Further KnowledgeTools, Links, Articles & Research
Option Strategy Sites
The Options Playbook is an option trading strategy website sponsored by Ally Financial Inc.
The site provides reviews for an extensive list of option trading strategies, categorizing them by the level of knowledge or expertise recommended.
1) A good mechanical review of a large quantity of trading strategies. SOI does not necessarily agree with the categorization of strategies, nor with the applicability of some strategies.
2) The site takes a universal approach to presenting strategies, though SOI would recommend against a significant number of the presented strategies as generally unprofitable transactions with negative expected values.
Investopedia provides general high-level information on a number of option trading strategies, characteristics, and articles.
Tastytrade is a derivatives focused financial network with current daily content. Tastytrade is aligned with the Tastyworks financial trading platform / brokerage.
Focused on derivatives trading, Tastytrade provides detailed exposure to option & futures trading, strategies, and research.
Option Alpha has developed into an automated option trading platform from its beginnings as an option trading website. The site offers a variety of courses detailing option characteristics and trading strategies.
Option Assessment Tools
1) A flexible Black-Scholes stock option pricing model that can be applied to basic strategies and custom combinations.
2) Note that the pricing model is based on European style options.
3) The site provides insight into option characteristic values (Greeks) and implied volatility.
4) Theoretical values and expiration payoffs are presented in graph and matrix formats.
5) The model can also be applied to futures options.
Option Math provides an option pricing calculator and an implied volatility calculator in a downloadable Excel spreadsheet format.
Don't Quit Your Day Job (DQYDJ)
This site is an amazing resource!
DQYDJ is a finance and investing website centered on research, interactive features, tools, and calculators that provide significant value to investors without requiring a personal investment of time and effort to gain insight.
To quote from the about page, “DQYDJ is a trusted source for statistics, economics, and financial strategies.” The quotation is an understatement of value provided.
1) The S&P 500 research and tools provide a wealth of knowledge.
2) The net worth and income sections provide the means to compare personal situations against various demographics.
3) The health segment offers an interesting comparison of physical characteristics.
4) Personal finance contains many articles and research summaries on everything from credit card usage to retirement plan comparisons.
5) The economics section contains various studies of interest from personal behavior to the impact of inflaction.
6) The segment containing calculation tools is astounding. Want to count in hexadecimal? Yep, there is a calculator.
Options Clearing Corporation (OCC)
The OCC manages the clearing and settlement for equity derivatives. Their mission includes promoting stability and financial integrity in the market.
The OCC site provides education services through online classes and webinars. They also provide details on marketplace option activity, risk management guidance, option quotes, and pricing calculators.
Finally, the OCC offers details on the performance of options subject to corporate activities (acquisitions, splits, etc.) through option adjustments.
Macrotrends offers resources on a wide variety of assets, from equities to currencies. The research tools built into the site allow for quick and easy assessments of assets, from general characteristics to historic ratios.
Multpl provides a number of economic ratios and statistics in a clear, simple format.
I originally used the site solely for the Schiller CAPE Ratio (‘Schiller PE 10 Ratio’) under the S&P 500 Stats, but then found the site encompassed many more economic variables.
VIX Term Structure
The VIX Futures Term Structure provided by VIXCentral.com
Financial Crisis Observatory
The Financial Crisis Observatory (FCO) is a scientific platform aimed at testing and quantifying rigorously, in a systematic way and on a large scale the hypothesis that financial markets exhibit a degree of inefficiency and a potential for predictability, especially during regimes when bubbles develop.
A quick look at the gold/silver ratio both current and historical.
The CBOE website has a number of online courses from introductory level to intermediate level detailing option characteristics, strategies, indices, theory, and application.
CME Group Education
The CME Group offers online courses, webinars, programs and simulators to better understand the derivatives market. The simulators provide a great opportunity to test knowledge and expected outcomes.
The Options Insider
The Options Insider offers a number of podcasts from basic education to volatility products to futures. They also provide articles and lists regarding current option markets.
A site by CNBC that provides articles and podcasts regarding current option trends and strategy application examples.