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Old 01-23-2002, 09:57 PM
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Default Re: Option Valuation software



To my memory, OptionVue was just a fancy plaything for academic geeks, and OptionStation is a newish back-testing and search/filtering platform for room traders. MicroHedge cranked out all the independent-trader sheets on the PSE and CBOE that I ever knew of.


So far as the statements on the floor, they are primarily position and delta sheets, rather than pricing sheets. Meaning, traders do not really look at those sheets to figure out what to pay for an option and when. There are option prices with various implied volatilities quoted all over the room, and the last place you need to look is a sheet.


Put differently, if your plan is to simply stand around until you can win a bid and get the price on your sheet, don't expect to live in a big house. A computer just reflects back the inputs you plug in, and those inputs are presumably designed to fulfill a result you originally cooked up in your head.


So far as handheld screens some people use, that is different. Some are brokers getting orders routed in by radio, rather than by hand or runners from wire operators, and some may be traders coordinating risk with a firm-wide portfolio, or something. But I haven't been down there in a dog's age, so I am sorry if no one else answers.


leroy
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