Playbook lab
Choose a scenario. See the trade-offs. Understand what changes the outcome.
Explore the possibilities
One view. Every trade-off.
Choose an outlook, then move the stock price. The chart shows what you pay, where you break even, and what you can gain or lose.
Same position. Different paths.
Estimated profit or loss as price and remaining time change. Columns are scenarios, not probabilities.
What moves this position?
Modelled sensitivity for the entire position at the reference price. Change an input and see how the balance changes.
Expiry profit or loss follows the entered legs. Earlier values use a European option model with constant volatility and the stated rate and dividend yield. US stock options can be exercised early; assignment, changing volatility and execution prices can change actual results.
Inside the position
Edit strikes and premiums to test your own assumptionsRead the picture
Options, in plain sight.
01 Price is only part of the story
A call can lose value even when the stock rises. The rise may be too small, time may run out, or implied volatility may fall. Use the lab to hold price steady and change days or volatility.
02 Volume is activity, not intent
Volume counts contracts traded during a session. Every transaction has a buyer and a seller. Call-heavy activity alone does not tell us who initiated the trade or whether it was part of a hedge.
03 Open interest is an outstanding position
Open interest counts contracts still outstanding, usually reported after clearing. A busy session does not necessarily create new positions. A large concentration at a strike is a place to investigate, not a guaranteed support or resistance level.
04 A priced move has no direction
A near-money call and put can describe the cost of exposure to a move in either direction. The displayed range is a pricing reference. It is neither a price target nor a fixed probability interval.
05 A high IV needs a comparison
Implied volatility describes the movement reflected in option prices, expressed as an annualised percentage. Compare the same stock across expiries, strikes and dated history. A high value alone does not prove an option is expensive.
06 The spread is part of the cost
The bid is the quoted selling price; the ask is the quoted buying price. Their difference matters, especially on a position with several legs. A midpoint is an estimate, not an assured fill. Saved-quote playbooks buy at the ask and sell at the bid.
Learn more: OIC: understanding the Greeks ↗ · OIC: strategy reference ↗