The work on the simulator is progressing. Slow, but steady. I have got a lot of work to do right now in the bank (my REAL job, hehe), so I’ll need more time do deliver the first beta version for public testing.

Nevertheless, as they say, good things need time to emerge. As time goes by I elaborate new details and features. I have thought about several new features that make me pretty excited.

Amongst others, for example, I want to include a possibility of multiple-thread events. So you will able to compare your options strategy (portfolio) directly against itself under different conditions on the market.

The user interface will be more friendly and visual, too (than first planed)

Aaaaanyway…. The work is progressing, stay tuned!

A short update: instead of continuing improvements on the straddle calculator, I’ve been working on the Options Simulator for the last couple of days. I feel all excited about its release. It is a pretty powerful tool that lets you analyze and elaborate any option strategy without clouding your mind with complex mathematical formulas nor “greeks” (although tools to calculate these will be provided, too).

Basically you will work with your portfolio/trades and simulate your “arrangements” under different market events/circumstances (which you will define yourself). As a result you’ll get a risk/profit-profile, and a probability calculation (if you wish). Break-even points calculation is provided, too, of course.

The best part of it is that you may add as many options or shares in your portfolio as you want, short or long. This allows you to simulate/calculate virtually any strategy with options that you may find out there… or even better: without getting too deep into financial mathematics, you’ll be able to create visually strategies of your own (and name them with silly names like “double split condor iron spread” hehehe)!

I’m even thinking about providing a tool to finally allow a comparison of two strategies.

There is still a lot of work to be done, the first version for testing purposes will be online within this month though, hopefully .

Since its first day online the straddle calculator has attracted dozens of thousands of people willing to learn about the straddle and the strangle strategies. The overwhelming response persuaded me to give this site a whole new purpose. As you may observe - now this is a blog.

The online calculator itself is not really gone. I developed a whole new version of the Straddle/Strangle Calculator (or Simulator) . Now it works directly on your home PC, without the need to go online. Any of the latest Windows versions should do. The new calculator is more flexible, can do more and more fun to experiment with. Break-even points, maximal loss, expected profit, Black-Scholes option pricing and other features are included within this software. You may find the complete description here.

The purpose of this site will still be to deliver software that makes it easier to develop strategies in financial markets – strategies that rely on options (and other warrants) as risk-hedging and profit-maximizing tools. In my posts I will show you how to use these tools to analyze your option strategies.

I already want to announce the development of the Risk Profile Simulator which will give you dynamically insights about your risk/profit at any point of time. You’ll be able to introduce your trades and watch how your risk/profit changes dynamically under different circumstances. In a way it will be the big brother of the straddle/strangle calculator. Keep tuned!

At this point it is my responsibility to warn you about the risks of options trading. Options are a powerful financial instrument that, as fire, may serve you or burn you… financially. I recommend to conduct a deep research before you go anywhere near a trade with options. To protect me against any legal responsibility I strongly recommend NOT TO USE my software for any decisions in your real trades. This software serves educational/academic purposes only!

Now, I will also use this blog to share my experiences and know-how in option trading strategies. I may also share about how to analyze companies. I expect you to be at least somewhat fit in finances. Still, I like to keep things simple, so anyone can understand what we are talking about.

Keep tuned for the next posts!