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Last Quote
This feature can
be very handy when you are considering a particular option strategy, but you
feel that the timing is just not right yet. This is the scenario: you've entered the current stock and
option quotes and are viewing a possible new or changed position on the
Evaluation View. The strategy has potential, but you decide that waiting awhile
is the prudent thing to do right now. As you go to leave the Evaluation View you
will be asked whether or not you would like to save the 'Last Quote'. If you
click the 'Okay' button, the strategy being viewed will be saved, along with the
calculated implied volatility values.
Once saved, Last Quote can be used in two distinct ways:
1.) As a
quick estimate for a prospective position.
2.) To
compare past and present volatility.
As a
quick estimate for a Prospective Position
After saving the 'Last Quote', the
next time that that particular position file is opened, an additional command button
will be displayed on the Initial View, labeled - 'ReCalc Last Quote'.
To
evaluate an update of the same strategy that was being viewed when the 'Last
Quote' was saved, click this button. The Quote Entry View will immediately open,
prompting you to enter the current Stock quote. Once the Stock quote is entered,
click the 'Go to Evaluation' button. 
CC+ will use the Stock price entered, along
with the current interest rate, current date, and the volatility values saved in
'Last Quote' to reconstruct an updated approximation of the Last Quote. If the strategy
represented by the 'Last Quote' is being seriously considered, these approximate
values should give you an idea if the time has come to make the actual trades
and establish or change the position. If the values generated using 'Last Quote'
are close to the desired targets, it is time to enter the actual Stock and
option quotes. This is easily accomplished from the Evaluation View by
going to the menu and selecting 'Tools/Enter Current Quote'.
This will close the
Evaluation View, and open the Quote Entry View ready to enter the current
quotes. Once the present quotes have been entered, click the 'Go To Evaluation'
button. This is where the alternative use of 'Last Quote' comes in to play.
Comparing Past and Present Volatility
With the actual up to date quote being used
for all the calculated values on the Evaluation View, you can now toggle between
the 'Last Quote' approximation, and the actual quote values. This gives you the opportunity
to compare the volatility values from when the 'Last Quote' was first saved and
the actual quote today. If volatility is presently higher, you are receiving a
greater premium now than when the 'Last Quote' was first considered, the
opposite being true if the situation is reversed. If this is an existing open
position, the volatility when the preset position was established can also be
used as a comparison by going to the Current View to find that value. Knowing the
relative relationship of volatility can aid you in deciding whether or not to
squeeze the market maker for a portion of the option spread, or to go with the
actual quote in making or changing a position. If you decide to do nothing
at the present time, and the Evaluation View is presently displaying the
current quote values, you will be asked if you would like to save these as the
'Last Quote'. This is generally good practice - the more resent quote will be
more likely to result in a better approximation of the situation, the next time
you use 'Last Quote' to gauge a prospective position.
Something
to be keep in mind when using 'Last Quote' - generally speaking implied
Volatility will rise as the option expiration date nears.