Calculating options pricing plays a crucial role in options trading. It helps traders detect whether a trade is worthy of taking. It helps traders to calculate how much an option will value after a certain time.
A Guide to Calculating Your Options’ Worth
Spot Price:
Enter a value between 10 and 20,000.
Strike Price:
Enter a value between 10 and 20,000.
Volality(%):
Enter a value between 1 and 100.
Interest(%):
Enter a value between 1 and 100.
Expiry:
Choose a future date for expiry.
Dividend:
Enter a value between 5 and 300.
Calculate
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Type
Value
Call Status
–
Call Price
–
Call Delta (Δ)
–
Call Rho (ρ)
–
Call Theta (θ)
–
Put Status
–
Put Price
–
Put Delta (Δ)
–
Put Theta (θ)
–
Put Rho (ρ)
–
Vega (v)
–
Gamma (Γ)
–
Calculating Options Greeks & Valuation
Step-by-Step Calculation:
Input the current market price of the underlying asset into the 'Spot Price' field.
Enter the exercise price at which the asset can be bought or sold into the 'Strike Price' field.
Specify the expected market volatility of the asset's price in the 'Implied Volatility (IV)' field, represented as a percentage.
Input the risk-free interest rate, typically derived from government bond yields, into the appropriate field.
Select the expiration date of your options contract and note any annual dividends paid by the underlying asset.
The calculator will display Delta, Gamma, Theta, Rho & Vega for both put and call options.
→ Output Information
The calculator will provide Delta, Gamma, Theta, Rho, and Vega values for both put and call options.
Model LImitation:
Note that the Black-Scholes Option Pricing Model applies solely to European vanilla options.
Further Learning:
For a deeper understanding of Options Delta and its application, refer to our comprehensive article on Options Greeks.
Disclaimer:
The financial calculators provided on this site are for informational and educational purposes only. We do not guarantee the accuracy, completeness, or reliability of the data or calculations. Any decisions or trades made based on the results of these calculators are solely at your own risk. We are not responsible for any errors, omissions, or discrepancies in the data or outcomes. Always conduct your own research or consult a professional before making financial decisions.
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