|The Option Model for the New Millennium.
|OPTION SERVICES for COMMODITIES, CORPORATION:
The OSCC Option Model System.
Our "secret formula" and its consequences!
P = T(((T-S)/T))^ABS(D)
The OSCC Option Model Formula Basics.
The present option model took two Ph.D.s an entire book to explain. It requires massive computing power to do all the iterations involved sine they use the entire option price, including both intrinsic and time value using a log normal distribution formula.
Our formula requires no iteration and is a simple straight forward calculation.
The OSCC Option Model System
is basically very simple.
You will notice that this changes both actual time value premium and our calculated value to straight lines. These lines all meet at the head. The head is an option premium value for a strike price equal to the future. This chart is for calls but the chart for the puts has virtually the same head values. This "head value" is what we plot on our premium charts. As you study our charts you will see that this "head Value" can be dramatically different for different contracts on the same future. I have never found any relationship between the risk in the options , what the futures is doing or anything else in the market that relates to the up and down movement of the "head value" I challenge any one to show any relationship . I have no idea how this value is being set, but by looking at my charts you can see that it is being set, This is what plaintiffs are going to exploit when they try to recover all their losses.
The same things can be said of the arms. Their slope floats up and down
without any logical reason.
The formula to put in a MS Excel cell is
How is the top and slope determined?
1. You can take the raw data you get from your data vendor, determine
the Head "H" and then determine the a real time price for the
option at any strike price, even if that strike price is not traded.
Protection of our formula.
This formula is protected by both a Patent Pending filing and a Registered Copyright. The Registered Copyright allows us to recover damages and attorney fees. We have set damages at $100.00 per option side traded, determined or data distributed per second.
We also have a new
"chart explanation page" to help explain
what these charts show and how to use them.
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Last Updated on 10/31/2019
By Tom B
As used throughout this web site: 10/31/2019
This site relates to option trading of commodity options and futures with strategies that buy or sell
puts and calls either long or short for profit on treasury bonds and notes, Dow Jones Index, soybean products, corn, wheat, oats, rough rice and T-Bond
options on the CBT, Chicago Board of Trade through "floor
traders". We are also doing 6 currencies from the CME, the Chicago
Mercantile Exchange, the Japanese Yen, British
Pound, Swiss Franc, the Euro FX (ECU) and the Australian and Canadian dollars.
We also do 5 agriculture products, the S&P 500, NASDAQ 100 and Eurodollars
related to European and Economic Monetary Union (EMU) interest rates. Commodities are a high risk speculative hedging investment
and traders should use brokers for trading contracts who keep
their funds and money in accounts with high rates. This site provides free commentary, and technical analysis on commodity futures
and option premiums by OSCC from our futures charts and option charts for
use by traders.
This site no longer provides free quotes, although we do provide a free commodity ticker.
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