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3 votesPaul Hinkley shared this idea ·
An error occurred while saving the commentPaul Hinkley commented
The Options Analyzer has a nice interface and is relatively easy to use but it is based on he theoretical pricing model (Black Scholes?).
Options analysis (current & back-testing) based on a theoretical pricing model is next to useless. Even when the current data problems (wrong strike intervals, missing contracts etc) are fixed, these raise further doubts as the integrity of the software.
All four options analysis programs using US options I am familiar with are based on historical data. I expect that VV's OptionsPro would be too. I have recently checked an Australian options analysis program and they have confirmed they use historical data.
US, AU and other options historical data is available from companies such as Optionmetrics & Ivolatility.
The amount of software development effort using historical data would be equal or less than that based on a theoretical pricing model.
With respect, it is thus a puzzle as to why this was ever done.
Unlike other correspondents, I would be happy with end-of-day historical data, as my brokerage platform gives real-time data...
I note with disappointment the real time issue was first raised in 2010...