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

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 theoretical 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.

With it, you can:

Case Study

Let's now look at an example.

Background

We can use the [Option Price Calculator] function to potentially help us better analyze how different factors affect option prices. The following are a few common scenarios for the application of the option calculator.

Scenario 1: Determine whether the actual price of the option may be reasonable at this time?

Scenario 2: How to calculate an option's theoretical price?

Scenario 3: How to calculate possible entry to open or close the position of an option?

Scenario 4: How to potentially manage risks in the face of negative news?

Scenario 5: Gain a better understanding in options Greeks.

Tips on setting the parameters:

That's what today's lesson is all about. If you want to learn more about options, please follow [Moo Options Explorer] for timely updates!