Q: Why does the show a '-' in the volatility field for some price values? A: If you enter a price for an option contract that results in a very large or very small implied volatility then the calculator will not be able to generate reasonable results for its calculations. For this reason the calculator places a '-' in the volatility field to indicate that the calculator cannot generate a valuation for this value.
Q: Why does the valuation show all '-' when I select "P & L %"? A: To calculate a meaningful profit and loss percentage, the calculator needs to know the book value of the strategy. If the book value is zero then this results in a division by zero situation which the calculator avoids by assigning a '-' for the value. To get a valid Profit and Loss percentage you must enter a book value for your position.
Q: How is the "Last Trade" value obtained? A: The last trade value is normally the 20 minute delayed last trade for the equity, obtained at the time you selected the equity in the calculator. If the Strategy Calculator cannot contact the server supplying the delayed quotes then it will use the previous closing value as the last trade. Note that if you select "Clear" the last trade value will be updated.
Q: How do I enter a more up to date value for the last trade? A: Often you will have a more up to date value for the last trade of the equity from your live data provider. You can enter this value into the "Price" field of the Equity trade row (first row) of the calculator. This value will then be used in all subsequent calculations.
Q: Where does the default "Price" for option contracts come from, it doesn't match the quote I get from my data provider? A: The default price for an option contract is the theoretical fair value for the contract. This value is calculated using a Binomial Tree model which takes into account variables such as volatility, dividends, cost of carry, current price of the equity and time to expiry. If you have a price for the contract from your live data then you can enter that for the option price and all calculations will then use your updated price.
Q: Not option contracts for an equity are shown in the contract selector? A: The current version of the calculator only shows option contracts whose strike price are with +- 15% of the current stock price and whose expiration date is within 6 months of the current date. This is to reduce the number of contracts shown in the list to improve the speed and usability of the calculator. Future versions of the calculator will allow you to customize these settings.
Q: I get a red cross on the right hand side? A: The red cross is to indicate that the value you have entered is somehow invalid. Alter your values so that they are valid numbers. Also, note that the calculator prevents the user from entering unreasonable amounts for the equity price by not allowing the user to enter a price that is more that 200% of the current price.
Q: Nothing happens when I select "print"? A: Internet Explorer's pop-up blocker sometimes blocks the print result window, despite being configured to allow pop-ups for the Trader's Circle web site. To work around this you can hold down the "ctrl" button when you select "print" to override the pop-up blocker.
