FREQUENTLY ASKED QUESTIONS

- Does your Option Calculator handle options on futures or options in other markets (Australia / Singapore / Hongkong / EUREX / Forex / etc.)?
Yes and no. You can enter a position and draw the risk and greeks graphs of pretty much any kind of option position. For options on futures you can specify the multiplier of the option contract. However, at this moment the automatic retrieval of underlying and option data from the Internet only supports U.S. stock and index options. Other markets may be added in future updates.

- Where does the program get data from? Is it free? Do I need a subscription?
Everything is free, no subscriptions or registrations are required. Yahoo! Finance and the CBOE website are the main data sources.

- Can I use the program with ESignal / my data feed?
Only if you have a way to get the data into Excel, like explained for the Interactive Brokers API at the end of Step 3 of the manual.

- Will the program tell me which options I should buy? Does it tell me which options are underpriced / overpriced?
Tools like the Statistical Volatility Analysis will help you with your decisions, but above all the Option Calculator is a risk management and analysis tool. Option trading is complex, and without a tool to visualize and analyze your risks you are flying blind. The truth is - while there is such a thing as an educated guess - that nobody knows for sure if an option is over- or underpriced. Whoever is claiming the opposite trying to sell you tools or newsletters is misleading you.

- What is the difference between quoted price and model price? Where does the model price come from?
The role of the "model price" is the following: When you retrieve prices from Yahoo/CBOE they get entered into the quoted price column. The program then automatically recalculates the options' implied volatility (IV) and models option prices and the greeks. In the end quoted price and model price should be the same.
If you enter the quoted prices manually, please click on the small IV buttons or on "all IVs" to calculate IV and make the model price equal to the quoted price.
The risk and greeks graphs are based on the modeled IVs and greeks on the position sheet.

- Which option pricing model does the Excel Option Calculator use?
The Black-Scholes pricing model with dividends is used.

Back to Top

- You say updates are included, for how long?
I will email you updates which contain new features and support notes for up to one year after purchase. This does not mean that the program will be unusable after a year, it will work just fine. I will try to keep older versions functional beyond the one-year free update period, but I can not guarantee support indefinitely.

- I bought more than a year ago and would like to get the newest version, do I need to purchase the program again at full price, or do you have a special offer for me?
Everybody who has ever bought Version 10 or later can receive the newest version and one more year of free updates for only $15, please write me a quick e-mail and I will send you a payment link (for credit card and PayPal). After successful payment you'll be automatically redirected to a page where you can download the newest version.

- I am just starting out, can you give me a discount?
I am sorry, but I do not give discounts on request.

- Can you give me a discount if I purchase directly from you and not via eBay?
No, I am sorry. I pay the eBay fees as a service for those customers who feel more comfortable doing the transaction within the structure of an eBay (Buy it Now!) auction.

- I don't have PayPal, are there other payment methods?
Please see the payment methods on the buying page.

- Can I mail you a check or money order?
Sorry, the only accepted payment methods are those specified on the buying page.

- Do I need to get in touch with you before buying?
It is not necessary to write me an e-mail before buying. When you buy the Excel Option Calculator and successfully pay by credit card or PayPal, you'll be automatically redirected to a page where you can download the Excel Option Calculator. If you order and choose payment by Western Union or bank transfer, I'll get in touch with you within the guaranteed response time shown on the contact page.

- How do you deliver the program? Can you send me a CD with the Excel Option Calculator?
Delivery is via e-mail or download only.

- How big is the file? My Internet connection is not so fast.
The zipped file is about 900kB. Even on a slow dial-up connection it should not take longer than 2-3 minutes to download the file.

Back to Top

- Do you provide support for your program if I have a problem?
Sure, I am always available for your questions. Please check out the rest of the FAQ and the manual first, but if you don't find an answer to your question, don't hesitate to Contact me. I do not provide personal trading advice.