Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
08-15-12 02:45 AM
Quote from trendtraderOL:
Hey guys. Which online or stand alone soft can you propose to calculate Profit/Loss on any given date before expiration if purchase price and purchase date for given option are known and they are in the past? Optionprofitcalculator.com is very helpful but it can only model if you buy option today. To illustrate what I mean. For example, I hold MSFT call 32 with expiration January 19, 2013. I bought it on April 25 2012 for 200. How can I calculate/model P/L of my position if on November 1, 2012 stock price would be 25 and I want to sell it? Thanks.
OK, if you're serious, this is quite simple. Just like a stock, an option position can be closed by either buying or selling the option. If you bought it for $200 - a $320 strike price call? Stock is trading at $564, so a 320 call has an intrinsic value of $264, which I'm sure is the bid on the thing. Therefore a $64 profit approximately.
Hope this helps,
Don
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Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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