If you are searching for Options Chart and its Actual Profit/Loss payout chart then this is the correct place for you to stand.
Though option prices derived from the share price but its charts are different from actual chart of the share or any underlying asset in which we trade.
When we compare charts of the options with chart of its underlying asset or say share price chart, both look very different.
When share price moves up by 1%, options price moves 30% and share price moves down by 1% then options price moves by 40%
Because there are many factors involved in the movement of the Options, like Risk of the Share, Time Value of money, Time for the expiration, market sentiments, Trade Volume in the share and its option, etc.
Beside market sentiments other factors can be calculated in Delta, Gamma, Theta, Vega & Rho.
These are the Options Greeks factored in deriving share price.
If you want to compare the price of the share with its any option then you have to have one trading account.
If you have it then you can start its charting software or otherwise click on the below button to open cheapest trading account and get the best charting software for mobile and computer.
With this software you can learn and understand each Options Greeks.
Drawbacks of Options Charts
When we decide to trade by using options charts we may caught in serious troubles.
What actually needs is that it will show prices which we can’t determine because it works on many other factors which I have shared below.
Normally share prices move from 1% to 5% up or down. But options prices have no limit to move. Because it is a derivative market.
Within a single day it moves from 0.05 to 500 and vice versa.
Remember that without proper trading plan we can’t get any success in Options.
Here I have shared a tool by use of which you can control your positions perfectly and minimize risks and potential losses and definitely earn much more than you think.
Payout Options Chart
As options possess substantial profits and hence it has substantial risk.
So, you have to employ different strategies of positioning options and Futures Trades.
Those strategies are like Long Straddle, Short Straddle, Long Covering, Short Covering, Vertical Spreads, and much more.
You have to decide what strategies to take to maximise your profit with high probability and minimize your risk of position.
And main thing is that to analyze these you have to invest much time in front of your computer to get data, process the data and then execute your action.
And it becomes very tough to do same thing in dynamic situation. Because every factor including sentiments change every second.
Then you have to employ software tools to do the same thing in seconds.
But most of them are highly expensive. But I assure you that I am going to teach you a very nice tool which is free for your limited use.
That software name is Opstra by Definedge
So that you can use the following method shown in this video.
This video will teach you how to know Payout of Options Charts and how to calculate brokerage and taxes also.
So, feel free to ask your doubts in the comment section below.
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Vaibhav Dhotre, ArableLife