An option trading calculator Excel is vital because trading options is not as simple as trading stocks.
In an option trading strategy built with more than one leg, it becomes almost impossible to track every single variable that affects our trade, and not having the right tools can make us lose control and money, something unacceptable.
You, as a serious trader, need the BEST option trading calculator Excel spreadsheet possible
With the right Option Trading Calculator, we can break down every single parameter in an easy and fast way, and track every detail, from the premium to the option greeks.
This is an extremely configurable, user-friendly Advanced Options Calculator Excel that will help us create every option strategy we desire and track everything we need, emphasizing the critical zones of the strategy and the behavior of the greeks.
The Main Features in our Advanced Options Trading Calculator
Advanced Options Profit Calculator Features
- Possibility to create and design any option strategy
- Complete visualization of the graph of the strategy and key points
- Tracking of all the Greeks, both graphically and numerically
- Possibility to add underlying points of interest with pointers
- Breakdown of each branch and of the entire option strategy
- Includes an Option Trading Journal integrated
- Easy to use, extremely fast and effective
If you want to know exactly how our option trading calculator works, click here to know every single detail!
But if you want our free option calculator, you can just download it here!
Your Free Option Trading Calculator
What is an option profit calculator excel?
An option profit calculator excel, or an option calculator excel is the main tool for an option trader that will help us calculate the premiums of the options contracts of a strategy when we open the trade using both call and put options.
Of course, we will not need to worry too much about the details of the trade for a one-legged strategy. If we only want to calculate the immediate premium of a single call or put, we can use a much more basic option trading calculator, like this one here.
This is our free and very basic Excel option calculator
This basic option trading calculator Excel is the one we use when we want to open simple strategies such as a covered call, a long call, or a long put. This one is like having a mini option chain calculator in Excel.
If you are interested in this particular option payoff calculator excel, you can download it here, along with out Options Guide completely free:
As you can imagine, the main disadvantage of this basic options profit calculator is that the capability of developing a more complicated strategy is much more limited. Also, it does not allow us to visualize the behavior of the strategy, nor the gains, losses, and greeks.
That is why we have developed a much more complete options profit calculator Excel that allows us to include much more option legs and a better and clearer vision of the overall strategy and of every option greek. It also includes an Option trading journal integrated in the Excel sheet so you can easily record and log every single trade you perform.
Our option trading Excel sheet
With our options profit calculator, we will be able to determine everything important to the strategy, such as the gains, the losses, or the break-even points, no matter which one we decide to use.
Why should we use an option trading calculator excel?
The main reason is to gain control over the trade. Whenever we want to open or close a position in the options market, we should always maintain control of our potential profits, but especially over our losses.
If we are going to be exposed to risk, the most complex strategies will require us to have the maximum control over the trade to be able to anticipate any possible scenario.
For example, if we wanted to execute a put credit spread, with our options profit and losses calculator, we will be able to know before opening that trade the maximum risks, profits, break-even points, the behavior of the strategy through time, and the behavior when the underlying price changes.
Of course, all this can be done without an option profit calculator excel, but it is going to be quite hard to track everything.
The aim of our option trading calculator excel is to simplify the option trades and to easily record them, so we only have to focus on choosing the best technical analysis strategies.
Using our Advanced Options Trading Calculator Excel
Our Advanced Options Trading Calculator Excel is composed of 6 sections that include a lot of information. To help you understand its features, we will be breaking down all of them, one by one.
Here you can check every section of our Option Trading Calculator Spreadsheet
Let us begin with the most basic feature: creating the option strategy combining both call and put options.
Section 1: Creating the Option Strategy in the Options Excel Calculator
With our Advanced Option Trading Calculator Excel, we will be able to create any option strategy that we want, even if it does not exist at all.
To do so, we have included 8 legs that we can use. In every one of them, we will be able to choose between call or put options, and we will be able to specify the underlying price, the strike price, the volatility, and the days to the expiration as you can see in the following image.
Section 1 is considered the options strategy builder Excel
In the option strategy payoff calculator spreadsheet, we have included both the interest ratio and dividends too. In the next row, we will be able to choose as many contracts as we want, either short or long.
Once we have defined our strategy, in section 1 of the option trading calculator we will see a breakdown of the premiums for each contract.
In this part of section 1 of our option calculator Excel, we will see the premium
The first row, “Premium 1 contract” will show us the premium for one contract, the second row “Premium/Contract” will show us the total premium for all the contracts of that leg. The last row will tell us the net value of the leg.
Lastly, on the “Entry Value” section of the options trading calculator in Excel, you can check whether we are making a payment (debit) or receiving a sum (credit) when opening the current strategy.
In addition to this, the premium is indicated in both cases. We will see the box in green for a credit and red if it is a debit.
The option strategy builder Excel will also show us the debit/credit of the trade
Section 2: Calculating graph and key points in the option payoff calculator Excel
In Section 2 of Our Advanced Options Strategy Calculator, we have included both the graph and the key points of the strategy, both at expiration and at the current date.
To help you understand how this works, we will create a bullish credit spread as an example of an option strategy.
Option Spread calculator Excel as an example
Let us breakdown this section little by little.
The graph of the option strategy
In this section, we will be able to quickly see how is the profit/loss profile of the option strategy in a very visual way.
Here is the graph of the Option Strategy Builder Excel created in section 1
As you can see, with the graph, we will easily identify the behavior of the strategy both at expiration and at the current date. If we want to change the resolution of the chart, we can always do so by modifying the graphic settings.
Changing graph resolution on the option trading calculator spreadsheet
Calculating maximum profit on the option trading calculator
The easiest way to know which is the maximum profit is to look at the “Maximum Profit” section, where we will be able to identify this value for both the current date and the expiration date.
The maximum profit on the option strategy calculator
For example, in this put spread, we have a maximum profit of $104.7 (the value we receive on the credit when we open the trade) when the underlying is over $79 at expiration.
Calculating maximum loss on the option calculator Excel
The easiest way to know which is the maximum profit is to look at the “Maximum Loss” section, where we will be able to identify this value for both the current date and the expiration date.
Reading the maximum loss on the option calculator Excel
For the option spread example in our options profit and loss calculator Excel, the maximum loss at expiration is $195.3 when the underlying is below $75.8.
Calculating the break-even point in the option calculator Excel
The easiest way to know which is the maximum profit is to look at the “Break-even” section, where we will be able to identify this value for both the current date and the expiration date.
Reading the break-even on the option calculator Excel spreadsheet
In our credit spread, the break-even point at the expiration date is between $78 and $77.8 of the underlying value.
Section 3: Tracking and Representing the Greeks
If you happen to have a broker that does not provide you with the greeks of the options, with our advanced options calculator excel, you will have absolutely no problem!
Section 3 of the option profit calculator has included a very deep analysis of the option greeks for every leg and the entire strategy.
In section 3, you will find out the greeks of the option strategy calculator Excel
With this information, we can now apply different techniques to enter or exit strategies, such as stopping a trade when it reaches a certain delta.
Additionally, under the name of “Greeks Strategy”, we can consult the total value of the greeks of the strategy.
You will also learn the total greek of the strategy in the option strategy builder Excel
Representing the Greeks of the strategy
We have added a graph in our options calculator excel, in which we will be able to see the behavior of the greeks in front of the underlying price.
You can choose which greek to monitor in the Options profit calculator Excel
Section 4: Using the Pointers in the option calculator Excel
In many situations, we might want to take any action attending to the behavior of the underlying price. This particular section is dedicated to that purpose.
In the option premium calculator Excel, you will find section 4 under the name of “Pointers”. Here, the idea is to use the pointer to establish a stop loss or a target price based on the underlying price.
For example, suppose we want to add a stop loss and a profit target to the credit spread strategy we have opened as an example. Let us take at section 4 of our option profit calculator in excel.
Option profit calculator excel
Since the underlying price value was at $80 at the opening, we could place a stop loss if the underlying falls to $79. That would result in a loss of $14.08 for the current date and a gain of $84.69 at the expiration date.
Besides, we can use the pointer to place a profit target when the value of the underlying asset reaches $82.5.
With the pointer, we will be able to calculate gains and losses on options for those key underlying prices we have selected, both at the current date and expiration. This will be useful to have a future projection of the behavior and define our strategy better.
Section 5: Breakdown of the premium of legs of the strategy
If we want to take a look at how every single leg behaves when the underlying price change in section 5, we will be able to do so.
Just under section 3 of the strategy payoff calculator, we will find section 5. This one will show us the values of the premium for both the expiration and the current date, and it is displayed for each leg.
In the tables, we will see various columns in which we can find the option premium for each of the legs and its corresponding value for the indicated underlying and the total sum of the branches. Also, you will be able to see the performance of all the greeks of the strategy depending on the current value of the underlying too. This will be particularly useful to those situation in which we want to be ahead of what it may happen in the market.
Here you can see the Option premium in the calculator Excel
The graph of section 2 is created from the data in this section, but here, you can check every data with much more detail. Also, the greek graph from section 3 has been created from the greeks obtained in this section.
Section 6: Using the Option Trading Journal feature of the calculator
The journal feature of the calculator is destined to transfer the most important data from the trade and the strategy in another Excel sheet where we can easily see the number of legs, the number of contracts, and the most valuable data of the strategy.
In this sheet, we can easily follow every single trade we have opened and closed, learning how much premium we have earned or lost, the date, and the commissions.
Section 6 of the Option Strategy Excel
Once we have set the ID, the strategy, the Ticker and the month, we are ready to go. Immediately after clicking on the button, the Calculator will start operating and the Transaction Log of the Option Trading Journal will open.
This is the Transaction Log of the Advanced Option Profit Calculator Excel
In the Log, the calculator will assign a row for every leg of the strategy so we can easily see the characteristics of every single contract.
As options are much more complex than trading with any other financial instrument, we have tried to make the Transaction Log as flexible as possible. For that reason, we must assign an ID for every single ticker so we can easily sort the trades just like in the following images:
Here we can see the Transaction Log whose Trades are disordered
And here we can see it ordered by just clicking on a button
That will help us to keep the strategies ordered and to follow up any new leg or adjustment we add, at the same time we keep track of other trades.
How do I get the Advanced Option Calculator Excel?
Our option calculator Excel can be purchased through this link to our Gumroad page or by clicking on the following image:
How much does the Advanced Option Calculator Excel cost?
The price of the calculator is $70.
Once you have acquired it, it will be yours forever, and you will have access to any future update for free!
Please note that this product is non-refundable.
What is included in the purchase of the Advanced Excel options calculator?
You will get three files:
- The Advanced Option Trading Calculator in Excel format (which is xlsm).
- The Transaction Log in Excel format (which is xlsx)
- The User Guide in PDF format.
Summary of our Advanced Options Calculator Excel Spreadsheet
We do not know if ours is the best options calculator Excel or not. Still, we can assure you that it is absolutely fast, easy to use, and reliable when we need to calculate any option strategy that exists or not in the market.
In any case, if you are looking to trade on any option market, and you want to deal with stock options, futures options, and even options on indices, it is vital to have the right tools to control our risk and calculate our profits
With our advanced option calculator, you will have every option trade covered, no matter what option strategy you use.
You will be able to know the strengths and weaknesses of the strategy, check the gains, losses, and neutral points, as well as how to elaborate plans and tactics using stop-loss and profit points once the trade is defined.
With our Advanced Option Calculator Excel, you will gain all the control you need to dominate every option trade!
If you are still unsure if options are for you, we highly recommend you to take a look at this article in which we discussed why selling options is the key to win more trades.