Intraday Option Calculator Manual

Intraday option calculator is the Unique Tool developed by Smart Finance for the 1st time in the world. This is one of the simplest and only tolls available as of today for making trade intraday decision on options. This tool uses the following procedure for deriving the price of option and volatility.

 

As a User you will provide the input as follows

 

1. Current Market Price of a Script.
2. Option Strike –Whose price you want to predict for intraday.
3. Current price at which the option is trading.
4. Days left till expiry (It is the number of calendar days left in a month for expiry (i.e. the last Thursday of every month in Indian market)).
5.  Which Type of option you want to forecast(either Call or Put)
6. Enter any volatility (enter a number greater than 20 if you want to find the Deep out of money call option or put option having single digit premium then enter volatility greater then 60).

 

This application will tell you at which price you should buy the option with what stop loss and what will be their target for 4 levels.

 

Below the 4 target level of the stock or index will be given for your reference. Each successive target of the option will happen if the underlying move to those target levels.

 

Example: Say SBI is trading at 1820 in cash market ,current market price of 1800 strike call option is trading at 105 and 27th august 2009 is the date of settlement. And as a layman I don’t not know the volatility hence I will enter any number greater than 20 in volatility box.

 

I will enter the followings in the option calculator:
Current Market Price …..1820
Strike price …..1800
Current option price…..105
Taking  3rd  august 2009 as the date of my trading I will enter
Time till expiry…..25( Total calendar trading days are 27- 2days lapsed )
Volatility…..25(Since I don’t know what is the volatility any number >20 I will enter)
Option Type I will choose……call

 Then I will submit

 

I will get the following output

Call Option Buy-Stop loss-Targets are
Buy At- 108.278
Stop loss-96.571
Target1-112.356
Target2-116.532
Target3-125.142
Target4-129.574

 

 

You must ask me when these Targets will come.
Refer the last table you will find different targets of the script as per Gann method. When the script will touch the buy target1 the call option target1 will achieve. Same way when the script will touch the sell target1 the put option target1 will achieve.

Benefit: the option intraday trading has less brokerage and only one side STT and has greater profit potentiality. After many Years of work ‘Newton Raptions method of interpolation’, using binomial option pricing model, Gann method I have developed this tool for the benefit of the intraday option traders. Your feed back and comments will make me to enhance this application. If you find any error then please put a mail to me in admin@smartfinancein.com .