The options tool of choice among traders and investors around the world.
Option Wizard Online provides one-click, complete options analysis.
Q. I want a product: I download it, I load it, and it works automatically
without me having to tweak much, or know much. Even on volatilities,
sometimes I have no idea, etc. It needs to know how to assume
reasonable numbers when i do not know. Just fyi. Thanks.
A. Option Wizard Online 2000 works automatically -- complete options analysis with one click!
Q. The Option Wizard Trading Method states Option Wizard is biased toward sell compared to 'buy'.
Does this mean that it is less accurate when being used for buying
options compared to selling options?
A. No. The results in the spreadsheet are not biased. According to the Options Clearing Corporation, about 66% of options expire at zero or are offset at a loss. As an options buyer, you are fighting decay; as a seller, it is working for you.
Fund managers, quants, and analysts often choose Microsoft Excel as one of their favorite tools since it is customizable, and as the leader in spreadsheets, a universal platform.
Q. First things first, what do I need to run Option Wizard?
You must have Microsoft Excel, the leading spreadsheet program.
Q. I am not fluent in Excel, can I use Option Wizard?
A. Yes! Our customers tell us Option Wizard is the easiest to use of the options products.
Q. I do not have Excel, how do I get it, how much is it?
A. Right here, and at the best price! Excel 2000; or consider Microsoft Office, with Word, Excel, PowerPoint and Outlook, or Pro (adds Access).
Upgrade your Excel for less than $99!
Unzip, open Excel, open the file.
Q. I have never used my Microsoft Office 97 or Excel, how do I install and demo the Option Wizard program?
Q. A few minutes ago I purchased Option Wizard via the web page. However, I now am wondering how I am to receive the file?
A. We send download instructions on your browser screen and by email.
Q. Will this Excel application work with the Excel Spreadsheet
(i.e. Pocket Excel) used on the Microsoft Windows CE operating
system used on various palmtops? Certain functions (e.g. NORMSDIST
(z)) are currently not available in Pocket Excel.
A. We do, in fact, use NORMSDIST in Option Wizard, so no, sorry.
Q. How can Option Wizard and Option Wizard Online be tested?
A. 1. Download the demo. Please note where you save the file, e.g. desktop or C drive.
3. Open Excel
4. Open the file.
You will see all the Option Wizard worksheets, (plus Backtest Wizard as well).
Q. I downloaded but I am stuck. Help!
A. Sorry to learn of your download problems. Let's go down the elimination tree; may we suggest:
1. Please see if you can download:
If you can not find, use Find File utility. Search for "test".
What is this .bin, you ask? The .bin suffix means binary, i.e. generic computer file. Some computers automatically tag incoming files as certain file types, e.g. .pdf, .txt, etc. We do not want your computer to decide in advance what this file is, and alter it, hence .bin. Now that it has arrived, you may delete .bin suffix. Open Excel. Open the file.
2. Next, the compression question, i.e. .zip. Please download: http://option-wizard.com/test/test.zip
Unzip. (Need unzip software?: PC, PC, Mac)
No "install", this is not a program.
It is a .xls file for Microsoft Excel.
Trouble finding? Use Find File utility. Search for file name in email. In Excel, look under "all files."
Still having problems?
3. If you are on a Mac, please set Excel to 20+ mb memory, just to make certain you have enough memory.
Still having problems?
4. Please make certain you have a full and uncorrupted installation of Excel. Consult Microsoft tech support for advice as needed.
425.635.7070 Microsoft Excel tech support:
Still having problems?
5. Alternately, in case corruption ensued during transfer, redownload
the Option Wizard file from your email, unzip, open Excel, open
Instant delivery -- no waiting.
Q. How can Option Wizard or Option Wizard Online be purchased?
A. Please visit our online store. Select your product, fill out the form. We verify your card, instantly screen-print and email your download information. Open Excel, open the file.
Q. Tried to order but your order page does not function.
A. From time to time, server, code or other problems may interrupt our online sales capability. If this is the case, email us (hit link above), we will jump on the fix. You may always call us during market hours at 847.446.2222 for instant sales. Non-market hours, leave voice mail and we will call back asap.
A. Sorry, with the demo and $59.95 two-expiration trial, there can be no refunds.
Our 4 step, simplified How To is onboard as worksheet number one.
Q. Downloaded your Option Wizard QuickGuide, but cant find. Where is it?
A. Open your temp file or use Find File. Search OWOQG. Open. Save.
Q. Tutorials, instructions, manuals?
A. There are 3: your tutorial is online. So, too, our QuickGuide manual. Option Wizard Trading Method , our publication, available electronically as a Microsoft Word document. or .pdf, or web page. Finally, our telephone tutorial, for those new to markets, computers or Excel, 1:1 with development staff, $150 per hour.
Q. I bought Option Wizard Trading Method, opened in Word, but cannot see the graphics.
A. Please try the Adobe pdf version.
Tech and Pre-Sales Support
We are here to help you by email or phone.
Q. Tech support?
A. Of course. Most answers are right here, but if not, call 847.446.2222 during the market or email firstname.lastname@example.org. Need heavy duty help? Our telephone tutorial is for you. Extensive telephone support for computer or Excel beginners (how to download, open a file in Excel, maximize, change worksheets, etc.) : $150 per hour via our online store. Your Excel questions are best answered by Microsoft (PC 425.635.7070; Mac 425.635.7080 6 a.m. to 6 p.m. Pacific time).
One click analysis.
For Option Wizard Online, just enter ticker symbol (s) and interest rate, update volatilities with one button click once per week. Fast and powerful.
For Option Wizard (offline), basically, you will input:
You will get back
fair value option price, puts and calls
110 price-time variants
percent to double
call and put delta
other Greeks: gamma, vega, rho
strike series table
spread series table
Option Wizard calculates your implied volatility with one button click.
Q. Does Option Wizard calculate futures options?
A. Yes. Black Model calculus. Or, simply set interest rate to zero. This will handle most futures options, the exception being deep-in-the-money options, which will appear to be somewhat underpriced. See McMillan on Options, p. 510.
Q. The strike price and expiration month are easy but where can
I find current T-Bond rate.
A. T-bond rate, you can check via CNBC or Wall Street Journal or Barron's, as you wish. For offline clients, historical volatilities are calculated for you at Optionstrategist and Hoovers (pathway: ticker: stock quote).
Q. Option Wizard asks for dividend information. I don't understand
how dividends factors in as option traders do not participate
in gains from dividends paid to shareholders.
A. Exactly, which is why we must include it. It makes for a lower stock price over time because you, the options trader, will not receive the dividend but you will have a lower stock price down the line. When a stock goes ex-dividend it is automatically marked down by the amount of the dividend that day. This dividend adjustment is usually a very small amount, but it is part of the formula, nonetheless. Option Wizard Online accesses dividend information from PC Quote automatically.
Q. Is there some place out there in cyberspace that has option
A. Delayed options prices are at the CBOE .There are no free options historicals that we know. Commercial source: DialData, 56 Pine St., N.Y. 10005, 212.422.1600, fax 212.612.2276.
Q. I use eSignal . Could their quote service work with your program?
A. We have Option Wizard DDE versions for eSignal, myTrack, quote.com and PC Quote 6.0.
Q. What cells do you immediately look at to determine if Option
Wizard is telling me "Go for it", "Hold off", or "Forget it!"
A. The base of the pyramid is fundamental analysis, the middle is technical analysis, and the top, options analysis. We look at all outputs, but in the light of fundamentals and technicals. We look at volatilities, probabilities, delta and decay -- all in Option Wizard. When implied volatility is 2 to 3 times historical, look for a regression to the mean. From the long side, we also like a delta of 60 and up, favorable probabilities, and in-line volatilties. For a full exposition of our approach, see Option Wizard Trading Method.
Q. In the options worksheets, optionsall or optionsnear, the ticker
symbol does not match the options prices below.
A. Select ticker symbol cell, Data:Refresh Data.
Volatility: historical and implied
Q. Can you give me your definition of volatility and how you are
Q. I dont want theoretical fair value, I want to know the implied volatility in the option price.
A. Volatilities. Many options programs -- and some options web sites -- generate or access a single volatility number for a stock. Some (notable) web sites provide errant volatility numbers! Option Wizard Online accesses 20-50-100 day volatility measures, plus a recent implied volatility number, then compares to current implied volatility with the click of a button. Option Wizard also features a customizable four-average smoothing table and chart based on 200 days of stock data. Benefit: chart shows convergence of averages, i.e. low volatility, which often signals breakout potential in a stock.
Volatility: how much your stock moves up and down. Historical volatility measures past price movement; implied volatility projects future price movement. Volatility is also the % a stock may be up or down 1 year from now based on past price movement (HV) or based on present option price (IV).
To figure Implied Volatility: Find your option price Optionsnear or Optionsall worksheets. Enter in C34. Hit button, Calculate Implied Volatility. Option Wizard iterates (uses trial and error) to change I21 -- fair value cell -- to your market price by changing the Implied Volatility.
Compare with historical volatilities referenced on Option Wizard Analytics page for over-, under-priced comparision, current market to historical.
Q. In Option Wizard Analytics, the options prices are way out
of whack with the market.
A. To find theoretical fair value, select Implied Volatility cell (C28). Type = C29. Hit enter. Or run macro button ResetIV. You have set the model to the current IV reading from webhist.txt.
Q. The option price is still off.
A. Check your other variables: stock price, strike price, expiration date, dividends, time remaining -- and implied volatility.
Q. How can I do "what if" analysis? What if the volatility changes,
or strike price, etc.
A. Use column B -- numbers are in red.
Features, definitions: percent to double, Greeks
Option Wizard Online unique features include: copyrighted decay table with 110 price-time variants, volatility range, price- and percent-to-double, probabilities range, customizability, Backtest Wizard, Option Wizard Trading Method (publication). More than 20 worksheets and charts.
Q. Where do I find percent to double?
A. Green table. Hit button, Option Wizard calculates.
Q. Although I've traded options in the past (and was a commodities
broker in the late 1970's), I am totally lost as to the meaning
of the Option Wizard tables and results. I don't understand what
the numbers mean and the percent to double is particularly confusing.
I was under the impression that percent-to-double (%ToDbl) is
an indicator based on the current price of the option and underlying
stock, i.e., what % must the stock increase or decrease to double
my money based on a particular strike price?
A. Correct, Option Wizard calculates, shown in green table.
Q. But, the %ToDbl line appears to track market price of the stock,
not the strike price. I'm sure there's something I'm not seeing
(or maybe, I'm pretty dumb).
A. There is no such thing as a "dumb" Option Wizard client! That is an oxymoron. The answer: Strike always stays the same in our percent-to-double table, it is showing you how much your option changes versus in tandem with how much your stock or index changes. Say you have a $20 stock. You stock moves up $1, your table shows your stock increased 5% and your option x%. When your option moves up 100%, whatever your stock moved to get it there -- that is your percent-to-double. On low-priced stocks, it can often be as little as a 6% stock move to get the option to double.
Q. I've done the reading and I keep coming across delta, gamma,
theta, vega. What gives? Do I have to join a fraternity or sorority
to trade options?
A. Delta, the hedge ratio, is the change in premium over change in the underlying. If a stock moves $1, the call or put $.50, the delta is .50. For most of us, this is the most important Greek term to be familiar with because it identifies how many options you must sell to hedge an underlying position. (In the example above, 2 calls for every 100 shares of stock.) Option Wizard identifies the delta for you, as well as other Greeks.
Gamma, the change in delta over change in the underlying. If a stock moves $1, the delta $.05, the gamma is .05.
Theta, is the rate of option decay, day to day, all other things being equal. Accelerates near expiration. Option Wizard shows this in clear table format.
Vega, how much option price changes per 1% change in volatility. If volatility changes by 1%, option changes by .20, vega is .20. Easy to toggle vega in Option Wizard for what-if analyses.
Rho, the rate of change of the value of an option with respect to the risk-free interest rate. Same easy toggle.
Q. Is this system connected with Market Wizard?
A. Not connected with Jack Schwager or his fine text.
Option Wizard Online Delay is $399, real time $599. Compare to others at $1,600, $2,400 and up. Delay data is free.
Q. If I pay $399.00 or more, will I have the service for 1 month,
1 week, 1 day, 1 decade, or for my lifetime? I haven't been able
to discover this info from your WebPage. (Perhaps only because
of my feeble brain). I think you have a very good service, but
the way you request MONEY is vague and leads people (at least
me) to think: "here's another rip-off place that mainly wants
my credit card info."
A. First there is no such thing as an Option Wizard client with a feeble brain. When you learn how to run Option Wizard, you are automatically in the elite of options traders, and you will be explaining things like implied vs. historical volatility to your broker who may not have a clue.
Second: Option Wizard is a one-time license purchase, there are no monthly subscription fees, as some have inquired. We do have upgrades from time to time, which are additional, typically $59.95.
Third: regarding credit card info. you may be interested to know we never see your credit card information at all; our secure processing company handles it for Option Wizard, as well as hundreds of other Internet-based companies around the globe.
Fourth, if you shop and compare, you will agree that Option Wizard offers the clearest, easiest-to-use interface at the lowest price.
For more study
Options is a huge subject; Option Wizard Online simplifies it for you.
Q. All good stuff, but I still need to to my homework, I need
to do some more reading? and study first. Ideas?
A. For a comprehensive list of the best books at discount prices, please visit our Online Bookstore. We are an Amazon Books accredited associate, the fastest, easiest and lowest cost way to serve your educational needs.
Your question not here? Email it!. Your associates at Option Wizard wish you continued success in trading and investing.