How to Use Hoadley Finance Add-in for Excel to Analyze Options and Portfolio Performance
If you are looking for a powerful and comprehensive tool to perform various financial calculations and analysis in Excel, you may want to check out the Hoadley Finance Add-in for Excel. This add-in lets you calculate option prices, implied volatility, historical volatility, hedge parameters, probabilities, futures pricing, value at risk, portfolio analysis, asset allocation, company valuation and more. You can also retrieve option chains and quotes from various sources, including streaming real-time data.
In this article, we will show you how to install and use the Hoadley Finance Add-in for Excel to perform some common tasks related to options and portfolio performance analysis.
How to Install Hoadley Finance Add-in for Excel
The Hoadley Finance Add-in for Excel is compatible with Microsoft Excel (32-bit or 64-bit) running under Microsoft Windows. You can download the latest version of the add-in from the official website[^1^]. The add-in comes with a free trial version with limited functionality, and a full version license for private use that costs $AU176.00 (approx $US120.00). The price includes all the tools and applications shown on the website[^4^].
To install the add-in, follow these steps:
Download the add-in file (HoadleyFinanceAddInSetup.exe) from the website[^1^] and save it to your computer.
Run the file and follow the instructions on the screen to complete the installation.
Open Excel and go to File > Options > Add-Ins. In the Manage drop-down list, select Excel Add-ins and click Go.
In the Add-Ins dialog box, check the box next to Hoadley Finance Add-in for Excel and click OK.
You should see a new tab called Hoadley on the ribbon. Click on it to access the functions and tools of the add-in.
How to Use Hoadley Finance Add-in for Excel to Calculate Option Prices and Greeks
One of the main features of the Hoadley Finance Add-in for Excel is the ability to calculate option prices and Greeks using various pricing models, such as Black-Scholes, binomial, Monte Carlo and more. You can also calculate implied volatility, implied values, percent-to-target and other metrics related to options.
To calculate option prices and Greeks using the add-in, follow these steps:
On the Hoadley tab, click on Option Pricing Models. This will open a dialog box where you can select the type of option you want to price (European or American), the underlying asset type (equity, currency, index or future), and the pricing model (Black-Scholes or binomial).
Enter the required inputs for your option, such as spot price, strike price, expiration date, interest rate, dividend yield or payments, volatility and so on. You can also use cell references or named ranges for these inputs.
Click on Calculate to see the option price and Greeks in the output section. You can also copy these results to your worksheet by clicking on Copy Results.
If you want to calculate implied volatility or implied values from an option price or delta, you can use the Implied Volatility/Values tab in the same dialog box. Enter the option price or delta and click on Calculate Implied Volatility or Calculate Implied Values respectively.
How to Use Hoadley Finance Add-in for Excel to Analyze Portfolio Performance
Another feature of the Hoadley Finance Add-in for Excel is the ability to analyze portfolio performance using various metrics, such as return, risk, Sharpe ratio, alpha, beta, Treynor ratio and more. You can also perform portfolio optimization using different methods, such as mean-variance optimization, risk parity optimization, most diversified portfolio optimization and more.
To analyze portfolio performance using the add-in, follow these steps:
On the Hoadley tab, click on Portfolio Analysis & Optimization. This will open a dialog box where you can select the type 061ffe29dd