Thursday, January 21, 2010

Re: [TheOptionClub.com] Option price valuation

 

A quote from former options market maker Tony Battista in the latest issue of thinkMoney magazine (Winter 2010, p. 40):

"Options are fairly priced. If you think you see money lying on the floor, don't pick it up. Chances are you're getting into a trade that you understand a lot less than a market maker does."



From: Gayatri Maskeri <gcmaskeri@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Wed, January 20, 2010 11:31:50 PM
Subject: Re: [TheOptionClub.com] Option price valuation

 

I just came across chartbender. com today.  Their tools seem to give you what you are looking for and their subscription is free.  If any of you have any experience with it please let us know your comments.
Thanks!

Chet

From: James <amt2100@gmail. com>
To: OptionClub@yahoogro ups.com
Sent: WeI just came across chartbender. comd, January 20, 2010 10:32:40 PM
Subject: [TheOptionClub. com] Option price valuation

 

Hi all,

I was wondering if anyone could comment on what they use for option price valuation and how they integrate that into picking an underlying to focus on?
For example, while researching this (to death) I came up with a couple interesting things like Volcone Analyzer Pro and IVolatility. com has some interesting tools that graph IV.

I read the articles on this group from 2007 that mentioned Volcone Analyzer, but no one actually answered the question about it. The thread veered off.
I have accounts at TOS and OptionsXpress and I've been looking at TradeMonster' s tools, but I can't find anything on those broker sites that shows you if/when an option jumps into being really "cheap" or "expensive", in a quick scan. I'm sure you gurus can just look at the price and have a rough idea, but I'm not there yet.
How do you guys ferret out the "deals"? Add-on tools like these things I mentioned (Volcone, etc.) or somehow pull it from the broker site (TOS)?

Thanks for all the tremendous help here. This group is an amazing resource.
JimR



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