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 .

This entry was posted on Saturday, May 17th, 2008 at 3:03 pm and is filed under General, Software Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.