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In the options software market, you can choose between 2 types
of products:
-
The low price programs (around $150), or an
additional module in some charting programs. These programs do only one
thing — calculate the
theoretical value of an option so that you can see if the actual market price is under
or overvalued. Then, sometimes a graph shows you this scenario with changes of the option premium based on the
variation of the underlying, for ONE date.
-
The high price programs (around $800 to $1500).
These programs have the same features as the 1st category, but in
addition allow simulations on option
combinations and also have scanning features to isolate series of under or over-valued options.
Very
good, assuming that your data vendor provides all these costly options series.
Once again, when
it comes to simulating a scenario, the same limitation — a graph that doesn't tell you much,
with only ONE date calculated (some programs plot 3 to 6 different dates, but
they can't display more). Thus, if you want to see, say, the 20 days remaining till expiration, you have to request
20 calculations, and even then it will not solve the problem — you still see ONE simulated
date at a
time.
These programs require
that you then calculate your
account status (if you liquidated the
position at this point), recalculate again with the next level of volatility, and then
calculate still
again to examine your net account value for liquidation at this point
— a LOT
of paper work.
How easy it would be to trade options if you could see,
on one table,
all
possible issues of your trade.
A Strategic Options
Grid.
After exhaustively reviewing options valuation software,
we were seriously disappointed to not find what we sought. We wanted a system that would allow us to see, at a
glance, all the possible issues relating to a given option strategy — the
effects of all possible outcomes on our trading accounts, based on each underlying price variation, for each day,
from now to expiration date. That would be the only way to ensure a real Money and Risk Management plan.
We wanted the ability to model alternative option
strategies and to perform What-if scenarios
based on variations
of underlying price and volatility, for each day from now till the
expiration date. We wanted to see:
-
Not 1 or 3 or 6 dates, but ALL dates remaining
till expiration
-
Not only the option premium, but also an automatic
monetary calculation, including commissions and fees
-
Not a beautiful but vague curve on a graph, but
rather a
precise number for each
date/price variation
-
With all this visible in one glance
This led to the development of SOG
!
SOG,
an xls-compatible
application, produces the above described GRID, for each possible
underlying
value, showing your net account evolution (including commissions) for almost all possible options strategies (including
up to 4 legged combinations and
calendar spreads),
a table of the results for 90 days or more into the
future. All this is totally automated.
That means 4500 simulations are
VISIBLE ON 1 SHEET! !
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More About
SOG
Main SOG
Page
SOG
Features
Trading
Dashboard
Using
SOG
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Stress Free
Trading!!!
By using Outpouring
of the Soul as
needed, either before,
during or after a
trading session, you
regain control of
your brain states
and can think clearly.
You are more
relaxed and confident.
This can give you the
edge you need to
succeed.
For
more details
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