Risk disclaimer and nature of the service
1. What OptionStreams is
OptionStreams (hereinafter "the Service") is a web application that processes public and third-party data on options markets on equity indices (currently DAX and S&P 500) and presents it in the form of tables, charts, statistics and simulations. Its functions include, by way of example: displaying the option chain with open interest, volumes and implied volatility; calculating statistics derived from open interest such as max pain, fair value, money chart levels, gamma exposure and gamma flip; simulating the profit and loss profile of strategies made up of several options under assumptions defined by the user.
The Service is intended exclusively for informational, educational and study purposes.
2. What OptionStreams is not
- It is not an investment service or activity within the meaning of Legislative Decree 58/1998 (Italian Consolidated Law on Finance, TUF) and Directive 2014/65/EU (MiFID II).
- It is not investment advice, whether personalised or generic, and it is not investment research.
- It is not a service of reception, transmission or execution of orders: the Service does not connect to accounts held with intermediaries, does not send orders and cannot do so.
- It is not portfolio management, custody or administration of financial instruments or money.
- It is not a trading signal, an automated trading system or an indication, express or implied, to buy, sell or hold any financial instrument.
The owner of the Service is not an authorised intermediary, is not registered in any register of financial advisers and is not subject to the supervision of CONSOB, the Bank of Italy or other supervisory authorities. Subscribers are not "clients" within the meaning given to that term by investment services legislation.
3. Nature of the content
All the levels, statistics and simulations shown by the Service are the result of mathematical models applied to third-party data. The simplifying assumptions adopted include: option pricing with the Black-76 model, volatility surfaces reconstructed from settlement prices or from available bid/ask prices, standard conventions on market maker positioning for the calculation of gamma exposure. Different assumptions produce different results.
Max pain, fair value, gamma flip and the other statistics derived from open interest describe existing positioning; they do not predict, and cannot predict, the future course of prices. The fact that in the past a level proved to be close to the settlement price does not imply that this will repeat.
Simulation results are not expected returns. Past returns, actual or simulated, are not indicative of future ones.
4. Third-party data, delays and errors
The data comes from third-party sources (including public exchange statistics, delayed quotes and price indications). Unless otherwise indicated in the application, option chains are not real-time: the DAX chain is updated as of the previous day's close, the S&P 500 chain with a delay of at least 15 minutes. The prices of individual options shown in the simulations are theoretical values, not executable quotes.
The data may contain errors, omissions or interruptions not attributable to the owner of the Service, who does not guarantee its accuracy, completeness, timeliness or continuity. Before any trade the user is required to verify the actual prices and conditions with their own intermediary.
5. Risks of options
Options are complex, leveraged derivative financial instruments, suitable for those who understand how they work and their risks. Their value can fall to zero within a short time. Those who sell options may suffer losses that are unlimited or in any case greater than the capital employed. Strategies made up of several options (spreads, calendars, condors and the like) entail execution, liquidity, assignment and volatility-change risks that the models do not fully capture. The market's volatility and gamma regime can change rapidly.
6. User's responsibility
By using the Service the user acknowledges that every investment or trading decision is taken solely independently and under their own responsibility, that they have assessed their own financial situation, their objectives and their risk tolerance, and that, if they consider it necessary, they have consulted a qualified financial adviser. The Service does not take into account the user's personal situation and cannot do so.
7. Limitation of liability
To the extent permitted by applicable law, the owner of the Service is not liable for losses, loss of profits or other damages, direct or indirect, arising from the use of the Service, from reliance placed on its content, from errors or delays in the data, or from interruptions or malfunctions. Mandatory liabilities provided by law remain unaffected, in particular for wilful misconduct or gross negligence and for the protection of consumers.
8. Trademarks and third parties
DAX®, Eurex® and Xetra® are registered trademarks of Deutsche Börse AG. S&P 500® is a trademark of S&P Dow Jones Indices LLC. Cboe® is a trademark of Cboe Global Markets, Inc. OptionStreams is not affiliated with, sponsored by or endorsed by any of these entities.
9. Updates
This disclaimer may be updated; the version in force is the one published at this address. Use of the Service is subject to acceptance of this disclaimer and of the Terms of Service.