Saturday, June 12, 2010

RE: [ConservativeOptionStrategies] Re: Risk/reward graphs

 

As far as free goes…pretty good stuff at TOS.  Just got back from a 3 day Optionetics conference.  Now THERE is some graphing software, but it is something like $80 per month;  you get a lot more than that.  It is where I do all my searches for target underlying, strategy searches, and lots more.  The free site is pretty good too!

 

www.optionetics.com

 

Pete

 


>
> Louis:
>
>
>
> Consider opening a paper trading account at TOS. You will have access to
> their tools and graphing which is one of the best in the business.
>
>
>
> Ken
>
>
>
>
>
> From: ConservativeOptionStrategies@yahoogroups.com
> [mailto:ConservativeOptionStrategies@yahoogroups.com] On Behalf Of Louis
> Sent: Friday, June 11, 2010 11:46 PM
> To: ConservativeOptionStrategies@yahoogroups.com
> Subject: [ConservativeOptionStrategies] Re: Risk/reward graphs
>
>
>
>
>
> Thanks for the suggestion.
> I trade out of my IRA which is at Fidelity and they provide the OPtions Pro
> streamlined version which lacks the graphing feature. I don't trade enough
> for the full package so I've been using OIC until I find a better one at a
> price I can justify.
> Lou
> Lou
>
> --- In ConservativeOptionStrategies@yahoogroups.com
> <mailto:ConservativeOptionStrategies%40yahoogroups.com> , "RobertH"
> <robhansen5252@> wrote:
> >
> > Glad to see you are taking a look at risk graphs. Picture worth a thousand
> words.
> >
> > Getting back to your "What am I Missing" thread from last week, make sure
> you put your proposed position on a risk graph once you become proficient
> with it. I find the TOS platform the easiest to manipulate when it comes to
> comparing possible positions and adjustments. All of the typical options
> strategies have a risk/reward graph "look" to them, and you will become
> familiar with the look of a vertical spread, condor, butterfly, etc. You
> will see how a covered call position "looks" just like a short put, along
> with many other synthetics. Still won't make you money, though. You have to
> do that yourself!
> >
> > Best of luck,
> > RFH
> >
> > --- In ConservativeOptionStrategies@yahoogroups.com
> <mailto:ConservativeOptionStrategies%40yahoogroups.com> , "Louis" <loupi3@>
> wrote:
> > >
> > > I'm switching from excel spreadsheets to option risk graphs;currently
> the free one from OIC, which I find is quite nice and easy to use.
> > > I'm trying to avoid the unpredictable, which I feel attempting to
> predict market movement is and to go beyond looking at things as bullish
> strategies or bearish strategies.
> > > I have as my main goal not losing money. I think that by keeping that in
> the foreground, I should be able to maximize returns overall.
> > > Sounds sort of stodgy, but my days of standing by the roulette tables
> with half my chips on double zero are long behind me.
> > > However, no matter how cleverly you plan your strategy, volatility is
> unpredictable, isn't it? So even though I can come up with some elegant
> graphs that limit risk and provide massive upside, that can all change very
> quickly.
> > > But first, when you plot a spread type strategy on the graph, are the
> results based on future estimation of the option value considering things
> like theta and volatility, or as I suppose, purely on the underlying's
> prices vs option strike prices?
> > > And what methods are being used to attempt to control that? I hear about
> delta neutral methodology, but I'm not sure how generally applicable that
> is.
> > > Anybody want to contribute their ideas?
> > > Lou
> > >
> >
>

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