R&R Option Calculator

Statement from R&R Development to Potential Customers:
This is not just another option calculator for the Apple App Store – It’s The Option Calculator.

(Re)Introducing Customer Oriented Product Development:
R&R Option Calculator is an option calculator made with an understanding of the critical success factors of option traders. Focus has been placed on factors such as functionality, convenience and with a special emphasis on design complementing the beautiful Apple iPhone platform - and it’s all adding up to great customer value for money.

The Option Calculator – What Value It Offers Our Customers:
The Black-Scholes formula has been used as the underlying model in the application. The Black-Scholes model was originally made to calculate “the greeks” for European type options. Hence the option calculator will be able to correctly calculate “the greeks” for European options.
American type options will be calculated approximately correct - with some margin of error.

Option sensitivities:
The R&R Option Calculator gives the user the ability to quickly access vital information about an option’s sensitivities. The user only needs input data on the price of the underlying asset, desired strike price, days to expiration, the risk free interest rate and expected or implied future volatility. The input data will generate the essential option greeks for both call and put options (delta, gamma, theta, vega, rho and lambda) as well as a theoretical fair value price for the option.

Introducing Lambda:
R&R Option Calculator is one of the few option calculators on the Apple Application Store, at the time of writing (Oct. 2009), capable of returning the lambda greek variable which is an expression of leverage gained by using options instead of purchasing the underlying asset the conventional way. Another way of interpreting the Lambda coefficient is to look at it as an expression of how much the option price will change with a 1 % change in the value of the underlying asset. Hence a lambda coefficient of 5 means that the option price will change 5 % with a 1 % change in the price of the underlying asset due to the leverage gained by trading options.

Currency:
The product is exceptionally user friendly and opens up for some user customization. The users will be able to choose the currency symbol of their choice in the settings menu. The currency symbol will then be used in the model itself to help the trader keep track of his exact risk exposure should s/he be trading in a foreign currency.

Shake to Clear Feature:
The options calculator will be able to clear the input data from the input boxes, simply by shaking the iPhone. To protect data it is possible to activate and deactivate a warning in the settings menu before the data is cleared.

View “the greeks” on a per Contract Basis:
The settings menu will also allow the user to enter the exact contract size (e.g. 100) by doing so the trader will be able to press the small arrow in the calculator toolbar changing the way the option greeks are expressed from a per underlying asset basis to a per contract basis - this again helps the trader keep track of his risk and is convenient in terms of showing the trader how much the contract will move with changes in the risk metrics.

The Option Strategy Guide:
The application contains even more value! We have added an introduction guide for both basic and more advanced option strategies. We felt we wanted to provide customers with an at hand knowledge about some of the most utilized option strategies e.g. Long call, Long Put, Bull Long Spread, Bear Put Spread and more.

“The Greeks” Guide:
We have added a comprehensive guide to understanding option greeks. Learn more about delta, gamma, theta, vega, rho and lambda and its all right at your fingertips.

Check out our website to see a video presentation of the R&R Option Calculator.

更新履歴
- Fixed iOS4 bug in calculator
- Compatibility with iOS 4 multitasking
- iPhone 4 icon added