Bullish exposure. The buyer’s maximum loss is generally premium and costs paid; theoretical profit can grow with the underlying.
Guides
Options guide
Before strategies, remember the four basic directions: buy or sell a Call, buy or sell a Put.
The four basic option trades
Bearish exposure. The buyer’s maximum loss is generally premium and costs; profit is bounded because the underlying cannot fall below zero.
You receive premium in exchange for an obligation. If the call is uncovered, theoretical loss can be unlimited.
You receive premium and may be required to buy the underlying at the strike. A cash-secured put reserves cash for that possibility.
Fields that appear frequently
Premium
Quoted per underlying unit and multiplied by contract multiplier and number of contracts to obtain total monetary value.
Strike
Contract price at which the underlying may be bought or sold according to the option’s rights and obligations.
Multiplier
Converts unit premium and payoff into contract money value. Do not assume it is always 100: check the actual contract.
Assignment
The option seller’s obligation being assigned. American-style options may be exercised before expiration.
Strategies currently in Trade Math
Covered Call
Owned shares + short call. Premium offsets part of the cost, stock downside remains broad and upside is capped above the strike.
Open toolProtective Put / Married Put
Shares + purchased put. The put creates downside protection below the strike in exchange for its premium.
Open toolVertical Spread
Combines two options of the same type at different strikes. The current tool models debit Bull Call Spreads and Bear Put Spreads.
Open toolCovered Call Exit Plan
Combines shares + calls and shows break-even, total P/L and exit scenarios.
Open toolHow to read the Covered Call Exit Plan
The combined result adds share P/L to the net result of the calls. To model a manual exit from an open call, add its BTC; to model assignment at the strike, do not add a BTC that would not occur.
Call transaction CSV
The CSV is only for STO and BTC and uses four columns: type, contracts, price, commission. Contract quantity is always positive; STO/BTC determines the sign. Import does not change share data or currency.
Open toolFORM REFERENCE
Every field explained
Each block matches one tool. Every field explains what it represents and what value belongs there. Prices and commissions stay separate so calculations remain readable and verifiable.
Buy Call / Buy Put
Open toolOption type
Select whether you are buying a Call or a Put; this changes payoff direction and scenario behaviour.
Currency
Currency in which the tool expresses prices, costs and results.
Current underlying price
Current price of the underlying on which the option is written.
Strike
Contract price at which the option’s right or obligation applies.
Unit premium paid
Unit premium paid to buy the option before commissions. Total cost also depends on multiplier and number of contracts.
Number of contracts
Number of contracts. It must be a whole number and scales economic exposure, covered units and often commissions.
Multiplier
Number of underlying units represented by one contract. Check the actual specification: not every contract uses 100.
Tax on profit (%)
Tax percentage used by the simplified model on positive results. Enter the percentage number, for example 26 for 26%.
Option opening commission
Total commission to open the option position.
Option closing commission
Total expected or actual commission to close the option position.
Special exercise/expiration cost
Optional special exercise, expiration or settlement cost. Do not use it to duplicate an ordinary commission already entered.
Underlying price in the scenario
Assumed underlying price at which you want to inspect the position result.
Result shown on the chart
Chooses which result the chart displays, for example before or after simplified tax.
Minimum chart price (optional)
Optional minimum price on the chart axis. Leave blank to use the automatic range.
Maximum chart price (optional)
Optional maximum price on the chart axis. It must be above the minimum when both are set.
Expected unit sale premium
Unit premium at which you assume the purchased option could be sold before expiration to simulate an early close.
Desired net profit (optional)
Net profit you want to achieve. The tool works backwards to estimate the required price or result after modelled costs and tax.
Sell Call / Sell Put
Open toolSale type
Select which option you are writing: SELL Call or SELL Put. Obligation, risk and payoff behaviour differ.
Option style
States whether the option is American or European. Style mainly affects exercise and assignment before expiration.
Currency
Currency in which the tool expresses prices, costs and results.
Current underlying price
Current price of the underlying on which the option is written.
Strike
Contract price at which the option’s right or obligation applies.
Unit premium received
Unit premium received for writing the option before commissions. It is the initial credit, not profit already earned.
Number of contracts
Number of contracts. It must be a whole number and scales economic exposure, covered units and often commissions.
Multiplier
Number of underlying units represented by one contract. Check the actual specification: not every contract uses 100.
Cash reserved for possible assignment
Cash you plan to keep available for possible SELL Put assignment. It is used to assess whether the position is cash-secured in the model.
Simplified tax on profit (%)
Tax percentage used by the simplified model on positive results. Enter the percentage number, for example 26 for 26%.
Option opening commission
Total commission to open the option position.
Option closing commission
Total expected or actual commission to close the option position.
Total special assignment/settlement costs (optional)
Optional special assignment or settlement cost, separate from ordinary opening and closing commissions.
Underlying price in scenario
Assumed underlying price at which you want to inspect the position result.
Result shown on chart
Chooses which result the chart displays, for example before or after simplified tax.
Minimum chart price (optional)
Optional minimum price on the chart axis. Leave blank to use the automatic range.
Maximum chart price (optional)
Optional maximum price on the chart axis. It must be above the minimum when both are set.
Current unit premium to buy back the option
Unit premium you would pay today to buy back the written option and close the position.
Covered Call
Open toolAverage share execution price
Average execution/fill price excluding the historical purchase commission. When the tool provides for it, enter that cost separately in the commission field.
Total shares owned
Number of shares owned in the position. It determines how many units can be covered or protected by the contracts.
Current share price
Current underlying price used as the reference for the position, chart and strategy status.
Call strike
Contract price at which the option’s right or obligation applies.
Unit premium received
Unit premium received for writing the option before commissions. It is the initial credit, not profit already earned.
Calls written (contracts)
Number of contracts. It must be a whole number and scales economic exposure, covered units and often commissions.
Multiplier / covered shares per contract
Number of underlying units represented by one contract. Check the actual specification: not every contract uses 100.
Option style
States whether the option is American or European. Style mainly affects exercise and assignment before expiration.
Currency
Currency in which the tool expresses prices, costs and results.
Simplified tax on profit (%)
Tax percentage used by the simplified model on positive results. Enter the percentage number, for example 26 for 26%.
Stock purchase commission
Purchase commission for the shares forming the stock leg of the strategy.
Option opening commission
Total commission to open the option position.
Option closing commission
Total expected or actual commission to close the option position.
Special assignment/settlement cost
Optional special assignment or settlement cost, separate from ordinary opening and closing commissions.
Share price in the scenario
Assumed underlying price at which you want to inspect the position result.
Result shown on chart
Chooses which result the chart displays, for example before or after simplified tax.
Minimum chart price (optional)
Optional minimum price on the chart axis. Leave blank to use the automatic range.
Maximum chart price (optional)
Optional maximum price on the chart axis. It must be above the minimum when both are set.
Current call premium to buy it back
Current unit premium of the written Call, used to simulate the cost of buying it back before expiration.
Expected dividend per share before expiration
Expected dividend per share relevant to the period. For American Calls it may affect early-assignment risk.
Protective Put / Married Put
Open toolAverage share execution price
Average execution/fill price excluding the historical purchase commission. When the tool provides for it, enter that cost separately in the commission field.
Total shares owned
Number of shares owned in the position. It determines how many units can be covered or protected by the contracts.
Current share price
Current underlying price used as the reference for the position, chart and strategy status.
Put strike
Contract price at which the option’s right or obligation applies.
Unit premium paid
Unit premium paid to buy the option before commissions. Total cost also depends on multiplier and number of contracts.
Puts purchased (contracts)
Number of contracts. It must be a whole number and scales economic exposure, covered units and often commissions.
Multiplier / protected shares per contract
Number of underlying units represented by one contract. Check the actual specification: not every contract uses 100.
Currency
Currency in which the tool expresses prices, costs and results.
Simplified tax on profit (%)
Tax percentage used by the simplified model on positive results. Enter the percentage number, for example 26 for 26%.
Stock purchase commission
Purchase commission for the shares forming the stock leg of the strategy.
Option opening commission
Total commission to open the option position.
Stock sale commission at stop
Expected commission for selling the shares if the stop exit is executed.
Special exercise/expiration cost
Optional special exercise, expiration or settlement cost. Do not use it to duplicate an ordinary commission already entered.
Share price in the scenario
Assumed underlying price at which you want to inspect the position result.
Result shown on chart
Chooses which result the chart displays, for example before or after simplified tax.
Minimum chart price (optional)
Optional minimum price on the chart axis. Leave blank to use the automatic range.
Maximum chart price (optional)
Optional maximum price on the chart axis. It must be above the minimum when both are set.
Hypothetical stop price
Price at which you plan to exit to limit loss. It is a simulation price: a real stop may fill worse after gaps or slippage.
Assumed stop slippage (%)
Assumed adverse difference between the stop price and the actual share sale price.
Desired maximum loss
Maximum net loss you want not to exceed. The tool uses it to estimate how much protection budget may be sustainable.
Vertical Spread
Open toolSpread type
Selects the supported Vertical Spread type, which determines strike ordering and expected payoff.
Current underlying price
Current underlying price used as the reference for the position, chart and strategy status.
Long-leg strike
Strike of the option purchased in the Long leg of the spread.
Unit premium paid
Unit premium paid for the Long leg of the spread.
Short-leg strike
Strike of the option written in the Short leg of the spread.
Unit premium received
Unit premium received for the Short leg of the spread.
Contracts per leg
Number of contracts used on each leg. The model assumes equal quantity on both legs.
Contract multiplier
Number of underlying units represented by one contract. Check the actual specification: not every contract uses 100.
Currency
Currency in which the tool expresses prices, costs and results.
Simplified tax on profit (%)
Tax percentage used by the simplified model on positive results. Enter the percentage number, for example 26 for 26%.
Underlying price in scenario
Assumed underlying price at which you want to inspect the position result.
Result shown on chart
Chooses which result the chart displays, for example before or after simplified tax.
Minimum chart price (optional)
Optional minimum price on the chart axis. Leave blank to use the automatic range.
Maximum chart price (optional)
Optional maximum price on the chart axis. It must be above the minimum when both are set.
Current long-leg premium
Current unit premium of the Long leg, required together with the Short leg to simulate an early close.
Current short-leg premium
Current unit premium of the Short leg, required together with the Long leg to simulate buyback and early close.
Spread opening commission
Total commission to open the spread according to how your broker charges the order.
Spread closing commission
Total expected or actual commission to close the spread.
Total special expiration settlement costs (optional)
Optional total special settlement cost assigned to spread expiration, separate from normal commissions.