Option Trading Tips - Comments FeedComment Updates for Option Trading Tips
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Sun, 19 Feb 2017 16:47:38 -0600Sun, 19 Feb 2017 16:47:38 -0600http://optiontradingtips.com/pricing/free-spreadsheet.htmlHi Luciano,1) The spreadsheet here calculates the option greeks. In the Excel formula OTW_BlackSholes() just modify the second input from ;quot;p;quot; to either ;quot;d;quot;, ;quot;g;quot;, ;quot;t;quot;, ;quot;v;quot; or ;quot;r;quot; (without quotes).2) Yes, the greeks for a strategy is the sum of the individual legs....
http://optiontradingtips.com/pricing/free-spreadsheet.html
http://optiontradingtips.com/pricing/free-spreadsheet.htmlSun, 19 Feb 2017 16:47:38 -0600Sun, 19 Feb 2017 16:47:38 -0600http://optiontradingtips.com/pricing/free-spreadsheet.htmlHello Peter,I got two questions.1) Do you know where I can get an add in for excel to calculate option greeks?2) How do I calculate the greeks of a multiple legs strategy? E.g.Is the ;quot;total;quot; delta the sum of the single legs deltas?Thank you and regards.Luciano....
http://optiontradingtips.com/pricing/free-spreadsheet.html
http://optiontradingtips.com/pricing/free-spreadsheet.htmlSun, 19 Feb 2017 11:27:37 -0600Sun, 19 Feb 2017 11:27:37 -0600http://optiontradingtips.com/greeks/rho.htmlHi, Could someone explain how the conversions/reversals would hedge Rho ? I didn;#039;t understand why .. Thank you !...
http://optiontradingtips.com/greeks/rho.html
http://optiontradingtips.com/greeks/rho.htmlThu, 16 Feb 2017 09:14:00 -0600Thu, 16 Feb 2017 09:14:00 -0600http://optiontradingtips.com/options101/payoff-diagrams.htmlHi Ali,Yes, fair point there. The graphs label the blue line as P;amp;L; some of the content probably needs to be updated. Thanks!...
http://optiontradingtips.com/options101/payoff-diagrams.html
http://optiontradingtips.com/options101/payoff-diagrams.htmlMon, 06 Feb 2017 04:11:28 -0600Mon, 06 Feb 2017 04:11:28 -0600http://optiontradingtips.com/options101/payoff-diagrams.htmlDear author, I am sorry, But the ;quot;blue line;quot; you talked about is the ;quot;Profit;quot;. Its not the payoff. Payoff is the line which doesn;#039;t represent the impact of the Future values of costs and Premiums paid or received. Actuarial Student...
http://optiontradingtips.com/options101/payoff-diagrams.html
http://optiontradingtips.com/options101/payoff-diagrams.htmlSun, 05 Feb 2017 04:10:46 -0600Sun, 05 Feb 2017 04:10:46 -0600http://optiontradingtips.com/options101/index-option.htmlHi Dean,You can trade both of these products using Interactive Brokers. Here is a screen shot of the NASDAQ options just now:
I can;#039;t show DAX as I haven;#039;t subscribed to receive DAX market data.I;#039;ve emailed you also....
http://optiontradingtips.com/options101/index-option.html
http://optiontradingtips.com/options101/index-option.htmlSun, 15 Jan 2017 19:53:25 -0600Sun, 15 Jan 2017 19:53:25 -0600http://optiontradingtips.com/options101/index-option.htmlHi,Im looking to trade european style options like dax and nasdaq. Which broker provides the products. Can i see the options chain on the exchange website. Im a small investor and Im not interested in binary options. Can you please send me the details to my email address: [email removed ] ...
http://optiontradingtips.com/options101/index-option.html
http://optiontradingtips.com/options101/index-option.htmlSun, 15 Jan 2017 01:09:06 -0600Sun, 15 Jan 2017 01:09:06 -0600http://optiontradingtips.com/strategies/call-bull-spread.htmlHi Amol,Yes, if the direction is wrong, you will lose capital. For ;quot;long;quot; options/spreads, the most you can lose is the total premium you have paid to buy the option/spread. So, to achieve the lowest loss or lowest entry point to risk, is simply the cheaper the option....
http://optiontradingtips.com/strategies/call-bull-spread.html
http://optiontradingtips.com/strategies/call-bull-spread.htmlThu, 12 Jan 2017 17:26:04 -0600Thu, 12 Jan 2017 17:26:04 -0600http://optiontradingtips.com/pricing/free-spreadsheet.htmlHi Mike,Thanks for the feedback, appreciate it!I see what you mean, however, as stocks don;#039;t carry a contract size I left this out of the payoff calculations. Instead, the correct way to account for this when comparing stocks with options is to use the appropriate amount of shares that the option represents i.e. for a Covered Call, you would enter 100 for the volume of shares for every 1 option contract sold. If you were to use 1 for 1 it would imply that you only bought 1 share.Up to you t...
http://optiontradingtips.com/pricing/free-spreadsheet.html
http://optiontradingtips.com/pricing/free-spreadsheet.htmlThu, 12 Jan 2017 17:23:42 -0600Thu, 12 Jan 2017 17:23:42 -0600http://optiontradingtips.com/pricing/free-spreadsheet.htmlFYI,You have an error in your spread sheet depending on how you look at it. It involves the theoretical graph vs the payoff graph with a stock position involved.. For your payoff you id the leg as stock and do not use the option multiplier. For the theo and greek graph you always multiplying by the ;quot;multiplier;quot; even for stock legs so your calculations are off by a factor of the ;quot;multiplier;quot;.PS Do you still maintain this? I have expanded it and can contribute if you are.Mik...
http://optiontradingtips.com/pricing/free-spreadsheet.html
http://optiontradingtips.com/pricing/free-spreadsheet.htmlThu, 12 Jan 2017 06:26:04 -0600Thu, 12 Jan 2017 06:26:04 -0600