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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (13792)	7/19/2001 7:32:14 PM
From: Elmo Gregory	Read Replies (1) \| Respond to of 14162

Dan - PMFJI, The Option Calculator (version 3.0) that came with The Options Tool Box (version 3.0 01/01/99), that I downloaded a couple of years ago, allows for a wide range of input and output values. Stock Price: Acceptable range of values is 0 - 999.9999. Strike Price: Acceptable range of values is 0 - 999.9999. Volatility: Acceptable range of values is 0 - 999.9. Interest Rate: Acceptable range of values is 0 - 99.99. Days To Expiration: Acceptable range of values is 0 - 9999. The Option Calculator does not have graphing capability but does output values for the following parameters: Theoretical Price Delta Gamma Theta Vega Rho Regarding calculating Implied Volatility: (from the Help file) ---cut--- To use this calculator to derive an option’s implied volatility, first type a value in each of the input boxes on the left side of the calculator’s interface (price of stock/index, strike price, etc.) and calculate the option’s theoretical values. Click on the “Implied Volatility” button and a small window appears. Select either “Call” or “Put,” depending on which type of option you are valuing. Type in the actual market price for that option where prompted. Important: make sure you have included the price level of the underlying stock or index current to the option’s market price. For example, if the market price for the option you are valuing is 3 1/2, include the price of the underlying stock or index when that option is trading 3 1/2. Next, click on the “Calculate” button. You will see an implied volatility calculated and displayed in the appropriate space. When you close the “Implied Volatility” window you will notice the market price of the option you are valuing replacing its theoretical price. All other values in the theoretical output area (including the value for the other type of option - call or put) have been recalculated for the implied volatility you have just derived. ---cut--- Might check the programs that came with The Options Toolbox to see if The Option Calculator program is included. Regards, Elmo