The (spot) price analyzer is the start, or main, screen presented when Level 2 begins and provides access paths to all other Level 2 modules. Buttons give access to modules. Menus offer access to visual preference settings, runtime settings, status reporting, interactive high resolution and handicap synthesizing charts and elective status reporting to Level 2 support.

As you move the mouse pointer across Level 2 controls, a tool tip will appear with a description of the controls service. Views of saved items from the portfolio or CBOE Parser, or Forward Spot Models may be viewed in Excel format by clicking the “Excel” tool bar button.

The setup and maintenance screen service conversion limit filters, skew and kurtosis (fattail) rates, Level 2 data store maintenance, activation key entry and current CBOE HV designation.

The CBOE Parser / Viewer reads and prices near market tick CBOE option chains that are available free of charge. From that chain, straddles may be sent to the forward spot price modeler, legs can be sent to the portfolio and mark to market reporting for options contained in Level 2 Portfolio.

Calculating IV can consume a lot of clock. Since the Pricing Model computes all the IVs for the various models, it is not necessary, unless IV bets are your game, to calculate the IV for each leg of every straddle in the chain. However, you can delete strikes or expirations you are not interested in and run the IV calculations for the short list. Pressing the Stop button during the calculation cycle will allow you to reset or optimize the viewers presentation.

The price at quote feature allows you to select which stock quote to use to price the option and the corresponding option ticker quote to price the option IV. For example, setting for LAST would use the sock LAST quote and the option leg LAST quote.

Level 2 Forward Price Modeler shortcuts allow for quick menu driven snap changes to model parameters as an alternative to the Model Control Console. For detailed, up close and personal work, the model control console is the only way to go.

Level 2 Portfolio allows stock and option legs to be keyed in or can receive legs forwarded from the CBOE Viewer. To clear for a new entry, undo a change to a portfolio item, save or delete use the appropriate tool bar buttons.

Options Level 2 charts are spatial time, market and price charts. While the Level 2 Implied Price Model assesses the closing value of the option, the chart provide an understanding of the exercise value. Pressing the [Ctrl] key with the left mouse down will rotate charts to your visual preference. Clicking data points on chart surface updates the chart legend (above image).

Above is a snag demonstrating Level 2 back test features. The upper section is Level 2 price model. The yellow highlights are the modeled prices for the call and put, which, in this case, turn out to be what the market is actually trading the options at the 19 day out modeled to market date (blue highlight) at the actual and modeled stock price (purple highlight). The market prices are cutouts from Options Level 2 CBOE Chain Parser and Viewer.