Options Calculator: Implied Movement & More

The expiration date marks the deadline when a contract becomes void, defining your trading window.

• Time decay (theta) accelerates as expiration approaches
• Example: A June 2025 Tesla $200 call loses value faster in its final 30 days
• Strategic tip: Align expiration dates with events like earnings reports
• Impact: Choose longer dates for less theta decay, shorter for more leverage

The current stock price is the foundation for evaluating options value.

• Determines if options are in-the-money (ITM) or out-of-the-money (OTM)
• Example: At $150 stock price, $160 calls are OTM, $140 puts are ITM
• Real-time monitoring helps identify mispriced options
• Critical for calculating intrinsic value and potential profits

Predicts expected stock price movement based on options pricing.

• Shows market's expectation of future price swings
• Example: 15% implied move suggests $30 shift on a $200 stock
• Helps in structuring straddles or strangles
• Useful for event-driven trading (earnings, FDA approvals)

Defines projected price range for the stock's movement.

• Often aligns with technical support/resistance levels
• Example: $120-$140 bounds help identify breakout points
• Useful for range-bound strategies like iron condors
• Breach of bounds may signal significant trend changes

Measures market sentiment by comparing put vs call volumes.

• Ratio < 0.7: Bullish sentiment (more calls bought)
• Ratio > 1.2: Bearish sentiment (more puts bought)
• Helps identify potential market reversals
• Useful for contrarian trading strategies

Price point where option holders experience maximum losses at expiration.

• Example: At $450 max pain, prices may gravitate there near expiry
• Influenced by market maker activity
• Useful for weekly options strategies
• Helps understand potential price magnetism

Measures time until contract expiration, affecting option decay.

• Shorter-dated options decay faster
• Example: 7-day options lose more daily value than 30-day options
• Critical for managing theta decay
• Helps in selecting optimal contract duration

Combines multiple factors to identify optimal trade entry points.

• Integrates technical indicators (RSI, MACD)
• Considers implied volatility levels
• Helps time entries for maximum profit potential
• Useful for both directional and volatility strategies