One of the most important tools for options traders is an options profit calculator, which enables you to see your potential gains and losses for a specific option strategy. This will allow you to visualize whether the strategy is consistent with your expectations for the underlying stock. Before you enter a trade, the options profit calculator tool gives you the chance to fine-tune your strategy as necessary to achieve the best possible risk/reward ratio. Additionally, you can be more assured in your trade because you conducted the necessary research before investing your capital.
To make your life easier, you can run the options profit calculator right from the option chain. Simply select the option contracts by clicking on the options prices and the tool will populate the relevant information for you into the calculator. Once you have selected the option contract or multi option combinations you can hit calculate to generate a visual graph of the profit and losses for your strategy. Then you can make adjustments to optimize your trading strategy.
1. Type in a symbol in the search box and then click Search. As you can see, in the image the symbol AAPL was entered.
2. After you type in the symbol, you will arrive at the main page (AAPL in this example). Select Option Chain from the left hand side menu bar as shown in the image.
Selecting Option Contracts to enter into the options calculatorFirst you want to select the option expiration to pick your option contracts. You can click on the expiration on the left hand selection box as shown below under "Select Expiration". After you click on the expiration date, the option chain for that expiration will display to the right hand side. In the image below the 20-Jan-23 Expiration was clicked, resulting in the option chain to display options that expire 20-Jan-23 on the right side.