Option Evaluator Help - General Information

This page allows the user to input information about 2 options and 1 underlying instrument. It will calculate either the option value (if volatility is supplied) or volatility (if option value is supplied). The two options should be based on the same underlying instrument used.

To Option Evaluator

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Detailed Help for each entry in the Option Evaluator is available

For the Option Evaluator you need to know:

Option strike
Expiration date
Type of option (Put or Call)
Market value of the option or volatility
Market value of the underlying instrument
Type of underlying instrument - (Equities or Index , Futures, Rate - used for Euros or Fed Funds)

Basic Usage of Evaluator

1). Enter the underlying Market Price, the Option Strike and Expiration Date
2). If you know the option value, enter it, and the implied volatility will be calculated
3). If you know the volatility you want to use, enter it and the option value will be calculated

To use the Forecast Matrix:

1). Enter the price increments you want to evaluate at.
2). Click on the button to choose whether you want option values or Profit and Loss calculated.
3). To Calculate:

Click on the Option1 or
Option 2 or
Option 1 + Option 2 + Security

4). To Generate a Graph: Choose Graph in the "Output" dropdown and then follow 3 above.

Examples Page