Is there a tool for comparing P/L for stock vs option on a single chart?

Discussion in 'Trading' started by teachamantofish, Feb 17, 2024.

  1. I took a look at that thread. There are lots of strategy screeners out there that show one position/strategy at a time.

    The reason I'm pursuing the "multiple P/Ls on a single chart" theme is because I trade bio and there are often large, predictable moves. Right now with IBRX I've positioned with ITM LEAPS which gets me a 130% larger position than I would with stock.

    However, let's say I expect 20 bucks in two years. Now I need to evaluate if the same amount of margin/cash would be better invested at a OTM 5.5 strike instead of a 3 strike if I get an TBD% more options and therefore more $$$ if IBRX reaches my price target.

    It's more complex than that of course, but the goal is to compare multiple plays on the same chart and place my bets accordingly.
     
    #11     Feb 17, 2024
  2. Well if you just want the track @ expiry then you've already got the spreadsheet .You just need to import the prices ie through barchart...as the prices update so will your current P/L which is what I wanted. If you want the theoretical price throughout the life of the contract, then you're going to need the black scholes model scripted into it...with barchart you can import IV so you can do the BS calculation in GS for any given price at x days to expiry, but a script would be needed to optimize. The problem with theoretical pricing is future IV is an unknown.
     
    Last edited: Feb 17, 2024
    #12     Feb 17, 2024
  3. I get it. For multiple trade lines I need to do it myself.
     
    #13     Feb 17, 2024
  4. traider

    traider

    Great work, please open source sheets so we can all improve it
     
    #14     Feb 17, 2024
    Quanto likes this.
  5. Post a link when you do it :)
     
    #15     Feb 17, 2024
  6. I tweaked mine to do multiple legs.

    Clipboard03.jpg
     
    Last edited: Feb 18, 2024
    #16     Feb 18, 2024
  7. Updated to highlight 1SD from the current price by the expiry date.

    Clipboard03.jpg

    Clipboard07.jpg
     
    Last edited: Feb 18, 2024
    #17     Feb 18, 2024
  8. Quanto

    Quanto

    @wxytrader, which strategy/s can be tested in your program? Can it test also LongButterfly (ie. 1L + 2S + 1L)?
    Do you use BSM for the final outcome at expiry, or do you use some own calcs?
     
    Last edited: Feb 18, 2024
    #18     Feb 18, 2024
  9. For the blue spreadsheet? I've never tried any uneven strategies...here's a butterfly.

    Clipboard01.jpg
     
    Last edited: Feb 18, 2024
    #19     Feb 18, 2024
  10. Quanto

    Quanto

    I mean this one https://optioncreator.com/long-butterfly (but it should be possible in yours by using 2 short legs with qty=1 instead of the 1 leg with qty=2)
    Do you use BSM for the final outcome at expiry, or do you use some own calcs?
    Or asked generally: how do you calc the plot lines? Are you using a library component or so?
     
    Last edited: Feb 18, 2024
    #20     Feb 18, 2024