Options Level 1 is an Enhanced Forward Liquidity Options Pricing, Black-Scholes Options Calculator and Options Portfolio Solution offering a unique insight into the future market prospects an option offers in terms of when and where and how much the money potential is. Options Level 1 should not be confused with typical fair value calculators. Options Level 1 forecasts market return on investment for the closing sell and the exercise, simultaneously, for both legs of the option.
Feature Bullets
Downloads and prices free CBOE option chains presenting stock to strike and fair value to bid ratios.
Interactive, 3D forward pricing matrixes that simultaneously price the future return on investment for both sell to close and buy to open market positions as well as the exercise position.
Forward sell to close market ROI assessments allow a pegging price to be specified for sell to close, or buy to open contingency orders. This feature can eliminate or reduce requirements for full time online market feeds and brokerage services.
35 x 4800 discrete low resolution future measurements with dynamic handicapping for per option. 35 x 28569 discrete high resolution future measurements for each option. Measurements include pricing, behavioral, sensitivity and delta Greeks
Fully integrated portfolio module with markup reporting.
Clean, crisp click and pick interface offering 75 3-D interactive value at stock at time through expiration pricing and delta charts.
Values and forecasts stock options, indexed options, futures and currencies.
Offers utility to both professional and retail traders.
Allow an Einstein thought experiment where Thomas Aquinas applies a philosophical approach to option investment as a redemption strategy.Q: What is an option?
A: An option is a risk, or side bet, on the future market for the underlying stock.
Q: Why do we invest in options?
A: We invest in options because they offer a defined risk and high return potential.
Q: How does an option demonstrate the return?
A: An option demonstrates return through the exercise and close.
Q: How do we measure an option’s return?
A: In dollar market value.
Q: What is the dollar market value of the exercise and close at any assumed stock price at any assumed date?
A: err … it’s not on this screen … is it a skewed theta factored covered spread ..?
It’s always the last question, the important question, that eludes an answer. Why would that answer be helpful? Because we invest in options for the dollar market value we expect them to return. Allow the analogy of an option trade to a poker game. It’s not an accurate analogy because the options market deals all the cards face up. The market does not bluff. When we fold in a poker game we loose the chips we threw in the pot. When we fold in the options market, we may be able to redeem more chips than we threw in, or at the very least, get some of our chips back.
Redemption Strategy
How would the answer to Mr. Aquinas last question enlighten our ROI? Simple. Should we know the dollar potential of the option's future exercise and closing, before we invest, continuing with our poker analogy, we would choose when we would call (poker call, not a call option) based on the number of chips we would redeem when the option is closed. In effect, we could write a stop limit order specifying the stock price to trigger the option's close, with a reliable understanding of the redemption, without chasing the tick (whose got the time?). For lack of a better term, this is a redemption strategy.
We have shopped Options Level 1's competition. They are worthy opponents. However, we could not find one that offered a simple answer to Mr. Aquinas last question. They do offer Greeks and Charts. Options Level 1 offers more Greeks and more charts (78 charts to be precise). Options Level 1’s competitors’ charts are flat and restricted to the moment. Our competitors seem to target traders that schooled at MIT. Options Level 1’s charts are spatial (time price and value axis). Options Level 1’s charts are interactive. Options Level 1’s charts “breathe” (ever see a strike vega wave roll or a volatility gamma wave curl?).A redemption strategey also allows us to pick when we fold. We would fold based how many chips, the expected market return, our fold would save. We might even get to keep more chips than we threw in! At the very least, we should be able to get some of our bet back. To fold our option, we would write a stop loss order specifying the price of the underlying to trigger the closing execution.
At some date, we will need to leave the game. Longer term maturities will give the market more time to deliver our assumptions. We should always cash out while comfortably out from expiration should the market for the underlying refuse to cross our limit and loss barriers. Options Level 1's Pricing surfaces are very helpful in this regard because they reveal the fair value trend line. Fair value can trend up, be static or trend down. Options level 1 makes the fair value trend obvious. Never forget: Expiration is a hard deadline. Redeem what you can while you can before you lose everything!
The probability of an option's future value has less to do with any metric the option presents and more to do with the future market for it’s underlying stock. The are three outcomes : The call to redeem the pot, the fold for minimum redemption, and the redemption for dealing out when the night is late. The market does not guess. The market does not bluff. The market simply is. The market cannot be predicted. It is not an infinite time space continuum. It will cross a barrier eventually. We simply pick the barriers, limit order and stop loss, based on the number of chips we decide to redeem when they are crossed.It’s not about charts and Greeks. It’s about, and only about, the market value dollars redeemed when the close is executed. It's about redemption. Options Level 1 answers Mr. Aquinas last question, in market return. The other guys don’t come close.
Options Level 1 renders a hedge adjusted market value for the close and exercise, for both legs of the straddle at any price and any time through expiration, with an interactive intuitive spatial 3 axis pricing waveform. We invite you to compare Options Level 1 to it’s worthy opponents. Should our opponents answer Mr. Aquinas last question, please contact us, and show us where.
These are the questions we invite you to ask:
How does Options Level 1 Markup the Options Portfolio to current market?
Options Level 1 assesses the liquidity of an option faster, easier and better than any tool anywhere at any price!
Options Level 1 keeps it simple. Should the market be reluctant to deliver the assumptions, there is always an opportunity to fold without losing premium.
Regardless of expertise, or experience, Options Level 1 simplifies your understanding of an options future liquidity potential, using your market assumptions and free option chain data courtesy of the fine folks at the CBOE.
These are the kinds of questions Options Level 1 helps traders answer:
What is the money probability? What is the liquidation value of the option today, next week or next month? Exercise, sell or cover? What are the risks, rewards in a changing market? What would be an optimal redemption strategy?
Years of effort and appreciation for the craft built Options Level 1. Options Level 1 is of the highest quality and precision, seamlessly packaged in an intuitive, easy to use and powerful interface. Options Level 1 manages and handicaps portfolio positions through flight proven numerical and graphical analysis.
Option Level 1 plots 3 dimensional Black Scholes and Delta Greek waveform charts with axial rotation for easy viewing and interaction. All charts are interactive. Traders interact through a mouse click, or numeric input, available with any of the 75 interactive waveforms (a matrix of price to time to value data points) to retrieve information specific to a discrete price / time coordinate. Options Level 1, as mentioned, features a graphical handicapping synthesizer prsenting dynamic waveforms for any of Options Level 1’s Black Scholes and Delta Greek metrics. Charts associated will call or put specific information allow for entry of test option prices and report, based on trader interactions, probable liquidation and exercise dollar relative to the the data point or interactions with the slide controls.
A consultant advised offering a high quality interface. at the price we were proposing, might imply our tool was not at a par with similarly offered products selling upwards of 500 to 1000 dollars. Our response was that we did not feel we needed to pretend we were offering a high end tool. We know we were offering a high end tool. We've shopped the competition. Their models are old school and flat!
Software is not like a car or an appliance, where each copy requires manufacturing. So why charge a markup as though it were, when the goal is to get the message out?
We are only interested in developing a dedicated, mutually beneficial relationship with prospective users who know the difference between price and value. We know traders appreciate Options Level 1's interactive features because 7000 of them are using a branded release of our analyzer. Our success depends, absolutely, on yours.
There are just too many features to burn your time on our web page, so we invite you to download the Options Level 1 User Guide (Word DOC).
When you’re ready, come back and buy Options Level 1. We are offering it at the fantastically low price of 49.95$. Don't wait. This price represents substantial discount to the catalog price. We are developing Options Level II with real time streaming pricing. When Level 2 is put on the shelves, only Level 1 licensed users will receive a 50% discount towards the purchase of Options Level II. You could pay a lot more for a lot less someplace else. Don't short yourself. Buy Options Level 1, while you can, at this onetime only price!
Options Level 1 is a user driven idea. Our marketing philosiphy is that Option Level 1 users and our development staff are a team. We plan to release enahancements, free of charge, semiannually, based on user feedback and our appeciation for the craft.
Become a member of our team and the Options Level 1 community. If you have any questions, please, give us an opportunity to answer.