Option Premium max. V1 - with excel Solver

March 6th, 2016, 07:30 AM

How to maximize premium for a covered call writing options OTM (trading price < strike)
only applicable for users without such tools implemented in their trading softawre

one way to do so is to use excel capabilites web scraping and solver add-in
anyone experienced in this procedure?

March 6th, 2016, 07:40 AM

How to get to a solution:

- scrap web pages and read-in tradinge price of share, strikes, ask and bid premium at strike and save data in excel sheet for all selected instruments.
- now find trading price next lower the strike for all selected instruments & create new table on excel new sheet
- now give all columns a headline like: symbol - trade price- strike - premium - sum of premium - sum of volume $
- call/activate excel add-in Solver
- start solver and fill-in conditions

March 6th, 2016, 07:44 AM

conditions for excel solver:

Task for solver:
- give me max. premium out of all selected instruments ( ALV, DBK, DAI,..or US-symbols ..etc)
- max shares per instrument limited to 50 contracts
- without overriding giving purchase volume (i.e. 500K$) example shows DAX30 Instruments ($GER30)

..since I have too less posts no link or picture is allowed...sorry..see next post

March 6th, 2016, 07:51 AM

set up excel for solver add-in

select in excel main menue ->extras....etc. and select solver to be activated

(more descriptiions are found in weg......sorry no links are allowed yet

now Solver should be found on main menue list Data...and sub menues

...now following data inputs for solver conditions

March 6th, 2016, 08:01 AM

example for solver conditions are:

volume: 500.000

max shares per instruments:
50 contract per share
- on eurex in germany the number of contracts traded is much lower compared with numbers of contracts per share traded in the states

sum up in main table of excel sheet the colum
premium at a given strike
and volume (trading price * number od Instrument)

on next info i would like to show the results in excel sheet displayed after solver was running as a picturam allowed to do so now

key feature are marked in picture in blue "circles"

March 6th, 2016, 08:05 AM

no a cutted picture shows results - need more details - just cont.

Prm2 (yellow) line 11 belongs to strike Strk2(blue) and
P2 (yellow) is the sum up of all stk2 (yellow) * P2 (yellow) lines from 11..line 48

so I would buy -->contracts- strike - Premium - Opt expiring
500 x ALV..................5........145....1.62.........Fr. 18.3.16
1.400 * BMW..............14.......80.....2.96..........same date
2.000 * CBK...............20.......7.8....0.26.........same
5.000 * DBK...............50.....16.5....0.84.........same
and so on..

March 6th, 2016, 08:49 AM

this picture shows the solver condition for the optim. run of excel solver

Option Premium max. V1 - with excel Solver

Discussion in Options

Option Premium max. V1 - with excel Solver