Options Strategy – Options Evaluator
Video Tutorial
Options Evaluator – Valutatore di Opzioni
Understand the Options Evaluator window
Options Evaluator is a tool that allows you to graphically represent the Greek of an option based on the parameters set by the user. The graphic representation can be in 2D or in 3D.
Options Evaluator allows you to analyze every single option at a time, a more complex feature in beeTrader is Analysis which shows the strategy as a whole with all the legs that make it up and therefore allows to analyze the strategy in its entirety.
Parameters
-
Underlying Price: price of the underlying;
-
Options Type: type of option and calculation method;
-
Strike: strike of the option to be analyzed;
-
Expiry Date: expiry date of the option to be analyzed;
-
Analysis Date: date of the analysis, ie the date on which the Greek numbers are to be calculated;
-
Implied Volatility: volatility implicit of the option to be analyzed;
-
Risk-Free Rate: risk-free rate of the domestic currency with which the option is listed;
- Foreign Risk-Free Rate: to be set only if the option is quoted with a currency other than the domestic one. Represents risk-free rate of the base currency (foreign);
- Upper Barrier: only for barrier, digital and touch on FX options, set upper barrier level;
- Lower Barrier: only for barrier options, digital and touch on FX, set lower barrier level;
- Premium Convention: only for options on FX, select the way in which the option premium is valued;
- Delta Convention: only for options on FX, select the way in which the delta of the option is valued.
Results
Once the parameters are set, the Results section shows the value of each Greek, divided according to the coloring by first derivative (coral color), second (green color) and third (blue color), or first order Greek, second or third order.
Relations
The Greeks are linked together according to the relationships expressed in the Relations table.
Example: The Greek Speed represents the variation of the Gamma with respect to the variation of the Spot Price.
The Greek frets are subdivided according to the coloring by first derivative (coral color), second (green color) and third (blue color), or Greek of first order, second or third order.
2D Chart
3D Chart