. It's free!

    2) Optionetics also has some software called platinum. This costs $$$.

    3) Peter Hoadley (spelling ?) has some add on tools for Excel that are free, but many recommend them, as well.

    Hope this gets you started.

    Free tip---Learn lots before you use real money. It is easy to lose money in this game. The more you learn before you start, the less you will lose afterwards.
  3. brenden


    thanks John
    i will check for the one for excel maybe to run macros and calculations...
    all the others, do we trade through them or do they analyze positions that i may have or take?

    thanks again
  4. I use ToS. I paper traded for five months with them before funding my account. It has great analytical tools, graphics, and trade execution. So the cost of learning to trade with a great tool set is essentially zero. (Your time is worth something).
  5. Howard is right. You don't need to trade real money for awhile and the software is good at TOS. I trade through themn a regular basis. Good luck learning to trade.
  6. hajimow


    google optionoracle and install it. it is free
  7. There's an old saying that when packing for vacation, first lay out your clothing and money, then take half as much clothing and twice as much money. Similarly in options trading, after you get set up, de-install half the "analytics" packages and fund your margin account with twice as much money. This sounds silly or naiive, but if you trade options long enough, you'll reach a moment of enlightenment when you deeply understand this. Eventually the matter always hits the fan in a way that seems inexplicable based on your Greeks -- especially if you believed your were "neutral" this-or-that Greek -- and your only defense will be having plenty of dry powder on hand.