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If you are going to make consistent profits trading then you must be able to understand and forecast the possible effects of:
- Time decay,
- Price movement, and
- Volatility
If you can do this you can be in control of your trading.
The TradersCircle Option Strategy Calculator has been purpose built for options traders to assess the value of their strategies in various market scenarios. It was designed to make it easy to see how time decay, share price and volatility impact on the value of option strategies. Once a trader develops a view of an underlying stock, they can use the Strategy Calculator to compare the risks and returns of different strategies that take advantage of that view.
We built this calculator because our members (serious traders) couldn't find one that was quick and simple to use.
TradersCircle are currently offering the Strategy calculator to all options traders for a free three month trial.
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| Instructions for running the calculator
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| How to use the calculator
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We have put together a brief video to show you how to use the calculator. Click on the link below to begin the video (Macromedia Flash).
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| Calculator Help
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- If you are having problems accessing the calculator, please click here.
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| Feedback
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Please note this calculator is version 1. Whilst extensive testing has already occurred we expect there may be technical issues or more importantly suggestions from you that can improve it. (feedback)
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Purpose: This calculator lets you test, or model, a range of outcomes based on current publicly known information. The calculator does not predict the direction of a share price.
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Note: This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product (this includes a decision in relation to a particular share or option price or strategy). You should consider obtaining advice from a licensed adviser before making any financial decisions.
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Inputs: Into the model are current share price, current prices of put and call options, current dividend details, possible borrowing charges, a maturity date you may choose, and fees and charges that are charged by your broker. Based on known information, the model illustrates a range of outcomes based on the share price at the time of maturity of the strategy you have chosen.
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Assumptions: Are the inputs that the individual chooses to enter into the calculator. Assumptions that the correct share price and volatility etc has been entered are made.
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Limitations: Include entering incorrect inputs into the calculator. Other limitations include the share price not changing over the chosen time period, which may result in discrepancies. The inputs into the model (see above) change over time e.g. share prices will change, dividends may change, the fees you are charged may change.
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The Capital at Risk:Indicated is the maximum loss you will incur, based on the inputs you have entered.
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| General Advice Warning |
Any advice provided by TradersCircle (including its website and representatives) is general in nature and does not take into account your financial circumstances. Before making an investment decision based on the above, you need to consider whether the advice is appropriate for your own personal financial circumstances. This might mean that you seek personal advice from representative authorised tp provide personal advice.
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| Other Warnings |
Any statement by TradersCircle is based on information from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.
The information contained in this site has been prepared with all reasonable care. However, except to the extent required by law, neither TradersCircle nor any of its employees agents or contractors makes any warranty or representation as to the completeness, confidentiality, accuracy or fitness for purpose of the information contained in this website.
TradersCircle does not warrant or represent that the site is error free or free from viruses or defects. You must do all that is necessary (including using virus checking software) to satisfy yourself that accessing this website will not adversely affect your computer system(s).
In this website, any frames, links or other references to other websites, persons or information are produced solely for convenience. Those references are not an endorsement of those parties or their products or their services. TradersCircle does not warrant the accuracy or suitability of any information contained in this or any other website.
The content is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any financial products. Opinions expressed on this site are subject to change without notice and TradersCircle which produced this content is under no obligation to update or keep the information current. TradersCircle is not liable to you, except to the extent required by law, for any loss or damage resulting directly or indirectly from any access to or use of this website.
OzFinancial Pty Ltd (trading as TradersCircle) holds an Australian Financial Services License 241041. Please refer to our Financial Services Guide (FSG) at traderscircle or request one to be sent to you by emailing admin@traderscircle.com.au
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