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I'm not supposed to say this as I could get into a lot of trouble, but this fairies pricing options business is total B.S. In real life options are priced by the little green men (some are grey and apparently they are the ones who make the final pricing adjustments). Once a month, right around...

What makes you think that someone would be willing to share it with you!? On a different note, I suggest you educate yourself a bit and come back with a bit more realistic expectations.

It's no brainer, the OTC market is where the big money is.

No, you multiply daily to get annualized. Volatility increases with the square root of time.

One thing you have to consider is that when you introduce adjustments to a backtested strategy, which may have held the ICs to expiry, you change the whole probability profile, so to speak, so your win/loss ratio changes. That is, you adjust trades that would have otherwise moved back in your...

Another way of managing them is to not overleverage your account. So rather taking a big position and then sweating everytime the underlying threatens your short strike, you size your positions so that you can take a max loss on any given IC and still be within your risk parameters. The logic...

Yes, it is normal.

I know that the "black swan" event can happen both ways, but it is more likely to be a market crash than a market rush, don't you agree!? I think there are more potential "black swan" factors for individual stocks than there are for indices.

Indices don't gap, well they do but only small gaps, and your "black swan" risk is only to the downside, while stocks gap relatively frequently up and down so it is easier to manage risk with indices rather than with stocks.

If you use TOS then it should have all you need. It has all the feautres you need, well almost, it's just a matter of learning how to use the platform.

You can substitute all you want it doesn't make any difference at all. Married put=long call! Unless you hold the stock for the long term or some other purpose, trading a married put is inferior to a simple call, assuming no arbitrage of course. It's double the commissions, double the slippage...

Does have just the closing prices or does it have intraday bid-ask quotes as well? and if it does, how far back does it go?

I'm waiting for TOS to add those.:)

Would that be short or long straddles?

No worries! I had to make it up for being harsh.:)

On the "trade" tab there's a small button in the top right-hand corner (the one with the printer icon), click that. It'll bring up a mneu, choose "Export to Excel" then open an Excel spreadsheet and click "paste" or "Ctrl+V". Once you do that the entire "trade" page with all options and the info...

Well, you mentioned TOS, and I assume you meant Thinkorswim. If you did then TOS has a DDE link to excel so you can have real time quotes in Excel, combine that with Hoadley's pricing functions for excel and you got what you want. edit: You can probaly get by without Hoadley's tools all...

That's true, yet the correlation isn't perfect so you still benefit from diversification. I've been backtesting and "live-testing" just that, trading ICs on SPX, NDX and RUT. A good example is Oct expiration. I lost money on SPX, but made full profit on NDX and RUT, which offset the loss on...

You can calculate how much an option would be worth if the stock hits your stop loss. Then you divide the amount you're willing to risk by how much you would lose per option. I don't think any software actually automates this, but you could build one in excel using Hoadley's tools, for example.

If you have the amount you want to risk, your stop on the underlying and your profit target then it is just a matter of plugging in those values into an option pricing model and finding out your risk and reward at those exit points. Repeat the process for various options and choose the best...