Navigate to the Toolbox tab and select Trade Calculator.As a trading tool, Trade & Probability Calculator lets you check the potential investment risk or reward of an order you are about to place, in a graphical and tabular format.
As an analysis tool, the Trade & Probability Calculator analyzes the potential risk and reward of a strategy based on possible values of the underlying stock or future at different periods of time.
Navigate to the Toolbox tab and select Trade Calculator.
Enter a Symbol or click on the Option link.
TIP: Click on Add a Leg or select a number from the Legs dropdown to add additional Symbols.
For each leg of your trade enter the (stock/option) Symbol, select the Action (Buy or Sell), and Enter the Quantity (Shares or Contracts).
Select what type of Price you want: Market, Limit/Credit, or Limit/Debit.
NOTE: Press Flip Action if you want to analyze the other side of the trade.
The Trade and Probability Calculator provides calculations that are hypothetical in nature based on various inputs including Implied Volatility, Dividend Yield, Interest Rate, user-defined price ranges and time. The calculations do not reflect actual investment results nor do they guarantee future results. The calculations do not consider any commissions or other costs, nor other positions in your account(s) for which a specific trading scenario is being examined. Rather, these calculations are based solely on selected contract(s) and/or equity in the specific trade strategy.
Although, the calculations incorporate annualized dividend yields, they do not consider ex-dividend dates, early assignment, and other risks associated with option trading. If an option expires before the estimated date, it is treated as though it expires on the estimated date. Investment decisions should not be made based solely upon values generated by the Trade & Probability Calculator. (0419-98L5)
StreetSmart Central™ makes no investment recommendations and does not provide financial, tax or legal advice. Content and tools are provided for educational and informational purposes only. Any stock, options, or futures symbols displayed are for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular security. Products and services intended for U.S. customers and may not be available or offered in other jurisdictions.
Commissions, taxes, and transaction costs are not included in any of these strategy discussions, but can affect final outcome and should be considered. Please contact a tax advisor to discuss the tax implications of these strategies. Many of the strategies described herein require the use of a margin account. With long options, investors may lose 100% of funds invested. In-the-money long puts need to be closed out prior to expiration, since exercising them could create short stock positions.
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple leg options strategies will involve multiple commissions. Covered Calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. Spread trading must be done in a margin account. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options."