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>Joe Frabosilio wrote: "I'm looking for an options software package, that
lets me see what >the % to double ratio is. A little more explaination,
if a stock has a option, and if the >stock moves lets say 10% does the
option move 100%, 75%, 10%?
I don't know is such a program exists but it sounds to me like you
are talking about an option's Delta. You may know that delta is defined as
the amount an option's price will change for a corresponding one point change
in the price by the underlying entity. It is expressed as a number between 0
to 1 for calls and 0 to -1 for puts. Therefore a call that is far out of
the money would have a Delta of 0, and would not move at all for a 1 point
move in the stock. Likewise a call that is well above the strike price will
have a Delta of 1 and will move 1 point for each the stock moves. An call
option at the money would have a Delta of approximatley 0.5
You can calculate Delta if you have a mind to ( Lawrence G.
McMillan in his book "Options as a Strategic Investment" gives the formulas)
or you can down load it from Value Line along with other "greeks" for a fee
(phone 800-833-0046). You may even find it on the net for free.
The problem with Delta is to be accurate it must be recalculated
for each fractional move of the stock and change in time remaining to
expiration. In practice Delta is considered accurate for most purposes on a
given day for a 10% move in the stock before recalculation is required.
I suppose that since Delta is calculated by mathamatical formula a
progeam could be written to calculate yout % to double and maby one already
exists. My queation for you is how do you plan to use it and how would such
a number help your trading?
Good luck and good trading,
Ray Raffurty
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