As options traders, it is absolutely essential that we have the most appropriate tools to operate in the market and a free option calculator can really help.

And although it is true that the options chains offer us a lot of information, what they do not allow us to do is to anticipate price movements or to carry out our plans and strategies.

That is why, with an options calculator that allows us to calculate option premiums and set our strike prices, we can predict what our profit or loss will be in advance, allowing us to study whether it makes sense to make the operation or not.

Get Warsoption’s free option calculator here

If you don’t have a good options calculator yet, don’t worry.

We have at your disposal the free option calculator with which we perform practically all the examples that appear in Warsoption, and it’s this one here

This free and more basic options calculator replicates the Black-Scholes model of options when we enter the six essential parameters, and will return the value of the option premium along with its Greeks for both call and put options.

In addition to this, the free option calculator will return the probability of the option expiring In The Money, calculated in two different ways (using the delta probability and the Black-Scholes model’s own probability) so that you have all the information.

How to use Warsoption’s free option calculator

In order to use the calculator correctly, all you have to do is go to an option chain on which you are interested in buying or selling an option.

First look at the price of the underlying and then select the strike you intend to take.

After that, take the implied volatility of the call or put side depending on your trade and then get the interest ratio and the dividend value the company will pay out.

Finally, enter the number of days remaining until the contracts expire and type that value into the options calculator.

Once you have entered all the data, you will obtain on the right-hand side the premium price for the call and put contracts, as well as a breakdown of the current Greek and the probability.

With all this information that the options calculator gives you, you will be able to calculate much more accurately the profitability and the risk that the trade is subject to, and therefore make better decisions in the long run.

Need a more comprehensive options calculator?

Although the free option calculator allows us to obtain the values of the premiums, Greeks and probability of certain options, it does not have the ability to elaborate more complex strategies, to analyze the timing and volatility, and ultimately, to allow us the ability to trade in an advanced way.

If what you need is a really advanced calculator, which allows you to do all this and much, much more, we strongly recommend that you take a look at our Advanced Calculator in the following image and video.

If you are interested in acquiring it, we recommend you this link where you will find everything that the Advanced Calculator offers you