[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: option software



PureBytes Links

Trading Reference Links



----------
> From: rudolf stricker <rst@xxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: option software
> Date: Wednesday, July 08, 1998 3:00 PM
> 
> On Tue, 7 Jul 1998 22:06:58 -0500, you wrote:
> 
> >I was interested in the List's comments,recommendations,and experience
with
> >option software packages. 
> 
> Can you please give  some  hints  on what a  option  sw package should
> do for  you? - Trading optons of e.g. a main stock index,  I see no
> need for any special option sw. - Any hints?
> 
> mfg rudolf stricker 
> | Disclaimer: The views of this user are strictly his own.

To: Rudolph and other interested RT'ers.
I have several years experience trading options, taking
about 100 positions a year although not evenlyspread in the year. 

Your question sounds naive but maybe you're not experienced
with options. 
To evaluate options before trading you need selected data,
such as Historical Volatility, on the underlying and of course
you should see the Greeks for each position. 
A graphic chart of the Profit and Loss of a position is useful
and very necessary if you're doing Spreads.
All this applies equally to Index Options as well as Equity Options.
I have experience in both. 
If you're trading end of day and are willing to manually input
the Option quotes then you won't need proper Data feeds
(Option quotes, Open Interest, Volume) but if you value the
latter then programs with proper data feeds are necessary.

You need to cut down on the manual, mechanical work and
spend time on interpreting the evaluations put out by the SW.

Enough said. If you have difficulty understanding some of the
terms I mentioned (deliberately) above then I suggest you
pick up some of the better texts on Options and study one
of them. Or take an inexpensive course. There is a group of 
instructors sponsored by the different Exchanges
traveling to different parts of the country giving free lectures 
on Options - both an Intro , Advanced and a Workshop.
Contact the OCC.
Also when you read the texts (MacMillan, for one) work out
the examples on your own instead of just reading. 
Options are not simple.

Good luck,
Stan Rubenstein