Software for British Options

I'm looking to purchase software for Options, however, I have only been able to find one company that produces software for the British market -
Qudos Publications based in Stockport, Cheshire written by Brian Millard.

Most of the companies I have found so far seem to be American based, although two that I have found quite helpful for information are Optionvue and Essex Trading.

Can anyone tell me if software for American Options can be adapted for use with British options?

Is anybody using software from an American company and having success in its application especially with implied volatility/probability calculator, if so, could you supply its name please ?

Thanks for all your help
Steve

 

Millard's stuff is garbage (I also live in Stockport).

Let me know what your are looking for and I may be able to help. Provide as much detail as possible.

Grant.

 

We Americans are a backward lot, but it's not like we have a secret formula for pricing options that no one else uses. We ocasionally use fewer 'u's in our spelling and have fewer phrases like "bollocks", but those are relatively minor differences.

Option exercise is typically either American or European. Not that there's a demarcation across borders. LIFFE, for example, lists mostly American-style options.

Any option software should work without "adaptation" to British options. The question is whether you can get data on British markets from the software provider or some other data source.

 

FullyArticulate,

It's always a pleasure to hear from our allies in the colonies.

To clarify, if I may, your point re LIFFE. FTSE index options are European-style exercise. They dropped their US-style because they were considered somewhat vulgar for a British institution (I just made that up).

I don't know what happened to the US-style; the volume was greater than the Euro- for the majority of its life. This was possibly a reflection of UK retail investors' lack of familiarity with the distinction re types of exercise and the 25/75 steps in the strikes compared to 00/50 on the US-style. I asked clients why they differentiated and they couldn't answer.

As I've said elsewhere on this forum, the US-exercise option, so to speak, is redundant on a cash settled instrument. The only possible advantage may be in selling.

Is it not the case that Euro- are simpler to value than US- via Black-Scholes or its variants? I used Black-76 for both US- and Euro- indices. While not strictly correct for US- I was looking at relative, rather than absolute, values over time.

Interesting remark re data from London markets (not 'British' - nothing in Scotland, Wales or Northern Ireland). I've tested a few quote vendors of late and a number could offer LIFFE futures but not options.

This is continuing a somewhat guarded approach apparent twenty years ago. While US companies, for example, see marketing as part of a sales process, LIFFE try to gear it as a potential money-spinnner and are somewhat reluctant in what they let go (compare the web-sites for CBOT, CME, EUREX, etc with LIFFE.). Doesn't work and probably explains why they only have one viable contract (Euribor).

Grant (an English Gentleman).

 

As I've said elsewhere on this forum, the US-exercise option, so to speak, is redundant on a cash settled instrument. The only possible advantage may be in selling.

I'm not sure I agree. Options on CBOE's OEX, for example, provide some fascinating outcomes only possible with American exercise. (You can sell boxes for huge premiums, but you may get exercised at any point, and, on top of that, OEX options are open for 15 minutes longer than the index they trade upon).

Interesting remark re data from London markets (not 'British' - nothing in Scotland, Wales or Northern Ireland). I've tested a few quote vendors of late and a number could offer LIFFE futures but not options.

Check out DTN's iqfeed (www.iqfeed.net). I've been tracking Robusta coffee options for a month or so and the feed works pretty well.

(compare the web-sites for CBOT, CME, EUREX, etc with LIFFE.)[/QUOTE]
I'll take your LIFFE web site and raise you NYBOT's. As far as companies not understanding marketing goes (and, in particular, what their web site might possibly be used for), NYBOT has every other exchange beat.

 

FullyArticulate,

I’ll check out NYBOT. You may want look at NYSE’s site – this is impressive. Ever wondered what’s on the displays of the flight deck of Star Trek’s Starship Enterprise? This is it:

http://www.nyse.com/marketinfo/marketrac/1093535821253.html

and click on “Launch NYSE Martket Trac”. What the English can learn from the Yanks (but will they?). NYSE/Euronext merger –Tony Soprano meets Lord Olivier. This must be on NYSE compassionate grounds

I’ll certainly look at the OEX. Is there good volume, here?

Which US index options – any exchange - have high volume?

The quality of various feeds is not in question, just that some don’t offer LIFFE’s options. I tested DTN and it was excellent. My problem is with formats of raw prices various vendors use; importing this into Excel and manipulating the data. Of course, it depends on your priority – prices/data or charting/technical analysis. Indeed, it seems the majority of vendors compete on the basis of their TA packages.

Personally, I found the best feeds were Infobolsa (part of Deutsche Borse), Metastock/Reuters QuoteCenter and, what I finally decided on, Visual Charts (French/Spanish). BIS of Germany is also impressive.

Thanks, for the info, FA.

Grant.

 

OEX has tons of volume, as does SPX.

However, ETF options have gotten VERY popular lately. QQQQ, SPY, DIA all trade hundreds of thousands of contracts per day.

They're not KOSPI options, but they're not bad!

 

Thank you, FA.

Grant.