What is the Options
Disclosure Document?
Known as The Characteristics and Risks of Standardized Options, this booklet
has been written to meet the requirements of an SEC rule that requires the
U.S. options markets to prepare, and brokerage firms to distribute, a booklet
that briefly and generally describes the characteristics of options and the
risks to investors of maintaining positions in options. Prior to buying or
selling an option, investors must read a copy of this disclosure document. It
explains the characteristics and risks of exchange traded options. You may
view an online copy
of this document in
pdf format, or order a free brochure by contacting an Options Industry
Services representative at 1-888-OPTIONS (678-4667), Monday - Friday, 7:30
a.m. - 5:00 p.m. CST.
One other source of free closing bid-ask prices for options can be found on
the
http://www.onechicago.com site if you register for their Analytics.
Typically, files of data may be purchased from a data vendor. As of August
2004, QAI Software offers historical option prices and implied volatilities
going back to 1978. This data is sortable using a number of different
variables and inputs. QAI Software can also run a completely customized search
to back test any trading program you give them. For more information please
contact QAI Software:
http://www.qaisoftware.com.
Where can I find option delta values on the internet?
Delta is one of the options greeks that is derived from an option pricing
module. Delta, normally expressed as a percentage, seeks to measure the rate
of change in an options' theoretical value for a one-unit (i.e. $1) change in
the price of the underlying security or index. There are a couple of ways to
obtain the "delta" of an option.
1) At http://www.888options.com, you can click on the menu link titled
"Trading Desk" then click on the the link "Options Quotes". The information
you will need to enter on the "delayed quotes" screen is self-explanatory. You
will notice a box that says "Just give me the Greeks". Click that box and you
will get the options' Greeks, including the delta.
2) You can also solve for the option delta using our options calculator. There
is an options pricing calculator under the same "Trading Desk" link
the website. This calculator is available in either a Basic or Advanced format.
First time users are encouraged to review the Basic calculator as there are
discussions on the various inputs necessary to calculate an options'
theoretical pricing.
Can I
talk to a live person about my options-related questions?
Absolutely. The Options Investor Services
department is a one-stop comprehensive options resource center that provides
information and supports all products traded on all OCC Participant Exchanges.
By calling 1-888-OPTIONS (678-4667) or by e-mailing
options@theocc.com, representatives
will answer questions and process requests for educational materials and
seminar registrations Monday - Friday, 7:30 a.m. - 5:00 p.m. CST. While not
soliciting securities or providing investment advice, Options Investor
Services assists investors with all of their options-related questions.
You can also get a FREE CD-ROM with over 400
tutorials and 40 interactive strategies on options investing
from
The Options
Industry Council. A wide range of options investors, from
the beginner to the expert can use this educational, interactive CD-ROM. The
Options Investigator CD-ROM is the most comprehensive educational tool
for learning more about the options and options market. The Investigator
has tutorials formatted in a way that permits users to work at their own pace.
Functions include a Strategy Explorer that allows interactive analysis of over
forty different options and stock-with-options trading strategies. The Options
Investigator can be ordered
online or
by contacting an Options Industry Services representative at 1-888-OPTIONS
(678-4667), Monday - Friday, 7:30 a.m. - 5:00 p.m. CST.
An excellent first read on the subject,
this book carefully and completely defines the terminology, explains options
investing step by step, and presents strategies so that it is easy to understand
at each level of risk involved.
Spend less than you earn! People who spend every penny
they make usually end up going broke.......
Take enough risk on the money you save! Playing safe by
putting your money under the mattress or in a savings account
will not make you wealthy..
Remember that.....Fully one-fifth of humanity, some 1.3 billion people,
struggles to survive on less than $1 per day. About 40% of
humanity survives on less than $2 per day. More than a billion
people around the world will go to bed hungry tonight. Life
expectancy in some 32 countries is less than 40 years. If you
have a few extra dollars in your pocket (you don't have to be a
millionaire to make a difference), please share some of your
financial good fortune with others who are in great need.
Think About It... Being in the 'now' brings a freedom, unlike living
in the past or in the future, which is a kind of imprisonment.
This isn't a kind of a denial where you pretend life doesn't have
problems. Life is full of problems, but most of those stresses
and failures are reliving old hurts or worrying about future
concerns. -- Carl Honore
When you 're diagnosed with cancer, you start to
bargain with God: "Let me get through this, and I'll take better
care of myself. I'll get my priorities in order. I'll learn to
live every day to the fullest." Isn't it sad that you have to get
sick before giving yourself permission to live life to the
fullest? -- Robert Schimmel
Look at Life in different & Positive ways
