Saturday, February 19, 2011

Valuable options strategy simulator.

A very valuable tools in options trading is mapping out what a particular strategy would result. More importantly, it will help you visualize what a certain trade would look like. A good options strategy simulator to try, and one I use frequently myself, is the one from the OIC (Options Industry Council). Enter the values of your trade, whether you long or short, the number of contracts, if it's a call or put, expiration date and set its volatility (optional).


Here's an example of my recent trade for DELL. It's just a simple basic call position, but it gives me a pretty good over view of what my options trade would result if price hits a certain criteria.

You can find the options simulator here.

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.