Introducing options analysis: Free & useful tool for options traders
Hi moomooers, having updated to the latest app version recently, some of you might have found a very important feature update, that is Option Analysis.
The Option Analysis page includes Option P&L diagram and Option exercise probability. In the latest update, we added Options combination analysis in P&L diagram which is worth noticing. These are very important and helpful functions for options traders.
Option P&L Diagram - Single
Moomoo provides the Option P&L diagram of a single option and some popular combinations. The diagram of a single option shows the most basic situation when trading options. You can get the break-even point, max profit and max loss intuitively by checking the P&L diagram. At the same time, Moomoo shows the advantage and disadvantage of every situation. If you want to know the profit or loss situation of covered call or protective put, you can adjust the filters in the top right corner of the diagram. In short, it's a very practical function for options traders, especially for novices.
Moomoo provides the Option P&L diagram of a single option and some popular combinations. The diagram of a single option shows the most basic situation when trading options. You can get the break-even point, max profit and max loss intuitively by checking the P&L diagram. At the same time, Moomoo shows the advantage and disadvantage of every situation. If you want to know the profit or loss situation of covered call or protective put, you can adjust the filters in the top right corner of the diagram. In short, it's a very practical function for options traders, especially for novices.
Option P/L Diagram - Combinations
The Option P&L diagram of combinations is more suitable for options traders with some experience. Moomoo now provides some most practical options combinations which include spread, straddle, strangle and etc. Under every situation, you can change the transaction price of every option, the direction of strategy, and choose the different option of strike price to fill the strategy.
The Option P&L diagram of combinations is more suitable for options traders with some experience. Moomoo now provides some most practical options combinations which include spread, straddle, strangle and etc. Under every situation, you can change the transaction price of every option, the direction of strategy, and choose the different option of strike price to fill the strategy.
More critically, Moomoo also provides a strategic analysis of every situation. You can get the break-even point, max profit or max loss, profit range or loss range, even the profit probability or loss probability from the diagram.
Some indicators are calculated by the Black-Scholes model and some exclusive algorithms. These data can help you estimate the value of the strategy.
In the future, Moomoo will provide more options strategy and allow users to define option combinations by themselves.
Probability of Option Exercise
The Option exercise probability can help us to estimate the size of probability that the option can exercise or be exercised at expiration. If the current exercise probability is 50%, it means that the option currently has a 50% probability that it can be exercised at expiration. The option exercise probability is estimated by using a certain algorithm combined with the B-S model, and it will change according to market fluctuations. Moomoo provides the current probability of option exercise and historical probability in the past ten days.
The Option exercise probability can help us to estimate the size of probability that the option can exercise or be exercised at expiration. If the current exercise probability is 50%, it means that the option currently has a 50% probability that it can be exercised at expiration. The option exercise probability is estimated by using a certain algorithm combined with the B-S model, and it will change according to market fluctuations. Moomoo provides the current probability of option exercise and historical probability in the past ten days.
How can I view Option Analysis?
1. Go to stocks' option chain by tapping the Options button at the bottom of the stock quote page;
2. Choose an option from the options chain and go to the option quote page;
3. Tap the Analysis button next to quote, that's it.
1. Go to stocks' option chain by tapping the Options button at the bottom of the stock quote page;
2. Choose an option from the options chain and go to the option quote page;
3. Tap the Analysis button next to quote, that's it.
The above is the all content of option analysis. We will constantly update more and more practical function of options in the future.
Some Options Basics to Learn
1. Definition of options
2. Types of options
3. Profit&Loss diagrams of options
4. Considerations before options trading
1. Definition of options
2. Types of options
3. Profit&Loss diagrams of options
4. Considerations before options trading
Thank you for reading. If you have any comments, please leave below.![]()
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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curtaincall : wow nice!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
14133276 : I am gonna leave something later
Team moomoo OP curtaincall : Thanks, your support is greatly appreciated.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Team moomoo OP 14133276 : We are looking forward to your comments!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
WildThang : The option analysis feature can help me learn how to navigate through the tools and resources available to conduct options research in order to formulate trading ideas and understand the overall options market sentiment.
FireWire2 : If FUTU can offer two legs options, that would be a HUGH winner.
lot of people sicking tired RH and want to move
Team moomoo OP FireWire2 : Hi, this has been forwarded to our colleagues. Thanks for your feedback.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Rusty Stewfart : I need better insights into how buying differentiated options affects my play immediately without having to research each purchase.
curtaincall Rusty Stewfart : It does provide combination analysis that offer you an insights of p/l when buying differentiated options
Knulp : Usually I purchase single option to hedge stocks I am holding, I am very new to options. And with the p/l diagram I don't need to do research on p/l strategy, just compared the p/l difference between difference strike price. I will look into the combinations to learn better trading strategies!
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