1.What is Option Price Calculator
Option Price Calculator is a feature that adopts the famous Black-Scholes Model as the underlying instrument, which calculates the expected option price based on the user's input, such as stock price, implied volatility and days-to-expiration.
2.Where to find
Stock Details Page -> Option Tab -> Option Detail Page
3.Learn how to play with it
As the name implies, this feature is used to predict the future price of an option.
Scenario 1:
Suppose the stock price of the underlying is expected to rise to $186.53 in 5 days, how much profit will be gained if you buy a call option now?
Scenario 2:
Suppose you bought a call option but the stock price is moving downwards, how much loss might be accrued in 5 days?
Scenario 3:
Company XYZ is announcing earnings the next day, we assume that there will be a volatility crush after the earning's release, how much profit is theoretically possible if I sell a call option today?
Scenario 4:
Company XYZ's stock price is soaring during pre-market hours and you want to liquidate your holding options to collect profit. With Option Price Calculator, you should be able to set a precise limit order and sell your option once the markets open.
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