Stock Options Software


As complicated as it is to try and trade stock options successfully, you need all the help you can get. It’s one thing to get stock options explained adequately to you when you are learning about these financial instruments, but it’s another thing to attempt to profit consistently from the trades that you make. Many options investors, of all experience levels, use stock option software to help them visualize the possibilities inherent in a given position that they are considering.

Fortunately there’s plenty on info to learn stock trading and free trading software available to help you. Normally these tools give you a wealth of information about the options chain of a given stock simply by you entering in the stock symbol. When you do, you’re presented with all the expiration months and option strike prices associated with the stock. You can then pick a contract and the software will instantly tell you where your breakeven point would be the as well as your maximum profit and loss, and myriad other information.

Option trading tools are very valuable when it comes to more complex trades such as spreads and straddles. In these trades multiple options contracts, known as legs, are bought and/or sold simultaneously so that one’s overall profit is dependent upon what happens to each of the underlying legs during the time the trade is on. It can be very difficult to visualize what your profit or loss will be at a given point in the future or at options expiration, without having it all in front of you in graphical form. Specifically, you can see exactly what you’re profit/loss would be at any price at which the stock will be trading at any point in the future. For most people a visual representation of risk/reward is extremely helpful and that’s what these tools are so good at providing.

The newer options trading software is even capable of representing different factors that determine the pricing of an option as a three-dimensional volume. Extremely complex shapes and surfaces are used to represent the the performance of every single one of a stock’s option expiration dates and strike prices, at all times until expiration.

If you decide to use these investment basics trading tools, be sure and try one or two of the free software packages available to you first, because frankly they are so sophisticated that in all likelihood you will not need much more functionality than the free tools provide. There’s really no downside to using software like this, try it and see if it helps your bottom line.



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