Whether you are thinking of trading a straightforward one-legged strategy such as a long call or something more complex like an iron butterfly, it’s important to be well-informed about your potential profit and loss.
It’s even better to be prepared for a variety of outcomes as the underlying security you’ve traded could move sharply in your favor or sharply against you at any given time. Add in variables like volatility and time decay, and even the most straightforward trade can have complex results.
The Profit & Loss (P&L) calculator is one of the professional-grade trading tools on OptionsHouse and is available for all customers, including those with a virtual stock and options trading account. The calculator builds an illustration of any stock or options trade, up to four legs of any combination. (more…)
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