Hedge with Options on moomoo ——Options Price Calculator
While the S&P 500 was en route to a 1.4% gain Monday, the Cboe Volatility index — a gauge of cost on options tied to the stock benchmark also known as VIX — jumped more than 2 points to surpass 25.
Hello, mooers! Welcome to the Hedge with Options on moomoo series. Today we are going to talk about Options Price Calculator.
We often receive questions from mooers asking: “Is now a good time to buy this option?” or “Will the price suddenly tank after I buy it?”
Moomoo’s Options Price Calculator is here to help! It can be used to estimate the fair value of an option to determine if the current pricing is reasonable or not. From the tool, experienced mooers may even find some potential trading opportunities for individual stocks or options!
First, let’s take a look at what is an option’s price.
1. An option's price is primarily made up of two parts: intrinsic value and time value.
（1）Intrinsic value* is a measure of an option's profitability resulting from its immediate exercise.
*Intrinsic value is the value any given option would have if it were exercised today
If the current apple stock is US$151/share. The call options you bought will have intrinsic value if the strike price is less than US$151/share. It will not have any intrinsic value if the strike price is US$151/value and more.
（2）Time value is influenced by how much (or how little) time is remaining until an option's expiration.
It reflects the risk of an option’s market price volatility before the option's expiration. Typically, the more time remains until the option expires, the greater its time value.
Let’s take Apple's options as an example. From the following screenshots, we can see that if you want to buy two Apple options at a strike price of $147 on their expiration date, the time value of options that expire on Dec 16 is $4.1 higher than that on Nov 25.
source: moomoo, data dated 2022/11/30
2. Another factor that affects an option’s price is implied volatility, as mentioned in our last article. Want to know more about volatility? Tap here to go back to the last article>>
Now, let’s move on to today’s topic: what is moomoo Options Price Calculator?
Options Price Calculator is a tool that uses a mathematical model to help calculate the option contracts and estimate the changes in the price by adjusting the parameters.
Here's what the moomoo options calculator looks like.
Want to know more about how moomoo’s Options Price Calculator can help with your options trading? We’ve made a video for you! Watch the video below to know more:
On top of that, to better prepare you for the fluctuating market, "To the moo" offers you an Options Starter Kit*, including up to $60 option commission cards, margin reduction, and options courses.
Dsiclaiemrs:
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.
In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).
In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. is regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.
In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.futuau.com and https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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MooMamaLlama : awww
why am I not eligible?! so many awesome offers and features that I can't access.... ''unable to participate in this event" , "not eligible for this offer/event" , or more often "this event/promotion is not available in your region"
can someone pm me with some answers pleeeease? @To the Moo@Meta Moo@Moomoo Team@Moomoo AU
thanks in advance guys, I appreciate all your great work
102970152 : Hi, Moo, Do you have a similar tools for DLC fair value calculation?
101772986 :
12moon : Very educational.
慈愛的詹妮 :
NgKennykk : Nice
Dobot : nice
Cool traderrr :