9 Top iPhone Apps for Traders
Jim Woods, November 6, 2009
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App #1: Options Watcher
This app uses the Black-Scholes model to calculate the price of a put or call option related to any underlying security traded in the U.S. markets. The inputs used in the calculation are the strike price, the price of the underlying security, the risk-free rate, time to maturity, the dividend rate, and the volatility of the underlying security. Options Watcher provides close approximations to the price of the underlying security, the risk-free rate and the volatility.
I like this app because it provides "the Greeks" -- delta, gamma, vega, theta and rho -- which represents the sensitivity of the option to changes in any of the input variables. The second part of the application calculates the implied volatility of the option, i.e., the volatility implied by the market price of the option based on the Black-Scholes model. Options Watcher is a must for any hardcore options trader.
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