Re: [RT] Website for historical options chains and prices

["Ray Raffurty" <r.raffurty@xxxxxxxx>]

Hi Dave,
 
I've been searching for such data for years and 
have never found it.  The problem is that there are so many data points to 
store that no one seems willing to do so.  In addition, because of the 
nature of options you can not link one series to another (as you can with 
futures) and get any meaningful results.
 
Furthermore you can not take one factor such as 
stock (or index) price vs. option price and get any useful result, options 
are just to complicated for such simple comparisons.  For example, If you 
saw a spike in option price, how would you know that it was not the result of a 
spike in volatility?  I have also seen options spike up in price on heavy 
volume without any significant movement in stock price.  This usually 
occurs prior to a major announcement as volume goes out of the stock (people 
just waiting for the announcement) and goes into options (speculating on the 
announcement).  Dividends also effect the option 
price, because they effect the stock price when they are paid 
(x-dividend).  And there is always the time factor, all other things being 
equal, option prices will decline with time (accelerating as expiration 
approaches) as the time premium disappears.  Finally you cannot 
compare option prices from a time when interest rates are very high (the 
90's) to a time when they are low (today).
 
There are six factors which influence an option's 
price:
1)    Stock price.
2)    Strike price of the 
option.
3)    Tine until 
expiration.
4)    Volatility of the underlying 
stock.
5)    Current risk-free interest 
rate (i.e. 90 day Treasury bills).
6)    Dividend rate of the 
underlying stock.
 
The best way to trade options is to first 
thoroughly understand the underlying vehicle (stock, index, etc.) what makes it 
move and how it will react.  Once you have learned this learn how to 
improve your trading and reduce your risk with options.
 
Good luck and good trading,
 
Ray Raffurty
 
 
<BLOCKQUOTE 
>
  ----- Original Message ----- 
  <DIV 
  >From: 
  Dave Lord 
  To: <A title=realtraders@xxxxxxxxxxxxxxx 
  href="">realtraders@xxxxxxxxxxxxxxx 
  
  Sent: Sunday, March 16, 2003 12:09 
  PM
  Subject: [RT] Website for historical 
  options chains and prices
  Good morning!Is anyone aware of a website (or other 
  source) that provides historical optionschains and prices?Thanks 
  in advance -- Dave<A 
  href="">zdave@xxxxxxxxxTo 
  unsubscribe from this group, send an email to:<A 
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