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Options can be just as complicated as you care to make them. Suggest you
check OpCalc Professional vers 3.1. I'm a user, not a guru--even I can
use it to pick best option choice. So, you know it can't be too hard.
More info call 1-800-538-3822 ask for Ed. Yes, they do support
you--answer your questions. T.C.
On Fri, 08 Aug 1997 12:26:28 +1000 Ben Clayton
<s319017@xxxxxxxxxxxxxxxxx> writes:
>A few questions concerning Options.
>
>I was wondering if OptionScope is a good pricing model for options.
>If not what is the best Option Pricing Model.
>
>Do you guys know much about market makers. They seem to be the ones
>to
>win, in Option trading.
>
>They develop Synthetic Equivalents compared to just buying Calls or
>Puts.
>For example suppose a market maker finds 100 calls, expiring in 30
>days,
>trading at $4 1/4 and the puts at $3 1/4 with the underlying stock
>trading at $100. He can put all of these together to win. He sells
>the
>call, buys the put and buys the stock. He takes in $1 and, at the
>same
>time, hedges away his exposure to any changes in the price of the
>stock
>prior to expiration.
>
>My question is can the small guy do this to make money. If so
>wouldn't
>it be good to set up a group of people to do it with. One person owns
>the stock, the other person writes the call and the other buys the
>Put.
>And the profit is split up.
>
>This is just an idea and I would love any criticism.
>
>Yours Sincerely
>
>Ben Clayton
>
>
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