Spredz
- An options analysis, risk management, or equity spread strategy speculations
tool,
with
implied volatility calculator and tracker for computing puts and calls premiums
prior to
investing in
options. Spredz works with American and European styled, LEAPS®
and Standardized options.
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Spredz Version 6.1
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Spredz Version 6.1
Spredz Version 6.1
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Spredz computes options prices by incorporating your inputted strike, month, premium, and other option pricing variables into a binomial numerical method options pricing approximation model, returning each option’s implied volatility value. You edit each displayed volatility value as necessary, based on volatility statistics shown from your previous options speculations (stored in Spredz database), and/or from your own knowledge of implied volatility activity. You then submit these volatility values for use in pricing of the speculative options for a pre-determined future date, based on your expectation of the underlying security price. Appropriate commission pre-entered rates, are combined with these prices resulting in a net return for each option speculated. If an option spread strategy is being speculated, the cumulative net totals for the combined legs of the spread/strategy is displayed. Spredz calculates, then affords you the opportunity to save each option’s implied volatility value to a historical database for consideration with subsequent speculations. Each speculation is also automatically saved to a current-day reference file, and to a database file for future access. Spredz displays options premium values and implied volatility data to four decimal places as calculated. Spredz Typical Program Operation Sequence (Overview):
This symbol is queried in Spredz database. If found, basic pre-inputted information appears on the subject stock or index for your editing/updating. If no data exists for this symbol, a new record is created for this symbol.
Full results of each speculation appear for your review and analysis. Make input variable changes and observe price and net results responses. If you would rather speculate on a Buy-Write strategy, simply click on Include Stock -"Yes", button from the results pane of the strategies that allow for this type of strategy. With the Call Buy Sell (CBS) spread for example, replace the Buy Call quantity with number of shares of stock. This scenario is a Buy-Write where one longs stock and short calls (covered calls). Change the final stock price, and/or the closing trade date, and/or volatility, and/or quantities and see resultant changes to the 'Net Total' of the speculation - commissions included. Print the results, then return either to the previous spread information input window (tab) for re-input of premiums, or to start speculations on a new spread or strategy. Completed options speculation strategies are saved automatically for the day You may choose to save the current implied volatility values to their respective call or put database (library).These values are represented in your Historical Implied Volatility data next time around. Spredz stores a maximum two volatility values per security symbol per option type (put or call) per day. You have the choice however, to overwrite previously stored current-day data. Where three-legged spreads (such as Variable Ratio Writes or Butterfly spreads) are involved, Spredz lets you choose which one of the third volatility value to be saved. For spreads involving one call and one put option (such as the Synthetic Long or the Buy Straddle spreads), only one call volatility value and one put volatility value is available for storage to their respective call and put database table If a single execution (non-spread) is the only speculation for a security for the day, then the bid and the ask premium implied volatility values are stored as the low and high volatility numbers respectively for that day. The more volatility values stored for each security in the put and call database tables, the more significant the volatility statistics become, thus the more confident, and the better equipped you will be in making decisions regarding options trading strategies. As success in options trading depends on the premiums you get for your trades (among other things), and as these premiums are a function of volatility, historical volatility statistics (Volatility Summary) shown with each set of output results should be weighed heavily in your buy/sell decisions. Current volatility data relative to each side of a spread, and as related to stored historical volatility values should be considered. For single executions (non-spreads), it is recommended that at least one two-legged or three-legged spread which involves this single option be also analyzed, in order to compare relative implied volatility values from option to option for the same underlying issue. Single options speculations by themselves give no indication of volatility skews - volatility relative to volatility of other call or put options being traded on the same underlying issue on that day.
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