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The Option Model for the New Millennium. |
OPTION SERVICES for COMMODITIES, CORPORATION: |
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To reduce the load time of these chart index pages we
have separated
the 38 commodities we plan to do, into 5 groups each with their own
chart index
page. Each active group has a link to its' page. The group pages have no
menu on left or text explanation, as found on the Master Chart page.
We have a new
page to help explain how our charts
look over time. This is an explanation of what these charts are
and how to use them.
This page contains links to all these
market pages. This page also has an explanation of our option and futures
charts not found on the master market pages. Comments
and analysis can be found in our when
appropriate. We are mathematicians and not writers so if you have
questions or don't understand our explanations of our charts
Go to: Forums visited
list and contact information.
Explanation
of OSCC Option Premium Charts
These charts reflect the relative Normalized Total Dollar
Option Premiums for these contracts and are not
indicative of individual strike prices in the contracts. For an explanation of our definition of
Option Premium see OSCC Model
Premium This will give you an idea of how to use diverging or
converging premiums against one another or between contracts.
The option contracts are done in two charts, sometimes three.
The first chart has the 10 trading day moving average of the individual
option contracts. (Milk, Eurodollars, Corn, and Dow Jones have two, odd and Front Month
expiration date contracts). In theory all contracts should
have the same value, see .
A second has a total long
term 10 trading day moving average of the average of all contracts
combined with the same data
adjusted to a fixed $100,000 futures value as a 10 trading day moving average. A lower premium per
$100,000 future means this is a better return on invested dollar.
There are historical charts for 1999 to date for
CME and 5/1/00 to date for CBT.
The long term chart covers from 1/4/99 to Jan 2002.
OSCC
Predicted Futures
What we have done is to take the algorithm we use for T-Bonds
and apply it to CME Futures. Check our T-Bond page for
accuracy comments and restrictions. The charts
show today's future value and our predicted value for a year
from now. Also we show the difference between the two as a percent. The
old format T-Bonds use a tick value. We also show for some futures how the futures
beyond a year relate to
our projected values. These are of course, estimates, and no reliance or decisions
should be based on them without consulting other sources
and a broker.
10 trading day
Chart:
We have changed from a 10 week to a 10 trading day moving average
because some readers have stated the detail they saw before is
missing, Our Daily value is the average of all the contracts for
that day. The individual contracts vary enough that it causes the daily figure to vary
substantially. Therefore we show the value of a 10 trading day
moving average. This seems to show good patterns that can be used
to help make trading strategy decisions. For example in September 2001 a
trader with this information and the advice of a broker could
see that the European currency premiums were rising. There are many cross currency strategies
that could have taken advantage of this. The Canadian Dollar on
the other hand was steady and could have been used as a an anchor
for other strategies. We are working on some algorithms that may
give an idea of where the premiums are going in the next few
days.
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We have a new
"Chart explanation page" to help explain how our charts look over time.
This page includes an explanation of what these charts are and how to use them.
For a better understanding of what we do please read these
pages.
--- About Us What we found
that prompted us to develop our option program.
--- The OSCC overview of option trading.
--- The
OSCC Option Model.
--- Products
--- The Accuracy of the OSCC Option Model.
OR Go to: Forums visited
list and contact information.
Please read our
DISCLAIMER AND AGREEMENT
for use of this site.
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Last Updated on
10/31/2019
By Tom B
As used throughout this web site:
10/31/2019
OSCC is a trademark of Option Services for Commodities, Corporation.
CME is a registered trademark of the Chicago Mercantile Exchange, Inc.
CBT, CBT and Project Aâ are Registered Trademarks of the Chicago Board of Trade.
(c) Copyright 1999-2007 OPTION
SERVICES for COMMODITIES, CORPORATION All Rights Reserved
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 bond, 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.