


Options/X 11.0

Financial Options ActiveX Control and COM Object 
Options/X Stock Options Pricing and Analysis Software
Options/X is designed to make life easier for quantitative analysts, option traders
and others needing fast option pricing in Excel or their own custom developed
application.
Options/X gives you the power to easily create your own trading system,
option price calculator, implied volatility estimator and
more.
Create options scanning applications using Options/X and
Volatility/X. This options scanner was created using Options/X and
Visual Basic .NET (Note that this application is not included with
Options/X, it is just used to show what can be done).
With our easy to use, yet powerful software, including
demo applications with source code, backed up by our top notch support,
you will be able to build applications to price stock options, commodities
and currencies
in minutes, not days.
To
make it easier for you to build such an application we provide a demo in
Visual Basic 6 which includes fulll source code.
Contact us today if you would like to discuss how this new functionality
can be used in your application.
Options/X 11.0 builds on the features introduced in the previous version
which introduced more than 60 powerful new methods including the
following completely new functions:

New Discrete Dividend Methods for BlackScholes and BjerksundStensland models

New Probabilistic Methods to compute values such as:
Upside stock potential,
Downside stock potential
Probability of security price being above, below, touching or between values.

Fast analytic methods to compute probability of stock ever touching a price level,
Monte Carlo methods

RiskReward methods to compute potential risk and reward for option trades.

Combined calculation methods of prices and greeks for BlackScholes and BjerksundStensland
models for even faster results

Updated Excel AddIn. To calculate the potential upside movement of a security in Excel based on a given
volatiity and holding time, you would simply enter:
=UpsideStockPotential (InitialPrice, Prob, Time, Volatility, DividendRate)
where the variables are replaced by the appropriate cell references.
Options/X is very fast, yet easy to use. In only one line
of code, you can add derivative pricing to your application. a software
package that enables you to price stock options, commodities and
currencies.
It is a full Excel AddIn but also includes an extensive API and DLL for
creating your own stock option pricing applications, options calculators
and option trading applications in Visual Basic 6, VBA, Visual C++ 6, C#
and more.
With Options/X, you can compute greeks, implied and historical
volatility to value put and call derivatives for American and European
options using the BlackScholes formula, Binomial CoxRossRubenstein
model and others.
With Options/X, you can
create your own exchange traded stock option price calculator
to compute stock option prices for European and American
Options, analyze options volatility smile or compute historical volatility. Are you interested in making money using stock options? Have you tried
stock trading, but now need to work out how to trade options successfully?
One of the most essential tools for options trading is software for
options pricing.


The beauty of Options/X is that you are in control of
exactly what is computed and what algorithm is used. You are free to
create your own options pricing calculator using the builtin functions of
Options/X.
Create an application in Visual Basic 6 and then upgrade to Visual
Basic .NET with ease. Alternatively, you can build your entire
application in a .NET language using our 100% managed components written
in Visual C#.
If you are a fan of Excel, then use our components directly in Excel
for most functions. For advanced users, you can access the full
functionality of Options/X using VBA.

Enter a function in Excel using the Insert function menu.

We provide the source code
in Excel Visual Basic, Visual C++ and other languages so that you can use the builtin
options pricing models to easily create your own option pricing calculator.
Use our example program or develop
your own Windows applications for option trading easily in: Visual Basic 6,
Visual Basic .NET, Visual C++, Borland C++
Builder, Excel.
Please
refer to our client testimonials to see what others say. In many cases our
options trading
software will enable you to be up and running within minutes of downloading
the software. 
With full source samples you will be able to quickly and easily implement
Options Trading software. Download Options/X now and you can try it out
in full, even compile programs using the trial version. Using
implied volatility analysis, compute the volatility
smile.
If you are interested in stock options trading, futures trading, implementing
and testing your own option trading strategies, or even just want to learn options trading, then you will
need solid, reliable options pricing software.
While many options software products
are difficult to learn or require extensive training or courses, Options/X is
very powerful yet easy to use. If you need help getting started or require additional features
please contact us as we provide extensive support with all of our software.

Related Options Software
Options/NET  Options Analysis .NET Component
Volatility/X  Volatility Estimation Excel AddIn
Options/NET Mobile  Options Analysis Windows Mobile Component
Features of Options/X
Find the "greeks"  Delta, Gamma, Theta,
Vega, Rho. Dividend earnings as a percentage yield can also be included. European and American options
can be analyzed using the BlackScholes
option pricing formula, Binomial options pricing methods (CoxRossRubinstein),
Black method for futures or any of the other methods listed below.
Options/X includes a number of popular models for estimating the theoretical option
prices and contains the following models:

BlackScholesMerton (allows for dividend yields)

Black76 (Futures)

CoxRossRubinstein
(Binomial)

BjerksundStensland (fast estimation of American
options)

BaroneAdesiWhaley

GarmanKohlhagen (used to price European currency
options)

RollGeskeWhaley

French84 (allows for the effect of trading days)

Merton jump
diffusion

Historical volatility (estimate volatility using
raw price data)
These option pricing algorithms provide a method of
determining the call and put prices for European and American options, greeks, implied volatility
and volatility skew for both call and put options is also available. While we may not be able to turn you into an options trader, we do provide
the software that is used by options traders and brokers to value and analyze stock options.
Options/X comes in 2 different editions:
Enterprise and
Platinum. The difference between each of these
methods is given in the table below:
Pricing Models 


BlackScholes 


Binomial 


BjerksundStensland 


BaroneAdesiWhaley 


GarmanKohlhagen 


RollGeskeWhaley 


French84 


Merton jump diffusion 


Functions 


Call/Put Prices 


Greeks 


Implied Volatility 


Implied Volatility Skew 


Probability Calculations 


RiskReward Calculations 


Historical Volatility 


Continuous Dividends 


Discrete Dividends 


Server Use 


Sample Applications 


VB 6 


VB.NET 


Excel 


Access 


VC++ 6 Console Mode 


Options/X Excel
AddIn
The latest release of Options/X now includes a full Excel AddIn. This AddIn
is installed automatically and now means that users can access Options/X
functionality just like any other Excel AddIn function within a cell. It even
includes context sensitive help to make your job even easier.
To use Options/X functions in Excel, simply
click on Tools and then Insert Function. Select the "Financial"
category and then you will be able to immediately access the
desired functions within Excel:
Full Excel interface enables easy access to functions.
Try the demo Excel worksheet to see how easy it is to use the new
Options/X Excel AddIn.
Options Source Code Examples
If you are aiming to develop an option trading system for the stock market, try Options/X, an ActiveX/COM
DLL that enables you to quickly build your own system.
The advantage of Options/X is that you can use it as an Excel Addin. With the
addition of stock quotes, you can create your own option trading software,
customized to your own purposes. Options/X includes sample
applications with source code in
Visual Basic 6, Visual Basic .Net and Excel. You can quickly see just
how easy it is to price and analyse data using Options/X.
Options/X ActiveX Control implements option pricing and analysis functions.
For each of the pricing models, the implied
volatility and volatility skew for both call and put options can be determined.

Screen shot of an
application built in Visual Basic using Options/X. 
Options/X is both an ActiveX Control
and a COM object implemented in a single DLL file, so it can be used in a wide range of applications that support
these standards. This includes Visual Basic, Visual C++, Excel,
Delphi and Borland C++ Builder. The control is written as a lightweight ATL
C/C++ object, and does not require bulky MFC DLLs. Because the control is
written in ATL it is efficient and small in size. The numerical processing is
written in C for speed, and integrated into the lightweight ATL/C++
framework. The trial version of Options/X is feature limited: you will only be
able to access BlackScholes functions using the trial version. However it is
possible to develop trial applications to test out your ideas. If you need to
price American Options using the Binomial model (CoxRossRubenstein), or do
futures pricing, then by purchasing the full version you can obtain the full
capability.
BlackScholes Option Pricing
The
BlackScholes option pricing formula can be used to compute the prices of Put
and Call options, based on the current stock price, the exercise price of the
stock at some future date, the riskfree interest rate, and the standard deviation of the log
of the stock price returns (the volatility).
If you have access to financial endofday stock data, then you can use our software
in Excel to easily price financial options to work out their theoretical fair value.
A number of
assumptions are made when using the BlackScholes formula. These include: the stock
price has a lognormal distribution, there are no taxes,
transaction costs, short sales are permitted and trading is continuous and
frictionless, there is no arbitrage, the stock price dynamics are given by a geometric Brownian motion
and the interest rate is riskfree for all amounts borrowed or lent. It is possible to
take dividend rates for the security into consideration.
Further information on the BlackScholes model for pricing derivatives and how
to use Options/X to price stock, currencies and commodity Put and Call derivatives
using European and American style options is given here:
Binomial Option Pricing
American
options differ from European options by the fact that they can be exercised
prior to the expiry date. This means that the BlackScholes option pricing
formula is not suitable for this type of option. Instead, the
CoxRossRubinstein Binomial pricing algorithm is preferred. OptionsX implements
the binomial pricing algorithm for pricing American options. used to compute the prices of Put and Call options, based on
the current stock price, the exercise price of the stock at some future date,
the riskfree interest rate, the standard deviation of the log of the stock price returns (the
volatility), and if applicable, the dividend rate.
Implied Volatility
Given the
option price, it is possible to find the volatility implied by that price. This is
known as the Implied Volatility and it has a number of characteristics which have
been used to identify trading opportunities. OptionsX implements implied volatility functionality for both American and European
options using the Binomial and BlackScholes methods respectively.
Volatility Skew
Implied volatility can be computed for both puts and calls across
a range of different strike prices. Interestingly, it is common for the implied volatility to vary
across this range. Plotting the implied volatility against the strike price results
in a curve that is termed the 'volatility smile'. This is due to the fact that it is common for
out of the money calls and puts to have higher implied volatilities. When there is a
difference between the implied volatilities using equal out of the money calls and puts, this is termed the 'volatility skew'.
Interpretation of the skew is the basis for some trading activities. If the ratio of Call volatility
to Put volatility is considered, a value greater than one may imply that the calls are priced higher
than puts with a resulting upward price bias and vice versa, ie. a call to put volatility ratio
less than one may imply that calls are priced lower
than puts with a resulting downward price bias. High skew ratios may indicate demand increasing for
puts, ie there are relatively more puts being bought and calls being sold, than puts being sold and calls being bought.
The analysis and interpretation of volatility skew should be undertaken with due care and diligence
and is a matter for skilled, professional traders.
References

F. Black and M.
Scholes, The Pricing of Options and Corporate Liabilities, Political Economy, Vol 81,
MayJune, pp. 637654.

J.C. Hull, "Options, Futures, and other Derivative Securities", Second Edition, PrenticeHall: Englewood Cliffs, 1993.

Lawrence G. McMillan, "Options as a Strategic
Investment", New York Institute of Finance, 4th Ed, 2002.
Disclaimer and Risk Statement
Futures and options trading involve substantial risk. The
valuation of futures and options may fluctuate, and as a result, clients may
lose more than their original investment. In no event should the content
presented on this web site, associated links, files and software, help
documentation and related information provided by us, the results obtained from
using software provided by us, or the content of the source code sample
applications be construed as an express or an implied guarantee by Windale
Technologies that you will profit or that losses can or will be limited in any
manner whatsoever. Past results are no indication of future performance.
Information provided is intended solely for informative purposes and is obtained
from sources believed to be reliable. Information is in no way guaranteed. No
guarantee of any kind is implied or possible where projections of future
conditions are attempted. This software is for sophisticated users in terms of
both trading options and in programming. Users are required to be familiar with
the limitations of the algorithms used.
It is therefore up to the developer and/or enduser to determine how, when and
the appropriateness of a model and the results obtained using a model. In
particular, developers are required to assume this risk when using the software
and should similarly pass on the assumed risk and information about such risks
to the enduser so that they can make their own best judgements. Windale
Technologies specifically recommends that the software is not used in any form
of automatic trading or decision making applications, bur rather, it should only
be used in an application that requires the user to make any trading decisions.
Windale Technologies is neither an investment advisory service nor an investment
advisor. All information provided by any means does not take into account your
personal situation and is therefore not personalized in any way and should not
be construed as investment advice. Investors should always check with their
financial advisor to determine the suitability of any trading or investment
decision.

