Falcon7 Tutorial
Opti=
on
Watch
With
Option Watch, you can view consolidated tick-by-tick data of options scrips. Therefore, you can monitor multiple securitie=
s at
the same time as well as compare the trend of your selected scrip with that=
of
the market. You are given the added privilege of visualizing graphs of Call=
and
Put options.
![3Dtime](3D"OptionWatch_files/image002.gif")
Time Required: 15 min
Option Watch ![3D"opt](3D"OptionWatch_files/image004.gif")
![3Dwatch=](3D"OptionWatch_files/image006.gif")
Go to Watches menu-> Options Watch as
shown in figure 1.
Figure 1 =
&nb=
sp;
The follo=
wing
window shows option watch with updated columns:
![3D"option](3D"OptionWatch_files/image008.gif")
Figure
2
The above figure shows the various inp=
uts
and values in the option calculator.
Fields Description ![3D"d3A%20big%20pack%20notepad"](3D"OptionWatch_files/image010.gif")
Here, the=
options
which are unavailable in market watch will be explained.
·=
; =
·=
; =
In Scrip Selection – Option first select the Exchange, then
enable Symbol Filter and finally select the scrip. A drop-down box below the
scrip selection box will show the applicable Strike Prices. You can check on the appropriate boxes.
·=
; =
You can even add an Expiry Filter. Available dates are
shown in the box.
·=
; =
You may add Call and Put filters by checking on Type
Filter.
|
“Call=
221;
option gives the buyer the right but not the obligation to buy a quantity=
of
the underlying asset at a given price on or before a given future date. =
“Puts” option gives the buyer the right but not =
the obligation
to sell a quantity of the underlying asset at a given price on or before a
given future date. |
·=
; =
You can opt for Active Options or Show All options; selecting the former will enable display of o=
nly
active Options scrips in display pane, while the latter will cause display =
of
all scrips, irrespective of whether they are active or inactive.
·=
; =
Once you are done with the
settings, click on Find button=
. A
list of matching scrips will be shown. Select the required scrips, by ticki=
ng
in the appropriate check boxes. By default, all scrips are checked.
·=
; =
Click on Add to add selected scrips
·=
; =
To make changes in the settings, cl=
ick on
Back.
·=
; =
In Group Selection box, se=
lect
the Exchange, group type and group and finally click the Green Tick (Apply) button
·=
; =
You can change the group a=
ny
time by following the same procedure
Settings![3DSetting-icon](3D"OptionWatch_files/image012.gif")
- The
option scrip type can sel=
ected
from the scrip selections options grid.
- Inputs =
![3D"Panel%20Setting%20Icon"](3D"OptionWatch_files/image013.jpg")
Various inputs have b= een provided which can be altered and thus greek values, implied volatility etc= can be calculated.
- Spot
rate: It is the price that is quoted =
for
immediate settlement of a stock. You can make a selection between Futu=
re
rate and Cash rate.
- Drop-down:
Parameter on the basis of which option price needs to be calculated ca=
n be
selected form the drop-down.
- Future
Rate: It shows the change in future price of fut=
ures
stocks
- Cash
Rate: It shows the change in cash rat=
e of
call/put options
- Strike
price: It shows the current price of
options scrips
- Days2Expiry:
It shows the number of days after which the options contract would exp=
ire
- Risk
Free % : It is the interest
rate of options contract
- Volatility:
It is the variation in price of stock as per market flow change.
- Refresh:
Updates values as per market change. Strike Price, Days2Expiry, Risk F=
ree%
and Volatility values can be altered as per requirement and the altered
values will get updated in the display pane.
- Actu=
al:
Ticking on this updates actual price values as per market change
Buttons=
![3D"final](3D"OptionWatch_files/image015.jpg")
- Price/Greeks:
Click on it calculate the price
values and greek values of the selected option stock
- Implied
Volatility: Click on it to calcul=
ate
the implied volatility of the selected option stock
- Save:
Click on it to save the settings =
made
- Load:
Click to load the saved option
calculator file
- Expo=
rt: Click
to export the whole data in .=
csv
format
Call and Put
The updat= ed theoretical values, actual values and implied volatility of call and put options are displayed in this provided refresh is checked.
Removing tick from refresh stops updating theoretical values= and implied volatility
- Display
Pane
![3Ddisplay](3D"OptionWatch_files/image017.gif")
- Values
in bracket indicate –ve values.
<= span style=3D'font-size:12.0pt;line-height:150%;font-family:"Microsoft Sans Seri= f","sans-serif"'>
You can open multiple instances of option calculator at a ti= me
Practice![3Dnotepad-107](3D"OptionWatch_files/image019.gif")
Try pract= icing the following activities for your understanding:
- and
calculate Price and greek values for that scrip in case of call and put
options
-
References
![3Dreferences](3D"OptionWatch_files/image021.gif")
- ht=
tp://en.wikipedia.org/wiki/Option_(finance)
=
- ht=
tp://en.wikipedia.org/wiki/Option_(finance)
- Values
in bracket indicate –ve values.
- Spot
rate: It is the price that is quoted =
for
immediate settlement of a stock. You can make a selection between Futu=
re
rate and Cash rate.