FAQ's

General Technical Questions:

1. What software is required to use the spreadsheets?

Apart from the 10 Leg Option P/L Master Strategiser which is only available in Apple Numbers, my Options Trading Calculators are available in both Microsoft Excel and Apple Numbers.

2. Are the spreadsheets compatible with both Windows and Mac?

Yes.

3. Can I use these spreadsheets on mobile devices?

Yes, it is possible but they were built for desktop usage.

4. Do I need any prior knowledge of options trading to use these calculators?

Some understanding is required, although I have a blog page that describes everything you'll need to know to become an option trader.

Functionality and Features:

1. What types of calculations can these spreadsheets perform?

They calculate:

• A) The prices of Call and Put options: The Options Price @Now, Options Price @Expiry, the P/L @Now, the P/L @Expiry along with the Greeks, Delta, Gamma, Theta, Vega and Rho for both Calls and Puts.
• B) Option premiums for "0 days to expiry" (ODTE) right down to the last minutes before they expire.
• C) The Expected Market Move (in points) for your chosen time frame, down to the minute.
• D) Implied Volatility (I.V. or Vega) percentages across multiple timeframes, Hourly, Daily, Weekly and Monthly.
• E) Delta warnings in red font if you breach your Delta threshold and short an option with less than a 60% chance of expiring Out the Money. (Set to 60% OTM for Short Sellers - this percentage can be changed in the sheets conditional highlighting rules).

2. How many options positions can I track simultaneously?

Up to 10 legs/positions. A world first for an Apple Numbers spreadsheet!

3. Do these calculators support strategies like Iron Condor, Straddle, or Strangle?

Yes. The 10 Leg Option P/L Master Strategiser (Apple Numbers) allows you to create any strategy with up to 10 legs.

4. Can I input custom volatility, interest rates, and days to expiration?

All Black-Scholes-Merton (BSM) input fields allow you to input the necessary parameters you need for the:

• Underlying Asset Price (S),
• Strike Price (K),
• Implied Volatility, (I.V.),
• Interest Rate,
• Dividend Yield,
• Start and End (Expiry) Dates.

5. How accurate are the calculations, and what data do they rely on?

A) They use the Black-Scholes-Merton (with Dividends) option pricing model formula from Wikipedia.

B) Accurate to 2 decimal places when tested against and compared to the Options Education org website calculator.

6. Does the BSM calculator account for dividends or early exercise on American options?

A) They account for dividends. This was Robert Merton's contribution to the original option pricing formula.

B) The Black-Scholes-Merton (BSM) model is specifically designed for European-style options, which can only be exercised at expiration. This is a key limitation of the model when applied to American-style options, which allow early exercise. For European Options the BSM model calculates prices and Greeks accurately because it assumes no early exercise. For American Options, the BSM model can still be used as an approximation, especially for non-dividend-paying options, where early exercise is less likely. However, it doesn't fully capture the value of the early exercise feature (e.g., for in-the-money options on dividend-paying stocks). If you trade American options the BSM calculator provides a close approximation for most scenarios but might not fully account for all factors, especially in dividend-heavy stocks or deep in-the-money options.

7. Can I plot Greek charts for multiple Option contracts at once?

Yes. The 10 Leg Option P/L Master Strategiser (Apple Numbers) allows the plotting of up to 10 cumulative Greek positions. 10 Individual Greeks can be plotted on a separately provided chart.

8. Is there a feature to simulate changes in the underlying asset price?

Yes, by changing the number entered into the Underlying Asset Price (S) input field in the BSM calculator.

Usability:

1. Are there detailed instructions or a user guide included?

Yes. Each calculator comes with instructions in the form of yellow (Apple Numbers) or red triangles (Excel) near relevant cells, that give instructions and thorough explanations of options concepts like, eg the Greeks and what they mean.

2. Can I customize the spreadsheet layout, colours or output fields?

Yes. You can alter the layout and output formatting and choose your own colours if you prefer to change the light blue input or green output colours or any other colour scheme.

3. Do these calculators support dividends that are paid out over multiple future periods?

Yes.

4. Can I get Greek charts for available Option contracts or my portfolio risk?

A) The charts give a very visual and accurate representation of all Greeks. The single Option Pricer and 72x Greek Charts show how each of the Greeks interact with each other. You can see exactly when to get "In" or "Out" of a trade, by reading the chart and how this affects the P/L of any trade. A must for anyone in the business of selling Puts and Calls.

B) The 10 Leg Option P/L Master Strategiser will also give you a very good look on larger charts at how the Delta, Gamma, Theta, Vega and Rho Greeks for 10 Option Legss (both Calls and Puts) interact with each other as the Underlying Asset moves up or down. Your probability of profitable Options trading is improved by displaying the number value labels of the P/L @Now figures for your current combined 10 Leg position just above the line of the chart so you can see the P/L visually on the chart.

Privacy and Security:

1. Is my trading data secure when using these spreadsheets?

Your privacy is default of my website. No files are read back at the time of download.

2. Are the spreadsheets free from macros or scripts that might compromise security?

Yes.

Specific Use Cases:

1. Can these calculators help me optimize a General Call Strategy?

Starting with the 10 Leg Option P/L Master Strategiser you will first get a feel for the kind of trades you will want to do by using the IV (volatility metric) for the type of trade. Once a strategy is decided you can see it visually in the chart for each leg using strategies like Short Straddles or other multi-leg positions.

2. What should the Price charts meet for a credit spread or an equity risk?

A) The charts give a very visual and accurate representation of all Greeks positions. The SPX has 72 x Greek Charts with 8 Option Price Charts. These Greek Charts versus the current SPX price show you how the position performs.

B) The 10 Leg Option P/L Master Strategiser will also give you a good look at all 10 options or cumulative P/L displayed visually on the chart.

Technical Details:

1. How do I update the ticker data used in the spreadsheets?

Using data from your broker you can select a ticker, copy the bid/ask or mid price into the BSM Calculator where you enter your Option Inputs. Simply copy the current Asset Price and Strike Price into the appropriate input fields in Excel and Apple Numbers.

2. Is a real-time IV feed available?

Apart from the 10 Leg Option P/L Master Strategiser which is only available in Apple Numbers, there is support for delayed price feeds. I have provided Yahoo Finance 15 min delayed price feed code for Underlying Assets like the Dow, Gold and Cable (£/$) which can be copied and used in the Underlying Asset Price input field:

E.g., for the £/$: =CURRENCY("GBP","USD",0) in Apple Numbers.

An integrated asset price feed is convenient, although many traders might already have access to live data from their brokers or other platforms.

3. Can I integrate the spreadsheets with external APIs for live data feeds?

In Excel, you can use VBA (Visual Basic for Applications) or Power Query to connect to APIs if the data source supports direct Excel integration.

In Apple Numbers, a direct API integration is not possible. Instead you could use an intermediary (e.g., a script in Python or Google Sheets) to fetch data and then manually or semi-automatically update the Numbers spreadsheet. I have provided Yahoo Finance 15 min delayed price feed code for Underlying Assets.

4. How can I expand the spreadsheet to add additional options positions?

Currently the 10 Leg Option P/L Master Strategiser will allow you to add up to 10 legs only.

5. Do the calculators handle implied volatility skew or changes over time?

Yes. I.V. Skew / Smile: These refer to the phenomenon where implied volatility varies by Strike Price or Expiration whereas one I.V. figure is quoted to cover all Strike Prices. The BSM calculator doesn't inherently adjust for skew unless you manually input different I.V.'s for each Strike Price, which you can do in each of the I.V. input fields in the 10 Leg Option P/L Master Strategiser or in any of the other BSM spreadsheet calculators.

When you input Implied Volatility into the BSM model, you're entering a single I.V. value, typically derived from an average or the midpoint I.V. of the option's Strike Price. However:

Custom Skew Adjustments: As mentioned above my calculator allows you to enter distinct I.V. values for any / each Strike Price or Expiration, allowing you to manually account for skew.

Advanced Users:

1. Can I integrate these spreadsheets with external APIs for automated data feeds?

In Excel, you can use VBA (Visual Basic for Applications) or Power Query to connect directly to supported APIs.

In Apple Numbers, direct API integration is not possible. Instead you could use an intermediary (e.g., a script in Python or Google Sheets) to fetch data and then manually or semi-automatically update the Numbers spreadsheet. I have provided Yahoo Finance 15 min delayed price feed code for Underlying Assets like the Dow, Gold and Cable (£/$).

Purchase and Support:

1. What is the refund policy regarding the spreadsheets after purchase?

Before download after payment, you will be provided with a unique web page to download the files provided by our digital payment provider, Yumpu.com, owned by the Royal Bank of Switzerland.

2. Will I receive free updates if you improve the spreadsheets?

Yes, updates are provided when available though there may not always be a need for frequent updates.

3. Do you provide customer support if I encounter any issues?

Yes. Please contact me and I will respond to your inquiry -- for non calculator download issues please allow a couple of days.

4. Can I request additional features or customization for my specific needs?

I'm open to suggestions.