Options Price Calculator: How to calculate the future price of an option

Moomoo Options TA joined discussion · Apr 4, 2023 17:11

We've learned that the three main factors affecting the option premium are the time to expiry, underlying stock price, and implied volatility.

Now suppose you can adjust the values of the three parameters just mentioned. Can you calculate the potential option premium at a certain point in the future?

The answer is YES! Options Price Calculator, a practical tool on moomoo, can help you do just that, and we'll walk you through how to use it.

IMPORTANT: The projections or other information generated by the Options Price Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.

Options Price Calculator: How to calculate the future price of an option

[How to use it?]

Eric will now demonstrate how to use Options Price Calculator on moomoo.

The Options Price Calculator can derive an option's theoretical price>> Get an option's theoretical price in 3 seconds

[Case Study]

Let's now look at an example.

Note: Any app images provided in the content are not current and any securities shown are for illustrative purposes only and is not a recommendation.

Background

AAPL closed at US$159.000 on March 21, 2023.

Suppose we buy a call option with a US$160 strike price expiring on 09/15/23 for US$13.770. The multiplier is 100 and the total cost is US$1377.

Eric can use the [Option Price Calculator] function to help him better analyze potential trades. The following are a few common scenarios for the application of the option calculator.

Well, that's all for the options price calculator sharing.

You may unlock more applications of Options Price Calculator in real trading. Feel free to share your ideas in the Comments!

Disclosure

This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options (www.bit.ly/OptionsDisclosureDocumentFull) before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.

The hypothetical examples provided are for illustration purposes only and is not intended to be representative of actual results or any specific investment, which will fluctuate in value. The tool performs calculations based on model assumptions and other inputs and variables that you select, which may not be indicative of actual market conditions and do not take into account additional expenses and transaction costs such as applicable commissions, taxes, fees, and interest, which may affect the profitability of a trade and the value of your investments. This is also not investment advice or a recommendation to engage in any investment or financial strategy. The determinations made by this example are not guarantees or projections, and no taxes or fees/expenses are included in the calculations which would reduce the figures shown. Please keep in mind that it is possible to lose money by investing and actual results will vary.
All contents such as comments and links posted or shared by users of the community are the opinion of the respective authors only and do not reflect the opinions, views, or positions of Moomoo Financial Inc., Moomoo Technologies, any affiliates, or any employees of MFI, MTI or its affiliates. Please consult with a qualified financial professional for your personal financial planning and tax situations.

Disclaimer

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. is regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

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