Wed, May 22, 2013, 4:24 PM EDT - U.S. Markets closed
Something that would tell you what the premium is for a certain option if the price goes up or down.
Wow, I Volatility is amazing. If only I knew about it 2 days ago. Now I can set GTC orders because I can calculate the premiums.
I waited weeks for AGNC to hit 28, and when it did, my limit order never placed. Sigh...
Small caveat...the calculator will almost always(80+% of the time) give you values less(Long options) than what "ask" is at for the current PPS on your option chain.
Such is the nature of the bid/ask spread and the fudging by the Roman tax collectors(MM's). So there is some frustration in not getting the "best" price that the calculator suggests is fair.
It is good for a general reference, though, for a relative value scale between various strikes and contract months.....that is how I use it....
It is also a good learning tool , especially observed by varying IV and Interest and noting the effect made on premium.
ivolatility. You can plug in various prices. Register(free) and sign off on their disclaimers and away you go....
Schwab Edge has a theoretical calculator that gives value and all the greeks, also covered calls. Works automatically when you click on the option.
Go out to the Options Industry Council home page, then the Tools and Resources tab - they have three options calculators and a covered call calculator (I tried to just send the URL and make it easy but the board stripped it)
I appreciate it Stoth.
OIC used to be the best, now its a pain as you have to enter so many variables each time, whereas, ivolatility automatically(like OIC used to) calculates it for you....
BTW...anyone know of any other sites for calculators??