Troubleshooting & FAQ
Last reviewed: by Options Analysis Suite Research.
Troubleshooting & FAQ
Common Issues & Solutions
Greeks Showing NaN or Infinity
Causes & Solutions:
- Zero time to expiry: Switch to PDE model for expired options
- Zero volatility: Set minimum volatility of 0.01 (1%)
- Extreme moneyness: Use Binomial or Monte Carlo for deep OTM/ITM
- Numerical overflow: Reduce strike range or adjust model parameters
Slow Performance
Optimization Steps:
- Reduce Monte Carlo paths (try 10,000 for initial estimates)
- Lower Binomial tree steps (100-200 often sufficient)
- Collapse optional diagnostics panels when focusing on core pricing
- Close other browser tabs to free memory
- Use FFT model for multiple strikes instead of individual calculations
- Enable GPU acceleration in browser settings
Data Not Updating
Check These Items:
- Verify market hours (options update 9:30 AM - 4:00 PM ET only)
- Check for trading halts on the security
- Refresh the page to reset WebSocket connection
- Clear browser cache if data appears stale
- Verify ticker symbol is correctly spelled
Model Convergence Issues
Model-Specific Fixes:
- Implied Volatility: Widen initial bounds, use different starting guess
- Heston Calibration: Adjust Feller condition, check parameter bounds
- SABR: Ensure β ∈ [0,1], check ATM volatility input
- American Options: Increase grid density near exercise boundary
Frequently Asked Questions
Q: Why do different models give different prices?
A: Each model makes different assumptions about market dynamics. Black-Scholes assumes constant volatility, while Heston allows stochastic volatility. Jump models account for discontinuous moves. The "correct" price depends on which assumptions best match reality.
Q: What's the difference between implied and historical volatility?
A: Historical volatility is calculated from past price movements. Implied volatility is derived from current option prices and represents market expectations. IV typically exceeds HV due to risk premium.
Q: Why are my American and European prices identical?
A: For non-dividend paying calls, early exercise is never optimal, so American = European. For puts or dividend-paying stocks, prices diverge, especially when deep in-the-money.
Q: How do I handle weekly vs monthly options?
A: The platform treats all options identically - just input the correct days to expiration. Weeklies often have different volatility characteristics, so calibrate models separately.
Q: What causes volatility smile?
A: Market factors include: fat tails in return distribution, jump risk, supply/demand imbalances, and leverage effects. Models like SABR and Heston capture this naturally.
Q: When should I trust the model prices?
A: Model prices are most reliable for liquid, near-ATM options with 20-60 days to expiry. Be cautious with: illiquid options, extreme strikes, very short or long dated options, and during major market events.
This page is part of the Options Analysis Suite documentation hub. Browse the glossary for term definitions.