How to use options calculator?

[abhinkoi]

Hi All,

Does any body know how to use options calculator to calculate the right premium value at which the Call or Put should be buy or sell?

What does these things means -
Interest Rate
Volatility

And how does dividend date, amount and frequency affects the premium price?

What are the things to consider when using the options calculator?

Any ideas wud be really appreciated.

Regards
Abhinav

 

[Traderji]

Here is a link to a good tutorial on option pricing:

http://www.cboe.com/LearnCenter/cboeeducation/Course_01_04/mod_04_01.aspx

 

[mfire]

Here is a link to a good tutorial on option pricing:

http://www.cboe.com/LearnCenter/cboeeducation/Course_01_04/mod_04_01.aspx

Thank you Traderji. The above link is very useful for education and gives good idea for trading in options.

 

[mfire]

Hi All
Can I get help for getting an idea of rollover of options contract? What can be the cost of rollover?

 

[ivanboesky]

The cost of rollover should be nothing but the time value for the contact that you want to rollover to.

 

[subratabera]

Hello everyone,

I have developed an OPTION CALCULATOR which can be used to calculate the fair value of the options of an entire chain provided by NSE website, and I am posting it here for review. Those of you who trade options please post your comments. Also suggest some ways to further modify it. I am eagerly waiting for your valuable comments...

P.S. - Those of you who do not trade options please don't comment.

Subrata Bera

 

[joy_mitali]

hello Subrata,
I think ---ur calculator deserves---a separate thread---I think in that way---all the discussions related to ur calculator----will be stored in a single place---
Apparently appearing good---will give further comments later--
Regards,
joy_mitali

 

[subratabera]

Hi Joy,

Thankyou for your reply. I am waiting for further cooments...

Subrata Bera.

 

[vince]

Subratabera,

Your calculator looks good so far, will test with live data in the coming week.

Regds

 

[jaypee]

hello senior
i have a doubt in your calculator,
(1)how volatility is calculated?
(2)rate of interest calculated?
pl reply.