Options Strategy Payoff Calculator: How to Use? Net unrealized appreciation (NUA) vs. IRA rollover? Compare taxable vs. tax-free investment return. Hypothetical illustrations may provide historical or current performance information. It minimizes the cost due to premium by writing a call option of same/similar premium. How much will I need to save for retirement? Optionistics is not a registered investment advisor or Basics of Option Profitability . The Option Calculator computes a series of theoretical option prices based on the options selected and charts the results. Long put (bearish) Calculator Purchasing a put option is a strongly bearish strategy and is an excellent way to profit in a downward market. NSE Options Calculator Calculate option price of NSE NIFTY & stock options or implied volatility for the known current market value of an NSE Option. Which is better, comprehensive plan or high-deductible plan with HSA? This information may help you analyze your financial needs. securities or derivative instruments, and do not advocate the The template will then rank the option contracts accordingly. Just enter your parameters and hit calculate. Simple calculator which helps to calculate the value or price of put and call options using black scholes model. purchase or sale of any security or investment by you or any This stock option calculator computes the theoretical price of a one or two leg option position using Black Scholes. The Interactive Brokers Options Calculator and other software, including but not limited to downloadable widgets provided by Interactive Brokers LLC ("IB") for downloading (the "Software"), is provided for educational purposes only to assist you in learning about … Put option is an option that gives its holder the right to sell an asset, say bond or stock, at a specified exercise price at the exercise date. A long put is a net debit position (i.e. What are the tax savings of a qualified retirement/cafeteria plan? What is the effective annual yield on my investment? This investor sold the option for $800 (8 × 100 shares per option); you put that number in the Money In side of the options chart. Compare taxable, tax-deferred, and tax-free investment growth. How will retirement impact my living expenses? It is implemented by purchasing a put option, writing a call option, and being long on a stock. Should I exercise my 'in-the-money' stock options? What is the return on my real estate investment? It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. The Black-Scholes option-pricing model can be used to compute the price of a put option in light of current market conditions. Should I transfer my credit card balances? What is the future value of my employee stock options? This calculator uses the Black-Scholes formula to compute the price of a put option, given the option's time to maturity and strike price, the volatility and spot price of the underlying stock, and the risk-free rate of return. The example WMT put option has an in-the-money value of $295. Should I pay down debt or invest my monthly surplus? Should I convert to a bi-weekly payment schedule? The Collar is basically a combination of a covered call and a protective put. In other words, a put option’s value is the greater of: strike price minus underlying price (if the option expires in the money) zero (if it doesn’t) Let’s create a put option payoff calculator in the same sheet in column G. The put option profit or loss formula in cell G8 is: =MAX(G4-G6,0)-G5 How much disability income insurance do I need? How do closing costs impact the interest rate? What are my lump sum distribution options? The put buyer has limited losses and unlimited gains, but the potential reward with limited risk comes with a premium that must be paid when entering the position. Quantity should be negative if you are shorting a particular option. How long will it take to double my savings? This page explains put option payoff. read and abide by the full. What is the impact of increasing my 403(b) contribution? Calculate the value of a call or put option or multi-option strategies. Put options are traded on various underlying assets, including stocks, currencies, bonds, commodities, futures, and indexes. The calculations provided should not be construed as financial, legal or tax advice. It is meant to prevent excessive losses, but also restricts excessive gains. What are the tax implications of paying interest? What are the chances of becoming disabled? Calculate. There are two numbers calculated: - Gross Maintenance Margin. What is my potential estate tax liability? Restructuring debts for accelerated payoff. Should I pay or charge monthly, quarterly or annually? Which is better: Cash up front or payments over time? Should I consolidate my personal debt into a new loan? How much will my company bonus net after taxes? The theoretical value of an option is affected by a number of factors such as the underlying stock price/index level, strike price, volatility, interest rate, dividend and time to expiry. Calculate the value of a call or put option or multi-option strategies. Should I pay discount points for a lower interest rate? What is my employee total compensation package worth? What is the value of a college education? Calculate. Try our advanced stock options calculator and compute up to eight contracts and one stock position. The put buyer has limited losses and unlimited Copies are available from your broker, by calling 1-888-OPTIONS, or at www.theocc.com. Compare a 'no-cost' vs. traditional mortgage. Updates. We will look at: A put option’s payoff diagram; All the things that can happen with a long put option position, and your profit or loss under each scenario; Exact formulas to calculate put option payoff; Calculation of put option payoff in Excel; Calculation of a put option position’s break-even point (the exact price where it starts to be profitable) Should I refinance my auto loan at a lower rate? Generate fair value prices and Greeks for any of CME Group’s options on futures contracts or price up a generic option with our universal calculator. When should I begin saving for retirement? How long will my money last with systematic withdrawals? What are the payments on a parental (PLUS) loan? Comparing mortgage terms (i.e. Naked Option Margin Calculator. The Option Calculator can be used to display the effects of changes in the inputs to the option pricing model. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option. The seller makes money only if the holder of the option fails to exercise it. Should I upgrade to a more fuel efficient vehicle? How long will it take to pay off my credit card(s)? I use the formula at Interactive Brokers to estimate your margin. More This calculator can be used to compute the theoretical value of an option or warrant by inputting different variables. Figure 1 also shows various scenarios when the value of underlying changes favourably or unfavourably.