I have long felt that option traders should have a way of making strategy decisions based on computer calculations, and that such information should be relatively easy to use and readily accessible. It is with this thought in mind that we have agreed to a joint venture to offer PowerAnalyzer™ and VolatilityAnalyzer™ via our site.

PowerAnalyzer™ is a powerful computer program that allows stock, futures, or index option traders to do calculations and analysis online. There is no need for the user to install software, manipulate or collect data, subscribe to a data service, or maintain a database. All of these tasks are done by the PowerAnalyzer™ software. Therefore, the user can concentrate on what he needs to do – analyze and trade options!

VolatilityAnalyzer™ is a companion product that does a terrific job of picking out situations where volatility is out of line, according to specifications that you design yourself (or you may use the system defaults).

Please take time to read the accompanying description of this software. It is quite thorough and describes not only what these products do but it shows you how to do it. Therefore, it is essentially the user guide as well. You will see that you can analyze strategies across all stocks, search for the best strategy on just one stock, or do "what-if" analyses of anything you desire. Moreover, you can produce customized reports each day in the following broad categories: the "best" covered writes, spreads, and straddles. Create your own input parameters to produce, for example, the types of covered writes that you like to trade. Powerful graphs of profitability and also of volatility – both historic and implied are included, too.

PowerAnalyzer™ is an independent product – not a creation of McMillan Analysis Corporation. However, we have looked at its capabilities intensely and we endorse this product for our customers. I think it is one of the finest online option analysis tools available – and it’s modestly priced. As time goes by, we expect to have some input into what the software does, so it might more closely reflect the specific forms of analysis that we espouse in our newsletters. For example, the straddle buying list from PowerAnalyzer™ will not exactly match the one that we offer in The Daily Strategist newsletter because PowerAnalyzer™ ranks its list on expected return – a valid and statistically correct approach – while the list in The Daily Strategist has the benefit of human analysis as well.

Thus, as the user guide points out, PowerAnalyzer™ and VolatilityAnalyzer™ do not make recommendations, per se. Rather, they allow you to thoroughly analyze an option position before you make a trade. I encourage our subscribers to use them to analyze the recommendations that we make in our various publications.

Currently, the analyses are based on closing prices only but the inclusion of real-time prices should not be far off. However, you can analyze real-time situations by entering the prices yourself. Regardless, the benefits of the option analysis are not dependent on real-time pricing. If a strategy appears attractive with last night’s closing prices, say, then one merely needs to check the current prices during the ensuing trading day to see if they are still in line with the previous night’s close. If they are, then the position is still attractive.

In summary, I heartily encourage you to try this product. I think you’ll find it useful in many, many ways. I’m sure it will lead you to more profitable option trading. Please tour the "Using the Power Analyzer" section above, to get a feel for the product.

--Lawrence G. McMillan

President, McMillan Analysis Corporation

P.S. I want anyone who tries this product to be satisfied with it, so I will make this offer to any person who uses the software. If you have a problem or a question with the software, I will personally answer an email regarding that problem. My personal email address is lmcmillan@optionstrategist.com.

P.S.S. As a "teaser" to show how powerful volatility analysis can be, we are making some volatility information available to you for free, daily. Click here to go to Xtreme – a listing of the most overpriced and underpriced entities in terms of implied volatility.

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