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John Locke Option View

Discussion in 'Options' started by Mark Mosley, Dec 21, 2015.

  1. Mark Mosley

    Mark Mosley Member

    I came in late this morning for John Locke's monday morning webinar. I didnt get the whole explanation, but I think the jist of it was that Optionview changed something about their algorithm and their greeks are no longer accurate, especially to the downside, with the better numbers coming out of TOS using the volatility smile approximation setting. Would anybody have a better explanation of what I think I heard during this morning's webinar?
  2. Jim Clements

    Jim Clements Active Member

    That's essentially correct. For the current OV release (7.81), John suggests using OV variable model Greeks to the upside, and either TOS volatility smile or OV EIOIO Greeks to the downside.
  3. Rick

    Rick Active Member

    off the top of my head:
    1) John may abandon OV, mainly due to modelling problems to the downside (as you stated)
    2) Going forward with his website trades he will use OV with the EIOIO setting. However this can overestimate loss to the downside so could try 75 max delta instead of 50 in the M3.
    3) He mentioned using Iron Butterfly configuration - keep as many options OTM as possible.
    4) Can use TOS with Vol Smile setting, but not for P/L.
    5) He mentioned ONE may be viable candidate but still a work in progress.
    I'm sure there was more so others can correct me and chime in.

    Andrei likes this.
  4. Georges

    Georges Well-Known Member

    Time ago (months) my practical experience, early versions of Optionvue, when I traded BWB positions about similar as
    Dan Harvey's BWB "Road Trip" Strategy.

    Best modelling was for me
    to the upside EIOIO
    to the downside Variable model
    Now it seems the opposite when I read this post.
  5. GreenZone

    GreenZone Well-Known Member

    John said that currently the best modelling available for greeks is TOS vol smile.
    If you don't have access to that, then you could revert to EIOIO.
    TheSpeculator152 and Boomer34 like this.
  6. Georges

    Georges Well-Known Member

    GreenZone, Thank You
  7. Andrei

    Andrei Well-Known Member

    My annual subscription for OV will be expiring in about six weeks. I am seriously considering switching to ONE and TOS smile. I would need ONE for tracking my trades and back-testing and use TOS smile for my trading until ONE is proven.
    How do I get access to ONE beta?
  8. Duane Glick

    Duane Glick Member

    Go to optionnetexplorer.com and then go to downloads . You scroll down and you will see download beta version 1.27.15
  9. Andrei

    Andrei Well-Known Member

  10. John Goldsmith

    John Goldsmith New Member

    Anyone know if the most recent releases of OV (7.83) have helped the issues mentioned above? ( I think I heard they were considering reverting to 7.67 calculations).
  11. Kevin Lee

    Kevin Lee Well-Known Member

    OV 7.83 greeks are very close to 7.64. I don't have 7.67 to compare but I think 7.64 and 7.67 are very close as well.

    So, for now, personally I consider this issue closed. I'm trading completely based on 7.83 and found that to be reliable.
  12. Andrei

    Andrei Well-Known Member

    It seems that the latest release is close to "old" model. So I am no longer switching between TOS OV models. However, I find the whole episode very unsettling. The sudden update to their model was a shock and what is worse they tried to deny there was problem. Make me a bit uncertain about continuing with OV. I am still considering ONE, although it will involve some risk of switching to a new system, meanwhile I will probably go with month-to-month payment plan with OV.

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